Hundreds of textiles jobs at risk

Competition and the strong pound have hit Courtaulds

Courtaulds Textiles has announced a restructuring of its factories in Nottinghamshire which has put 500 jobs under threat.

The company plans to close plants in Nottingham and Mansfield, which could put 400 people out of work.

Changes in the structure at a factory in Worksop could result in a further 100 redundancies.

The news came as MPs from all three main parties were calling on the government to help the UK's ailing textiles industry.

They told a debate in Westminster Hall, the parallel Commons chamber, that the strong pound and global competition were seriously harming the sector, with thousands of jobs at risk.

Falling order books

Those were reasons Courtaulds gave for its decision. It said falling order books had already led to shorter hours for some staff.

The company will be consulting with unions to see if there is an alternative, but fears it might have no option but to shed the 500 posts.

Trade and Industry minister Richard Caborn told MPs he understood the problems UK textile businesses faced but did not promise an injection of public cash.

Labour's Judy Mallaber said the industry was worth £17bn to the British economy and employed 306,000 people.

But in 1998-99, 36,000 jobs had disappeared as firms closed or moved abroad.

Textile firms are "an endangered species"

Textile manufacturers saw the help given to farmers, Rover and BAE and felt they deserved similar aid, she said.

"Now really is the time when we either grasp the future or we accept the continuing decline in the industry," argued Ms Mallaber.

"Nobody can have failed to hear the anguish of recent months and years, the screams that we are hearing as jobs go."

Conservative David Tredinnick said textile firms were an "endangered species".

Marks & Spencer, the largest textile retailer, was a "major problem" as it could close companies just by ending a contract and buying from abroad.

Sector 'bruised'

"It seems that this government has all but forgotten the textile industry," he said, urging ministers to take action and not just offer words of encouragement.

For the Liberal Democrats, Michael Moore said the sector was "badly bruised" from years of difficult trading conditions exacerbated by the strong pound.

M&S is sourcing more of its products overseas

"Few industries know the blast of global competition quite like textiles," he said.

Shadow trade and industry secretary Angela Browning warned that the government was making things worse through over-zealous application of European Union regulations.

She was particularly concerned about the climate change levy, which she said should be modified so that it did not penalise businesses which had already invested in the cleanest technology available.

Mr Caborn acknowledged the problems caused to UK manufacturers by the loss of Marks & Spencer contracts, and accused the giant retailer of being "arrogant".

But he said recommendations from a taskforce set up to look at the textiles industry were only "provisional", and it would be premature for him to respond to its calls for government help with training and equipment.