Clothing export quotas 'unfair'
A factory owner told legislators yesterday the quota system for clothing exports was unfair.
The owner, who would only identify himself as Mr Wong, said the system encouraged businesses to sell their quotas to manufacturers.
'The unfair quota allocation system has added a burden to small and medium enterprises, leading to further lay-offs and closures,' Mr Wong said.
He said quotas for US-bound clothing were in the hands of several major businesses who had been among the first to start exporting to the country.
Holders have to use 51 per cent of the quotas allotted to them by the Government, but can sell the rest to other manufacturers.
Mr Wong alleged that some quotas had been wasted last year because manufacturers could not afford the prices.
Liberal Party legislator Sophie Leung Lau Yau-fun, who represents the textiles and garment industry, said transfers were intended to make sure all the quotas were used.
'What's more, there are cases where a hot category changes into a cold category,' Mrs Leung said, referring to the fact that changing demand for some categories of garments also had a bearing on quota prices.
Also hearing Mr Wong's complaint yesterday were Cyd Ho Sau-lan of The Frontier, Lee Wing-tat of the Democratic Party and non-affiliated member Bernard Charnwut Chan.
Members pledged to follow up the issue at the trade and industry panel meeting on September 7.
Last night, assistant director-general of trade Edward Yau Tang-wah said 75 per cent of quotas were used last year.
