UK Clothing Sector: Safety

Baroness McIntosh of Hudnall Excerpts

Monday 13th May 2013 Lords Chamber

[Viscount Younger of Leckie]

My noble friend makes a very important point. We welcome the statement by the Bangladeshi Foreign Secretary that Rana Plaza is “a turning point in Bangladesh’s history”. I know that the Bangladeshi Government have taken this dreadful tragedy extremely seriously. I understand that they have shut down 18 factories, some of which have reopened on the basis of rigorous safety certificates.

[Baroness McIntosh of Hudnall]

Does the Minister not agree that although corporate social responsibility is clearly important in this matter, what is really at stake is a business model for many of these retailers which depends upon being able to sell clothes at prices that are, frankly, ridiculously low? I am just as guilty as most other people of taking advantage of that opportunity when I see it, but I would really rather not have it before me. Will the Minister say in what way the Government can help to educate the market in this country to understand the price of low prices?

[Viscount Younger of Leckie]

I understand that even if wages were doubled in Bangladesh—I know that we are talking about a health and safety issue—it would put only 2p on the price of a T-shirt, so there are some real issues to tackle. As I mentioned earlier, this is a cross-departmental issue. For example, DfID is supporting the ethical trading initiative which is a leading alliance of companies, trade unions and NGOs, and the Government very much support it. Secondly, DfID, with government support, is supporting the Responsible and Accountable Garment Sector challenge fund, known as RAGS, so a number of initiatives are being pushed by the Government, and we continue to put the necessary pressure on the retail organisations.