Speech Hon. Jeetah
Launching of MEXA
(Mauritius Export Association)
16h45 Thursday 17.05.07
Domaine Les Pailles
Mr Francois de Grivel, Chairman of MEXA,
Mrs Danielle Wong, Director of MEXA,
Distinguished Guests,
Ladies and Gentlemen.
Good afternoon to all of you…
And thank you for inviting me to this ceremony.
In fact, it is being organized to mark two events – the renaming of MEPZA. The latter will, from now onwards, be known as the Mauritius Export Association.
The second event pertains to its mission. It has not changed, but it is being widened. Henceforth, MEXA will promote not only the interests of the textile and clothing sector, but the whole export business.
So, we are all gathered here as witnesses to both events. And I thank you for your presence here this afternoon.
Ladies and Gentlemen,
Let me tell you that I am indeed very pleased to be in your midst today.
The big majority of you gathered here are captains of what makes the Mauritian Textile and Clothing sector. This sector has been here for nearly the past four decades. As you know, from a very humble start, it has now grown into a big industry employing nearly 55 000 employees and nearly 100 000 in recent years.
As it grew, and on the other hand, the World Textile and Clothing sector has also witnessed some very unprecedented changes.
First. More and more countries are involved in this business. And cost of production is not the same everywhere.
Second. The new rule of the game is about competition…fierce competition.
Third. With the advent of WTO rules regarding trade and commerce and trade preferences, the world textile scene has changed and is changing.
Fourth. The dismantling of the MFA is a fact. Its consequences on the local Textile and Clothing sector are being deeply felt.
(Emergence of China, Bangladesh, Sri Lanka and others)
Having said this, I must add that, as a citizen who knows and who has been involved with this industry for a decade, I have never been convinced by the expression “sunset industry”, used prior to July 2005, and which was understood to mean that this industry had no future.
Since assuming office, I repeatedly said that, this Government and myself as minister of Industry, firmly believed in this industry and its long term viability and prospects.
You as captains of enterprises within the Textile and Clothing sector have proved that this industry had a future, that this industry had the experience and the courage to fight against all odds to keep it on track and to make sure that it takes its rightful place within the global industry.
Ladies and Gentlemen,
I am not going to dwell long on specific issues, except to say that this Government, my ministry and stakeholders in this industry have all worked hand in hand during the past 22 months and each has played a big role to bring back confidence in the Textile and Clothing sector.
(And confidence is back with vengeance) The results speak for themselves. And I thank you for the good work done and the resilience shown when times were tough.
From a negative growth of -12.3% inherited in July 2005, the industry has registered positive growth rate to the tune of +4.6% in 2006; and this trend will be repeated this year. Between January and March 2007, the sector has registered an average growth rate of 25%. Total output this year is expected to exceed Rs 40 billion.
Investments pledged for this year would be around Rs 5.5 billion.
(I invite all of you to applaud yourself for this achievement and I join you in this).
Each one of you can rest assured that Government is very committed to support you to keep this industry going. My doors, as you know, are always open for any one of you.
Following a meeting I had with your chairman, Mr Francois de Grivel and Mr Walter Simeoni recently, it has been agreed that Mauritius will host next year’s meeting of the global textile industry. This meeting will allow our country to be the Capital of the world’s textile and garment industry and this will add to the visibility of Mauritius on the world textile map.
Ladies and Gentlemen,
Are you satisfied with the output of Rs 40 billion?
I, certainly not.
With commitment, dedication and effort from all of us, I feel that we can achieve a target of Rs 100 Billion output. I am told that at the present trend, this will take 10 years to achieve. As an optimist, and as I know you, I think that this could be achieved well before. It’s our challenge.
The new organization structure of MEXA with sectoral committees on specific sectors such as textile and clothing, jewellery, seafood, logistics, freeport and emerging sectors, is in line with Government’s policy to promote the development of both traditional and emerging sectors. Such an approach, I am convinced, will engender better coordination and enable a better response to the needs of the different sectors.
I congratulate the Chairman and Director of MEXA and all those who have been involved in shaping this project.
But, and with your permission, I am going to make a strong appeal to all stakeholders – both private sector organizations and ministries/departments. To succeed, we will need to adopt a well coordinated approach. As minister of Industry, I invite all parties to make sure that we develop a structured institutional platform that will serve as basis for a permanent dialogue amongst stakeholders.
Ladies and Gentlemen,
I will now address a few general issues which have attracted large publicity during the past few days.
To build on our existing achievements, we should stay united, we should stay focused, and not lose our time and energy in unnecessary gossips.
Since July 2005, I have been meeting with lots of industrialists and entrepreneurs, all from the private sector. They are respected people, and they know this country very well; they also know how to act and do business here. Right now, they are doing very well and with the implementation of new projects, they are going to participate in wealth and job creation.
To my knowledge, therefore, there is no war between the private sector and Government. Both have at heart the well being of this country and its population.
What Government is doing since July 2005? Government is doing everything, and is creating the right environment, to promote economic growth. In the decision making process, we cannot allow ourselves not to take into account the social aspects of things. We are committed to strike the right balance between economic imperatives and social needs. You would agree, it’s a difficult exercice.
Ladies and Gentlemen,
I am not surprised to note some isolated voices who pretend to represent the private sector but in reality they do not.
They state there is no dialogue.
But right now, there are consultations between the State and the private sector on a number of issues. Right now, there are consultations involving the private sector, Government and Unions. This dialogue and consultations will continue and even intensify because this Government believes in the politics of dialogue.
However, what no self respected man can accept is that someone, who is supposedly a professional, should be so self indulgent as to permit himself to throw tantrums in public and in so doing trying to destroy what we have so patiently build over the years.
I must emphasize that the language and tone used – which we thought we had put behind us a long time ago - have shocked. Should such self righteous voices represent the private sector?
Anyway, we have no lessons to learn from these isolated voices. And in their capacity as representatives of a respected organization, and if they cannot stand the heat, they know what is left for them to do – get out of the kitchen.
Ladies and Gentlemen,
In 2005, FDI stood at Rs 2.8 billion. Last year, under the present regime, it has moved to Rs 6.4 billion. For this year, it is expected to reach Rs 10 billion.
Last year’s budgetary measures have been applauded, not least by the private sector.
The enactment of the Business Facilitation Act and measures taken to facilitate entry and stay of investors in Mauritius have been matters for satisfaction.
The Textile and Clothing sector, as I said, has registered positive growth rate in 2006 and same will be the case this year. Investments pledged are Rs 5.5 for this year.
The tourism industry is doing well and profits of private companies have grown beyond expectations.
The Banks are registering record profits.
IRS projects are blooming all over the island.
How can one reconcile these facts to wild statements made?
How can one say that Government is the problem, and in the same sentence, adds that Government is the solution?
Ladies and Gentlemen,
This Government means business. And you will understand that this Government of the people will act boldly, fearlessly and fiercely to allow the interest of the country to prevail at all times.
Ladies and Gentlemen,
To each one of you gathered here I say – my doors are open. Government and my ministry are prepared and ready to support you in your business venture. I wish you well.
On this note, I now declare official the launching of the Mauritius Export Association and I wish this organization long life and all the success it deserves.
Thank you for your kind attention.