Clothing Industry: Ethical and Sustainable Fashion

Lord Sugar Excerpts

Thursday 3rd March 2011 Lords Chamber

[Lord Sugar]

My Lords, I, too, am grateful to the noble Baroness, Lady Young, for bringing this debate to the House, but I will quickly follow that with an apology. I have perhaps not interpreted the topic in exactly the way she wanted it to be debated today. Many of the speakers so far have followed the course of ethics, child labour and all that type of stuff, which of course are serious issues. I, however, have picked the fashion side of the question, to try to address something more positive and to see how we can move forward in this country in trying to promote some resurgence in that industry.

I would add that child labour is not new. As a point of comfort, I would say that most of the retailers in this country are now fully aware that they should not support suppliers of anything, be it textiles or electronic goods, if it is produced in a factory that employs child labour. I know that in my own factories and with subcontractors abroad, to be perfectly blunt and frank about it, this was something that we never considered; we just asked the factory to make stuff for us, and it was only when the issue was brought to our attention that we sent our own inspectors there to ensure that they were compliant and did not use child labour. I feel that most sensible companies in this country comply with that, so personally I am not too bothered any more.

I shall now get on to something that might bore your Lordships a little, because it is off the noble Baroness’s topic. It goes like this. I was brought up in Hackney, an area that was a hive of activity for the garment industry. Indeed, my father, mother and siblings all worked in garment factories. My father was a tailor and my mother worked as something called a felling hand, which might mean something to your Lordships, while my elder brother and sisters were machinists. These types of jobs supported many families in the East End of London back in the 1950s and 1960s but, sadly, we have seen the complete migration of the textile industry to areas such as the Far East and other continents.

Over the years, the technology required to produce various fabrics has greatly advanced, allowing flexibility and speedy delivery for garment manufacturers. Regretfully, those responsible for the production of raw materials seem to have focused on the low labour-cost territories of the world. I assume that the sensible fabric manufacturers do not use child labour and do not exploit slavery or all of that stuff.

The retail trade as we know it today seems to rely solely on cheap imports. Compared with the past, when a young woman’s decision to buy a dress took perhaps a couple of weeks to build up to, bearing in mind the large financial commitment, by today’s standards the price of clothing has tumbled—so much so that a dress that once represented a week’s wages now costs the equivalent of a round of drinks on a Saturday night. Because of that, demand has gone up tremendously, which in turn has created an appetite for more and more designs, so there is now a continuous flow of new products through the stores. I believe this has created, in effect, a kind of “buy weekly” mentality whereby the old traditional autumn, winter and spring collections seem to have gone by the wayside, particularly with the low-cost stuff.

As a result, it is fair to say that we have lost the manufacturing industry for high-volume production in this country. We seriously need to recognise this fact. What can we do to re-engage in that very lucrative market? I believe that the secret lies with encouraging young people who are fashion-orientated to be trained so that they are allowed to express their artistic talent in a way that translates into locally produced finished product.

The noble Baroness, Lady Young, referred to Sir Philip Green. I think the point being made was that his report emphasised pushing prices down, which perhaps implies that we would be going to low-cost manufacturing areas. On the other side of the coin—this is similar to the involvement of the noble Baroness, Lady Young, with her colleges—Sir Philip Green founded his fashion retail academy in 2006. That currently houses 550 students, and while he has done a tremendous job in achieving some results, such as passing 65 per cent of his students through to full-time work placements, most of those places are on the retail side or in the buying department. A very small proportion has gone into actual manufacturing.

I therefore suggest that the Government start to fund what I would call incubator factories. There are so many empty buildings and premises in this country. The Government could assist in kitting out those factories with a central core of machinery and facilities so that around the periphery of the factory floor there could be many silos where young designers can come in and do their bit, exploiting the facilities in the factory without having to invest themselves. That facility would also provide employment for those who can gain skills. Not that we are all going to be fashion designers, but there is a need for pattern cutters, for example, and for machinists. Where will they learn how to do that and get their experience? Only on the factory floor, if they are helping in those peripheral factories.

I remind noble Lords that the backbone of the country’s economy is made up of SMEs that employ from two to 10 people. That is an amazing statistic, as I am sure most of us would wrongly assume that the giant companies and the ones that employ most of the working population. Picture a scenario in which a young designer is able to run a workshop—one of those silos that I suggested—and employ, say, five people including assemblers and a salesperson. There is a good market to sell to independent retailers, specialist shops or market stalls, if you like, not to mention online. One does not have to produce in the thousands to start a business. From those small acorns, mighty oak trees might grow.

One such example is a young man I came across a few years ago. He was an alteration hand working in the menswear department of a department store. Encouraged by me, he took the leap to start his own business and make men’s suits. I made sure that I was wearing one of his suits today. With my help and several referrals, he is now in a fair way of business and employs five people.

Realistically, not every young person is blessed with the brain to become an accountant, doctor or lawyer. It is those forgotten young people, who perhaps do not excel academically but do have a talent for fashion and design, who we could offer a future to. This country is known for producing some great fashion designers. The Government need to engage with people like Sir Phillip Green and the noble Baroness, Lady Young, and try to fund these incubator factories that I have suggested.