Finance Minister AMA Muhith deplored that Accord and Alliance-two bodies of buyers from America and Europe-were tightening a throttling noose around the neck of Bangladesh’s garment industry through overreaching safety inspections. “They (Accord and Alliance) were welcomed to help us to attain buyers’ confidence, but their activities have now become a noose for apparel industry. They are exercising extra sovereign power,” the minister said at a meeting with the industry leaders, who spoke of excesses on part of the duo. Expressing concern about their activities Mr Muhith termed such pressure unfortunate. “The most important thing to me is the environment of inspection and pressure for unusual improvement. It is becoming a big pressure. I shall have discussion among us with commerce minister, industries minister, and prime minister. Then I shall call those countries from where Accord and Alliance (members) came,” he said. The minister termed the attempts of the two western coalitions as move to stunt Bangladesh’s progress. “It’s like Bangladesh has grown up too much. Now stop it. It’s an attitude of charging baton. I will settle it with very strong message,” he assured the apparel-makers. Before Mr Muhith made these observations president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Atiqul Islam apprised the minister about the activities of Accord and Alliance when he said the two bodies imposed ‘impossible tasks’ on them. “The Accord and Alliance are inspecting each and every factory in Bangladesh. There is no instance of it globally except 10 per cent random inspection. The factory owners are compelled to meet the requirements according to their will,” he alleged. Mr Islam said each factory is now required to spend Tk 50 million to Tk 100 million to meet Accord and Alliance’s conditions. Otherwise, they are asking buyers not to source garments from those factories. He said due to ‘unnecessary’ spending the cost of production has increased, leading to loss of competitiveness to countries like Cambodia and so. Mr Islam said the sector faces challenge because of Euro, Canadian dollar and Russian Ruble’s devaluation against the US dollar, which led price cut by buyers. The BGMEA president requested the minister to reconsider the budgetary proposal of increasing tax at source to 1.0 per cent from 0.30 per cent and imposition of 1.0 per cent duty on capital machinery imports, among other demands. The ‘Accord on Fire and Building Safety in Bangladesh’ is a five-year legally binding agreement among international labour organisations, non-governmental organisations, and retailers engaged in the textile industry to maintain minimum safety standards in the Bangladesh textile industry: On the other hand, the ‘Alliance for Bangladesh Worker Safety’ was founded by a group of North American apparel companies and retailers and brands who have joined together to develop and launch the Bangladesh Worker Safety Initiative, a binding, five-year undertaking that will be transparent, results-oriented, measurable and verifiable with the intent of improving safety in RMG factories. These two bodies started working in Bangladesh following deadly incidents in Rana Plaza and fire incidents at Tazreen Fashions where hundreds of garment workers died and burnt alive. During the meeting, Mr Muhith said the issue of lowering tax at source and withdrawal of duty on machinery import needs to be consulted among the departments concerned. He assured the apparel-makers that the market conditions of the sector would be taken into consideration as the Prime Minister has “soft corner” for this particular industry. “The softness is because of labour employment which is very important for this country. Every year we get additional 1.8 million labour forces for whom we need to do something. You have excellent record in this case,” the finance minister said. He said in the proposed budget he took a policy to impose at least 1.0 per cent tax on all sectors except essential commodities. Speaking on the occasion president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) AKM Salim Osman MP requested the minister to withdraw the provision of re-audit for paying cash incentives against export. President of the Exporters Association of Bangladesh (EAB) Abdus Salam Murshedy urged the minister to reconsider the income tax on small and medium industries, which is creating serious trouble in investing in this sector. Vice-president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Shafiul Islam Mohiuddin also spoke on the occasion. Former vice-president of BGMEA Siddiqur Rahman, leaders from Bangladesh Textile Mills Association (BTMA) and Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) were also present.
