Economic, Industry and Regional Development Minister Jim Anderton has welcomed the first in-depth study of New Zealand's designer fashion industry.

By Stephen AdamsEconomic, Industry and Regional Development Minister Jim Anderton has welcomed the first in-depth study of New Zealand's designer fashion industry.

By Stephen AdamsCommissioned by Industry New Zealand and written by veteran fashion industry administrator and commentator Paul Blomfield, 'The Designer Fashion Industry in New Zealand' has been applauded by Anderton as 'an excellent starting point for getting more New Zealand fashion on catwalks and in fashion stores around the world'.

The report, based on a survey of New Zealand's designer fashion businesses, identified a number of industry-wide problems, particularly production and skill shortages. Among its findings is the estimation that the New Zealand designer fashion industry could be worth $160 million a year (based on gross revenues at wholesale prices) and approximately $40.6 million is exported to our largest market, Australia. Designers interviewed for the study reported sales growth of around 10 per cent during the last year.

Other findings include:

• The designer fashion study found the industry was dominated by small companies with 72 per cent of the 119 companies having turnover of less than $2 million in the last year, and 69% employed fewer than 10 full-time staff.
• 14% of the total workforce is primarily involved in design.
• Designer fashion is a young industry: only 13% of businesses were established before 1980.

The recommendations of the study include:

• The establishment of an industry development organisation to promote networking, manage databases and communication within the industry and to facilitate specialist designer and production mentors;
• A greater range of skills and more contact time in fashion design courses; and
• The development of export and market information.

One of the recommendations of the report has already been implemented: Fashion Industry New Zealand is the newly created industry association for the fashion industry, with Blomfield himself stepping in as acting interim chief executive until funding is finalised. FINZ will act as a centralised database of contacts and other fashion business information. "I get calls every day from people in the industry, or people about to get into it" says Blomfield, previously CEO of the Apparel & Textile Federations. "They want to know how to get hold of a designer, how to get a particular textile, advice on putting on a fashion show - the new association will provide all of that information in a one-stop-shop."

Meanwhile, former North and South journalist and newly elected ACT list MP Deborah Coddington has attacked the approach Anderton is taking. She says the fashion industry is being crippled by government policies that 'pick winners', mainly high profile designers, at the expense of companies that provide services to the industry, such as machinists.

"News that the fashion industry is being held back by a lack of trained machinists should be no surprise to this Government" says Coddington. "Two Government policies are responsible: the freeze on new private training establishments is cheating many young people out of the chance to get an appropriate qualification, and by `picking winners', Labour and Jim Anderton have falsely accelerated the development of some sectors at the expense of others. They have pumped plaudits and funding into the glamorous fashion sector, but forgotten completely about the industries that keep fashion going".

Coddington equates Anderton's approach with the Muldoonist-style protectionist policies of the 1970's. "Muldoon favoured farmers and owners of television assembly plants" she says. "Anderton snuggles up to the rag trade. The best way for Government to help business is to reduce regulatory interference, lower taxes and promote a market economy."
Coddington's comments have drawn the ire Blomfield, who accuses the MP of showing 'a total lack of knowledge of the industry, its current projects and recent history'.

"The myths about 'pumped funding' have long been a frustration for me" says Blomfield in an open letter to the MP on his website . "There have only been small contributions of money for the entire fashion industry over the past five or six years, mainly from Trade New Zealand for export projects such as Australian Fashion Week. The Government is now supporting the L'Oreal New Zealand Fashion Week, but again to a relatively small amount. The Industry receives less funding, for example, than the smaller wine sector."

As for Coddington's claims that designers are being favoured at the expense of compamies that service the fashion industry, Blomfield asserts the MP is 'putting the cart before the horse'. "The clothing industry we had in the past existed in a protected environment" he says. "That industry declined because of the free market policies of the past two decades. "Fashion" is what is creating consumer demand and is turning around manufacturing companies that were otherwise declining".

As far as Blomfield is concerned, the free market policies that Coddington is promoting seriously damaged the fashion industry in the past, and her attacks on Anderton's efforts are unjustified. "The problem is that there was nothing strategic about the free market thinking '80s and '90s. Successive Governments just took the tariffs off the apparel sector and said 'sink or swim'. The fact that the industry was able to swim still surprises the Lockwood Smiths, Luxtons and Prebbles".

In regards Coddington's suggestion that the Government 'should dump the moratorium crippling the private training establishment sector', Blomfield says the fashion industry is the first to say that there needs to be reform of the education sector. "(The current education system) turns out too many designers and not enough skilled people" he says. But - students want to be designers, and where there is demand, the education providers are providing the training. Government regulation to dissuade students from learning to design clothing would be opposite to ACT policy".

Blomfield goes on to say that the private training sector isn't the sole answer to the fashion industry's education and training problems. "In the past it was the industry, not any third party that was the largest trainer of skills" he says. "Most machinists and cutters were trained on the job in factories such as Bendon, Expozay and Holeproof. These companies no longer manufacture in this country".

To download the study, click here.