Plenary, 31 Jan 2001

Meeting date: Wednesday, January 31, 2001

Official Report 364KB pdf

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Borders Textiles Industry

We come now to the final item of business, which is the members' business debate on motion S1M-1579, in the name of Ian Jenkins, on the Borders textiles industry. I invite those who wish to take part in this debate to press their request-to-speak buttons now so that I can see how many would like to contribute. I ask those who are not staying for the members' debate to leave quietly, please.

Motion debated,

That the Parliament notes with regret the loss of jobs in the textiles industry at the Murray Allan mill in Innerleithen; supports the efforts of local agencies working together to assist employees who have lost their jobs, and urges the Scottish Executive to report on progress to deliver aid to the sector and to resolve the threat posed to the industry by the ongoing trade dispute between Europe and the USA so that textiles manufacturing can look forward to a permanent place in the Borders economy.

I am pleased to have secured this debate this evening, although I am sad that it has been occasioned by bad news in my constituency. I am grateful to members who have stayed for the debate. I know that members from all parties will recognise and understand the resentment and dismay that is felt by the Murray Allan of Innerleithen Ltd work force at the sudden realisation that in spite of consistently producing some of the highest-quality cashmere garments in the world, 43 of their number are to lose their jobs in Innerleithen. A limited number will have a chance to transfer to work in Hawick, more than 20 miles away.

When I spoke to members of the work force recently, their distress was clear. Those men and women took pride in their work and had a sense of loyalty to that local firm, for which some had worked for almost 30 years. Euan Robson and I, together with our Westminster colleague Michael Moore, secured a meeting with the management. The need for redundancies and restructuring was attributed to difficult trading conditions and earlier weaknesses in management, and the work force itself was not criticised.

However, in such sad circumstances, the situation could and would have been handled better if workers' representatives had been more closely consulted before the redundancies were announced. As in so many such cases, the shop-floor workers were left with a bitter, empty feeling of resignation and a sense that they could not influence hugely important decisions that affected their lives.

Innerleithen is a small community with close family and community ties and a strong sense of identity that is exemplified in the strength of the local community council and the community spirit that is shown at local events such as St Ronan's games week, which is a summer festival. The local economy is heavily dependent—even overly dependent—on textiles. Further investment in and diversification of the employment base are needed. Travelling to jobs elsewhere, in places such as Hawick, also involves problems. The public transport system is limited and does not fit easily into patterns of shift work. In a low-wage economy, such travel to jobs can be prohibitively expensive.

Sadly, politicians cannot bring the jobs back. Instead, we must urgently help those who are to be made redundant and do what can be done to preserve the remaining jobs. My motion commends the work that the local agencies are doing in putting together a redundancy support team. I am happy to say that that team will have a presence in the town from tomorrow and for the rest of February. Scottish Enterprise Borders and the Scottish Borders Council, together with the Benefits Agency, the Employment Service and other agencies such as the citizens advice bureau and the Borders College, will be available to give advice on financial and housing issues, offer schemes that will help with training for employment and give opportunities to seek employment that also gives financial assistance to employers who take on workers who were made redundant.

It is important that Murray Allan co-operates fully with the redundancy support team, as I and my colleagues urged it to when we met its representatives last week. I understand that such an agreement has been reached. The support team offers a vital service to workers who have been made redundant. It is good that the various agencies have responded quickly and effectively to work together to do whatever can be done to help.

The Deputy Minister for Enterprise and Lifelong Learning and Gaelic will recall that we recently debated the employment situation in the Borders. We recognised that good things were happening in the Borders economy, but it was and remains clear that the recovery is fragile. The redundancies reinforce the message that everything that is possible must be done to bring investment to the area and to improve and diversify the skills base of the work force. We must continue to support the indigenous textile industry and remember that about 65 people in Innerleithen still work in Murray Allan.

The Borders knitwear industry is changing, modernising and restructuring. That process can be painful. In recent years, job losses on a scale for which no one would have wished have taken place. If we are honest, we must say that other redundancies may come in time.

