By Margie Inggs

Durban - Labour legislation, high interest rates and a volatile currency could cost the textile and associated industries 30 000 jobs over the next year unless challenges were addressed urgently, Walter Simeoni, the president of the Textile Federation, said yesterday.

"The industry will be pregnant with inflationary pressure for the next year, which will have a multiplier effect on the whole textile pipeline from fibres to final packaging," he said.

Simeoni urged the government to assist the industry by stabilising import tariffs at their existing level for three years and joining forces with the industry and labour to establish a textile industry development council.

The government has met World Trade Organisation tariff reduction requirements three years ahead of schedule.

"All we're asking is that current levels are maintained for the next three years to give the industry time to stabilise," he said. "Thereafter, the reduction programme could resume."

The textile industry wants to model itself on the motor industry, which has a highly successful development council that has driven it to become one of the leading manufacturing industries in the country.

"The council would also improve communication with the government and ensure the accountability of each member so that the necessary steps to bolster the industry could be taken as quickly as possible," he said.

Moloko Leshaba, the deputy director of the textile section of Trade and Industry SA, said a strategy plan had been received from the industry in February.

"The department is considering the financial implications of setting up a development council and has asked the Textile Federation for further information."

The department of trade and industry funds the administrative costs of the motor industry secretariat.

"The department of trade and industry is aware of the urgency of agreeing with industry and other stakeholders on a clear way forward. However, should a textile development council require secretariat assistance amounting to more than R500 000 a year, the contract will have to go out to open tender."

Arrangements are being made for a second presentation by the industry, which the department hopes will take place this month.