Some 124 garment factories are struggling to get their production back to full swing following relocation due to a dearth of gas supply, as the government is not approving transfer of gas lines or new connections.The factories have lodged complaints with Bangladesh Garment Manufacturers and Exporters Association.Of the total, 60 factories complained that the government is not allowing the transfer of their old gas lines to their new units, BGMEA President Siddiqur Rahman said at a press conference at the association’s office in Dhaka.Another 64 complained that they are not getting new gas connections for two to three years now.“Those factory owners are now running their units with diesel generators, which is very expensive,” Rahman said, adding that many others are in the same boat as these factories but are yet to file complaints.Following the Rana Plaza collapse in April 2013, many owners have shifted their units to nearby Gazipur, Ashulia, Kashimpur, Kunabari, Shafipur, Chandana and Salna areas, but they are not getting the gas connections yet.Some 73 factories complained that they are suffering from the problem of low gas pressure.Rahman is also said the BGMEA will most definitely be able to complete the preparation of the database of workers and factories by the end of June as the response from the factory owners has been good.So far, 1,450 factories have provided information to the BGMEA.“If any factory wants to take any service from the BGMEA, it will have to provide its information for the database. So, I hope every owner would help to complete the preparation of the database within the scheduled time.”The database is required for the garment sector for many reasons. In the absence of a database, if any industrial accident takes place in the sector it is difficult to know the exact number of the victims and their addresses.The stricken garment workers might not get money from the workers’ welfare fund that has been made by the labour and employment ministry. Every exporter will contribute to this fund at 0.03 percent of his/her total volume of export earnings in a year to the workers’ welfare fund. The government is expecting Tk 80 crore in the first year.This money would be used for stipend for workers’ children, treatment for workers and for insurance purpose.Rahman went on to demand continuation of the 10 percent corporate tax rate for the garment sector for another five years from the upcoming fiscal year.“We need the government’s policy support for continuation of the export growth of the sector and for creating of more jobs. The garment sector can hardly sustain if the corporate tax is fixed at 35 percent.”Rahman cited the case of Vietnam, Bangladesh’s main competitor in global apparel trade, whose exports are fast rising thanks in part to government support.Vietnam’s garment exports receipts, which stood at $10.83 billion in 2010, hit $23 billion in 2015.The BGMEA chief also said the apparel prices have slumped 40 percent over the last 15 years, a development that has hit the country’s garment sector as well.Moreover, the sector has been facing challenges due to appreciation of the local currency against major currencies like the US dollar and Euro.Over the last four years, the taka appreciated 7.66 percent against the dollar. As a result, the exporters are receiving less.Four years ago, a US dollar was exchanged at Tk 84; now, it is going at Tk 78, Rahman said.On the other hand, the currencies of Bangladesh’s competitors in global apparel trade depreciated against the dollar.