Nevertheless, the textile sector remains hugely important to the Borders economy. It employs almost 4,000 people and accounts for about 50 per cent of employment in the manufacturing sector of the local economy. The value of cashmere exports from the Borders has been estimated at about £100 million a year. The industry is one of high quality, considerable achievement and great potential. A brochure was produced some time ago about the range, variety, class and quality of the Scottish Borders knitwear industry, and it is an impressive document.

Cashmere from the Scottish Borders is recognised as the finest in the world. It has been and continues to be worn by the rich and famous. A cashmere sweater is one of the classic objects of desire that people aspire to own. However, the industry is not content to rest on its laurels. It is making strenuous efforts to employ and work with top designers.

Great strides have been made in promoting our high-quality knitwear throughout the world. In the past year or so, the Scottish textile forum has been formed. There is also the creation of the industry body, the Scottish Cashmere Club. During London fashion week in September, the club's "Cashmere Made in Scotland" initiative was a successful attempt to raise the profile of the industry at the highest level.

Those schemes were supported locally by Scottish Enterprise Borders, which is involved in an important scheme behind the label. It seeks to demonstrate to young people that there is an exciting and sustainable future in the textiles industry. Together with the arrival in the Borders of new opportunities in European funding, that represents the kind of initiative for which we seek further and continuing Executive support.

Nevertheless, it is widely recognised that the Scottish textiles industry is facing difficult trading conditions. The on-going trade dispute between Europe and America could lead to the erection of trade barriers against cashmere. I would be grateful if the minister would assure me that the Scottish Executive will keep in close contact with UK ministers and officials at the Department of Trade and Industry. My colleague Michael Moore has been working closely with Brian Wilson and others in recent months to ensure that European ministers and officials are made fully aware of the serious consequences for our industry if that dispute is not resolved as we would wish.

Further trading problems face the industry in relation to the multi-fibre agreement and the changing trading relationships between the USA and China. Faced with such problems, the industry needs to know that it has the full backing and support of the Scottish Executive and the UK Government.

Will the member give way?

I am nearly finished.

The motion seeks the minister's assurances that the Executive will continue to liaise with Westminster colleagues, that it will give its backing to initiatives designed to secure the industry's future and that it will help to create a climate that is favourable to investment from home and abroad.

When we talk about world trade organisations, multi-fibre agreements and international banana wars, it can be difficult to remember that they are not vague, abstract issues of macroeconomics. Decisions taken at those global levels may end up causing workers in Innerleithen and other Borders communities to be cast out of work through no fault of their own.

Will the member give way?

I am just winding up.

I ask for the minister's support and look forward to welcoming Ms Alexander to the Borders in February to see things for herself.

I should start by declaring an interest of sorts, in that my son works in the cashmere industry. If for no other reason than that, I am concerned about its future.

This is an important debate, and I congratulate Ian Jenkins not only on raising it, but on managing to cope with his pager in the middle of his speech in such a way that we hardly noticed it going off. I assume that it was some late briefing—I hope that it was good news.

To pick up Ian Jenkins's point, the textiles industry is still important for the Borders and for Scotland. I did some digging about in preparation for the debate, and the most recent figures that I could find were from 1997—not far back—when about 37,000 people in Scotland were identified as working in textiles. The biggest share—nearly 5,000—was in the Borders. It is a sign of the difficulties that we have had in recent years that, as Ian Jenkins said, the figure is now less than 4,000. In the area I represent, the South of Scotland, there were an astonishing 3,500 in East Ayrshire in textiles and the same number in South Lanarkshire. There were substantial numbers throughout Scotland—more than 1,000 in each place—in Angus, Clackmannan, Dumfries and Galloway, Dundee, Falkirk, Fife, Glasgow, North Lanarkshire, Renfrewshire and West Lothian. This is still a significant Scottish industry.

The Borders is the flagship for the industry, but it is important for our economy as a whole. We have to take seriously the trends in the industry and try to reflect on what might be done to bolster it, to shore it up, to preserve it and, where it can be done, to expand it.

Will Murray Tosh give way?

I realise that Mrs Ewing has been desperate to get in, so I shall certainly give way to her.

