Home RMG News Muhith terms Accord and Alliance nooses in RMG sector development

Muhith terms Accord and Alliance nooses in RMG sector development

Finance Minister AMA Muhith has termed the recent activities of the Accord and Alliance as ‘nooses’ in the growth of the country’s RMG sector.  The minister made this remark while talking to the reporters yesterday after a meeting with the leaders of different associations of the country’s readymade garment sector. BGMEA President Atiqul Islam and BKMEA President AKM Selim Osman were present during the briefing. Muhith accused the Accord and Alliance of hatching a conspiracy to suppress growth of the RMG sector while the condition of the country’s RMG sector has been improved.  Accord and Alliance are the two global retailers’ platforms by the European Union (EU) and North American countries working in Bangladesh to establish labour rights and promote work place safety in the readymade garment sector. Terming the directives of the Accord and Alliance ‘unfortunate’ the minister alleged that this kind of activities are hindering the activities of the garment factories.  In this regard, BGMEA President said, “The way the staffs of the Accord and Alliance have stringently inspected the garment factories in the country is nothing but a rare stance in the world.”   As the garment factory owners will have to fulfill conditions set by the Accord and Alliance,  the overall expenditures of a factory owner are to increase by Tk5 to Tk20 crore, he added. “Accord and Alliance have put negative comments on their websites on the exportable items of those garment factories that are unable to comply with their conditions.”  In this connection, the minister said, “We’re aware of the negative activities of the Accord and Alliance on country’s garment sector.” “We will discuss about the matter with Commerce Minister Tofail Ahmed and even with Prime Minister Shiekh Hasina,” warned the minister. Muhith also said, “If it is necessary, we will also raise the issue with the European countries and North American countries USA and Canada” Regarding the increase of tax at source on earning from exportable items from 0.35 to 1%, the minister again said, “We will soon sit with with Prime Minister Sheikh Hasina to settle the matter”. Leader of the RGM sector have also raised a five-point demand including withdrawal of 1%  duty on import of capital machinery and 10% income tax on the owners of garment factories.  But, Muhith urged the garment factories owners to immediately relocate their garment factories Dhaka to Baushia of Munshiganj district.