Mr Tosh missed out Moray, which also has an important cashmere industry. I suggest that there are two aspects of the industry that could clearly be developed. One is tourism: Johnstons of Elgin attracts a lot of tourists. The other is uniforms for public sector workers: public sector organisations should be encouraged to use designers and textile makers in Scotland.

I assure the member for Moray that I would never deliberately ignore Moray. The only reason that I did not list it is that I applied a crude cut-off figure of 1,000 employees and Moray fell below it. It is absolutely true that there are textile workers in every area of Scotland and they are an important part of the economy of every area of Scotland. I accept the point that Margaret Ewing has made.

I want to pick up on some of the points that Ian Jenkins made and to make some fresh points. He said that there are still distinct skills shortages in the Borders, even in areas where there have been job losses. That must be addressed. We must accept that, as the industry changes and the volume manufacturing base diminishes, there still remain important niches, not just in tourism or in the way in which Government deliberately sources products, but in the commercial sector, in technical textiles, in designer wear, in dyeing and finishing and in branded clothing. In any capital-intensive manufacturing and in any high-value niche market, there are opportunities where there is imagination, innovation, training and support. Those are areas in which the Scottish Executive could focus its efforts to great advantage.

In the responses that I have heard, I have encountered some concerns about training and about the difficulty of training on the job. I have also heard the concern that, if a firm has to send people away for training, it might lose them. There is a need for more focused training in more localised areas in some sectors. There are also concerns about marketing. People have expressed their view that the local enterprise company system disaggregates the marketing budget and the marketing focus and that sometimes we do not play the Scottish brand card very well. We need a more focused approach to marketing—that is something that the Executive might usefully examine.

I see no point in repeating what Ian Jenkins said about duties, but I have one comment to make on the issue. With the arrival of the new Administration in the United States, which may not have the same rapport with the current British Government as the previous Administration did, it is all the more important that the current British Government works to establish those links and tries to ensure that we use whatever political clout we have to protect our textiles industry from the threat of carousel duties.

This country accepts the United States' case. This country is a lever within the European Union for trying to resolve those matters properly and accepting the Americans' justified complaints. If there are to be retaliatory duties—which I do not favour or support, but which I understand—surely our allies across the Atlantic must be careful to apply those retaliatory duties on those people who are not willing to compromise or to find solutions.

There are many aspects to this issue. I have made some specific points that I hope the Deputy Minister for Enterprise and Lifelong Learning and Gaelic will address. We must tackle what is an important issue for the whole of Scotland, specifically for the Scottish Borders and, most particularly in the current international climate, for the cashmere industry.

As is the custom, I congratulate Ian Jenkins on securing this debate—and so soon after Euan Robson's debate on the Scottish Borders labour force. It truly pays to be a Liberal Democrat here at times. I have had only one members' business debate, and that was almost a year ago. Ian knows that I lodged an earlier motion on this topic, but I have to say that, true to form, it was couched in less comfortable terms with regard to Scottish Enterprise and the coalition. But then that is what the Opposition is for: to expose the spin and the shine and reveal what is often the very unshiny truth.

I endorse everything that Ian Jenkins said about the workers, whom I also met. It is very hard meeting people who find their lives upside down and in turmoil. They were dismayed and hurt, but they were also disgusted. Five months previously, they had applauded Columba Reid of Clan Douglas Ltd when he told them how wonderful they were. He knew even then that he would be making some of them redundant.

At First Minister's question time on 18 January, Ian Jenkins got this response from the First Minister regarding the 40-plus Murray Allan redundancies:

"The Executive has made a commitment to use the new facilities that are available through PACE, the partnership action for continuing employment, to ensure that the skills training, specific counselling and every assistance that may be required are given."—[Official Report, 18 January 2001; Vol 10, c 429].

He did not use that awkward four-letter word: jobs. Counselling and retraining are not good enough.

In Euan Robson's members' business debate, he quoted the new ways strategy as follows:

"Future success depends upon the willingness and ability of people in the Scottish Borders to compete. Skills, know-how and creativity will help promote individual and business success."—[Official Report, 10 January 2001; Vol 10, c 53].

No doubt they will, but what about jobs rather than fine words?

Let us be clear about the prospects for the textile industry in the Borders and elsewhere. The prospect for that industry is not, as Tony Taylor of Scottish Enterprise Borders said it was on 10 January 2001, that:

"the textile industry in Scotland is in better shape than it has been for a long time".

Within days, those Innerleithen redundancies that he must have known were in the pipeline were announced.

When Clan Douglas announced just two years before that it had bought Mansfield Mills to expand, that was heralded as a job expansion and good news for the Borders economy. In reality, it was the start of redundancy notices for 40 or more Innerleithen workers. Since new Labour came to power in Scotland, 5,000 textile jobs have gone. According to the Executive's figures, between 8,000 and 9,000 are predicted to go this decade. Yet, of the £10 million UK rescue package announced in June 2000—I am glad that Wendy Alexander is here because I have not had an answer to my question about this—I understand that not a penny has been spent. I will give way to the minister if she can give me an answer.

I am happy to intervene. I spent much of the morning and some of the afternoon at the Scottish textile forum, where it was made clear that regional selective assistance awards had amounted to £300,000, that Scottish Enterprise and the Executive had made commitments of £700,000 and that we had contributed in excess of £2 million in Scotland to initiatives comparable to the Department of Trade and Industry's £10 million in England to people such as Bairdwear and Daks, where we face an unfortunate situation. In total, that comes to in excess of £3 million.

To clarify, will the minister tell me—in one word, please—the exact figure for the amount of that £10 million UK rescue package that has come to Scotland?

The member will allow me to clarify—I forgot about the £1.2 million that has come to Scotland as part of that package through the Faraday award and Heriot-Watt University.

At last I have an answer. I was expecting one, because I knew—

The answer is £1.2 million.

I have been told about the £1.2 million only now. I could not withdraw the question until I had an answer. Now that I have been told, I have an answer. I lodged that question several times. The most recent answer I got was this week, when the minister's response was "I will reply to the member as soon as possible." I am not surprised that this debate has been chosen as the moment for me at last to get the answer.

Since I lodged my question, the Scottish textile forum has met three times. I knew that it was meeting today; I expected that. The minutes of the forum include a very important point, to which the Minister for Enterprise and Lifelong Learning will perhaps be able to respond. It is still not known whether the bond scheme, which was introduced last year, could be reintroduced in the event of a cashmere crisis—a banana war, to use shorthand. I took that from the forum's minutes. I appreciate that they are truncated, but the most recent information that I have from the most recent minutes from September is that people do not know the answer.

Sadly, I cannot give an answer. I had to leave the meeting before the discussion was completed, because members from the lady's party were causing such trouble about my not being here this afternoon while I dealt with the textiles crisis.

The minister's answer to my first question was satisfactory, but that one is not. It is three months since the textile forum raised the issue and people still do not know whether the bond scheme can be operated.

Finally, I come to Helen Liddell, who made a most interesting comment in her new role as Secretary of State for Scotland. She listed, among the industries of yesteryear, the coal industry, engineering and textiles. Having placed those industries on the back burner, she trumpeted the knowledge economy as the future economy. I have knowledge, but it is of gesture politics, of which we have far too much in this chamber. Words come cheap, but it seems that real investment in jobs in the Borders is too expensive.

I am sorry to get aggressive in what is supposed to be a cosy members' business debate, but this is far too serious. It is time that the Scottish textiles industry was given proper, serious investment so that Helen Liddell will not again stand in Westminster and consign the textiles industry to yesteryear.

I echo the congratulations that have been offered from the rest of the chamber to my colleague, Ian Jenkins, on obtaining this debate. I know of his commitment over many months to improving the Borders economy; it is evidenced by his patient and conscientious work, which is often done out of the public eye.

As I have said previously, Borders agencies work in partnership, under the new ways banner, to deliver the changes that are needed in the Borders economy. There have been major successes in recent months. The important problem that we needed to address in 1998 and 1999 was the broadening of the base of the Borders economy to try to ensure that different types of jobs were available and that new firms developed throughout the region.

We also needed to ensure that there was appropriate support for the electronics industry and the textiles industry, which—as Murray Tosh mentioned—is especially important in the Borders because it provides up to 4,000 jobs. A lot of effort has been put in, through direct support and marketing, to develop the premier product of the Scottish Borders, which is cashmere.

I have every confidence in Scottish Enterprise Borders; in its leadership and in the team of officials who work hard to deliver those changes in partnership with several other Borders organisations, such as the area tourist board, Borders College and Scottish Borders Council. Working together has helped us to present a united case to whatever agency of Government we need to present it to. We have had to do that in the face of the threat of the carousel tariff—the so-called banana war.

In response to Murray Tosh, efforts are being made to make contact with the new American Administration and the new United States trade representative to ensure that the case for cashmere is made clearly. It is correct, as Murray Tosh said, that the British Government is no longer standing in the way of a settlement. The Europeans must take action to deliver on a settlement that will secure the future of the industry.

I will mention Murray Allan and its sister company, Clan Douglas, in Hawick. Clan Douglas was in considerable difficulties a few years ago. To its great credit the management there—including Columba Reid—has turned that business around from a fairly desperate position. It is now profitable and is securing a number of jobs in Hawick. Those jobs are welcome. I have to say that the investment by Toyo Boshi, the Japanese parent company, is especially welcome. Somebody ought to offer some thanks to that company for putting its money and its confidence behind Clan Douglas and Murray Allan.

There will be changes from time to time in any economy; businesses will come and go. Bad decisions will be taken and there will be poor management and better management. External events will create difficulties. There have been well known difficulties at Murray Allan and it is especially regrettable that jobs will be lost there. Some jobs will be available in Hawick and perhaps in years to come the finishing department, which will remain at Innerleithen, will grow so that there will be an opportunity for finishing and design to expand in the way that one hopes for.

The Executive can help in some important ways. As I said in a debate a fortnight ago, we have the curiosity of some forthcoming skills shortages. I went into considerable detail about that and was grateful to ministers for listening carefully and taking up several of the points that were made.

The Executive can assist with training and with regional selective assistance support. I ask the minister to examine carefully all the possibilities on that. It is especially important to retain a critical mass for the textiles industry in the Borders, so that there is a reservoir of talent and experience there and so that we can ensure, through training, that that continues in the years to come.

There will be times in the Borders economy—indeed, in any economy—when trading conditions will mean that companies will come and companies will go. Although I am sure that more companies will succeed in the Borders, some will not do so well and jobs will be shed from time to time. However, it is incumbent on Government to ensure the best possible atmosphere and trading conditions.

I must conclude on a slightly sour note. It is not helpful for members who have an interest in the south of Scotland and the Borders to undermine the local community's confidence in organisations. For example, the member who lodged the member's business motion that was not chosen today mentioned a closure at Murray Allan. There was no such closure.

Indeed, in press releases, she talked about cushy deals. Anyone who is aware of the situation will know that that the reverse was the case. Furthermore, it is unhelpful to suggest that foreign investors who bring their capital, time and effort are not welcome.

There is no point in members undermining local confidence in the way that it has been undermined in the past few weeks.

Will the member give way?

The member is obviously not giving way.

I intend to speak relatively briefly. I congratulate Ian Jenkins on securing the debate for two reasons. First, it is important to reinforce the fact that relatively small headline numbers of redundancies—50 or 60 people being laid off in a community in rural Scotland—can be as significant as thousands of jobs being lost in urban areas. We must treat such job losses with the same seriousness as we treat national headline-grabbing job losses, such as those at the Vauxhall plant south of the border.

Secondly, we must have a debate about the textiles industry which, as my colleague Murray Tosh pointed out, is important throughout Scotland, not only in the Borders. For too long, there has been the perception that support for the industry has meant gradually closing it down. That is not the case; throughout Scotland, many bright and innovative things are being done. In the Borders, Dumfries and Galloway and other places, people have started to address issues such as niche markets and have tried to change some traditional practices. For example, people used to think that it was enough to produce a high-quality garment. However, in the modern world, that is not enough; the garment must be something that the customer wants, and we must accept that the customer now has different desires.

I was impressed by Reid and Taylor in Langholm, which is well known for producing traditional yarns and some of the best suit material in Scotland. However, that company is now using non-traditional materials and is even looking into producing clothes that contain holographic images. Perhaps Ms Alexander might consider the hologram suit for team McLeish; it might be slightly less expensive than the hologram building.

Reid and Taylor embodies the general concept of an innovative and different company that has found its market; indeed, that company has found markets in the highest fashion houses in Italy. That can only be commended. However, we should also commend Dumfries and Galloway Council, which has recently invested substantially in Langholm Dyeing, the only dyeing facility in Scotland. That was not a fashionable thing to do. To follow Christine Grahame's point, the facility did not represent the new economy. Dyeing is one of the most basic skills that is required by the textiles industry. However, that council had the courage to make that investment. The minister should send out the message to Scottish Enterprise and the various other bodies that it is pleased that they are investing in textiles and our traditional industries as well as in the important new economy.

The textiles industry is important and it has a future—it is not on the way out. There are important niche markets, and throughout Scotland we can make the industry a real success story.

I thank Ian Jenkins for securing this debate on the efforts to retain textiles manufacturing in the Borders. It is clear that other members also care deeply about this topic and it goes without saying that the Executive is deeply committed to the industry. I tender apologies on behalf of my colleague Wendy Alexander, who had to leave the debate to attend a meeting of the Scottish Parliament cross-party group on oil and gas. In the seven minutes that I am allowed, I shall try to address the issues that have been raised.

On trade barriers, I assure Mr Jenkins that I am aware of the co-operation that existed between Michael Moore MP and the former Minister of State for the Scotland Office, Brian Wilson. I assure him further that that co-operation on trade barriers will continue with the new Minister of State for the Scotland Office, Mr George Foulkes. When I meet Mr Foulkes on Monday morning, the textiles industry will be one of the issues that we will discuss.

Mrs Ewing raised two interesting points, the first of which I whole-heartedly agree with—the importance of tourism and the important part in that industry that the textiles industry can play. Her point about public sector workers being encouraged to use fabric that is designed and produced in Scotland is interesting and may be considered in another context.

I say to Christine Grahame that this is the first time that I have heard a minister criticised for being present at a debate and giving full answers to the questions that have been raised.

The trigger for this debate was the developments at Murray Allan. Like other members, I very much regret the fact that the company has had to announce that there will be job losses. I understand that the company believes that restructuring was necessary to create a more efficient organisation. Its intention is for that restructuring to ensure that the company is better equipped to serve its customers worldwide and to safeguard the remaining jobs in the Borders. As one would expect, Scottish Enterprise Borders is holding regular meetings with the company to offer support to protect the remaining jobs.

More important, those who are likely to be affected by redundancy will be given full support. A local response team, involving relevant public agencies, has been established to help all those who are affected to find new jobs. The team will operate in accordance with the principles of the Scottish Executive's partnership for continuing employment initiative. I understand that the company has pledged to co-operate fully with the PACE team, which will be present in Innerleithen from tomorrow to offer advice and assistance to those who are affected.

The new ways strategy is an excellent example of partnership working and has ensured that a comprehensive range of economic development support is in place for the area—from support for companies' property expansion to the establishment a local labour market intelligence unit.

We recognise that the textiles sector is important and that it is under severe global competitive pressure. Henry McLeish established the Scottish textile forum in June to consider ways of improving public support to the sector. The forum is helping to prioritise support for the industry in consultation with the unions, industry, business organisations and agencies. Earlier today, Wendy Alexander chaired the third meeting of the forum, at which an outline three-year action plan for the sector was agreed. A Scottish textiles website has also been launched today, which will give unparalleled access to what Scottish companies can offer and will provide companies with valuable information on fashion trends. I have a spare copy of the document, which I would be happy to give to Mr Jenkins or other interested members.

Mr Tosh raised a number of points, which I will endeavour to respond to. Scottish Enterprise Borders is now co-ordinating all like activity. At today's textile forum meeting, it was agreed that marketing and brand issues would be a priority for year one of the action plan. I hope that that reassures Mr Tosh. We have also agreed to hold a major seminar on Scottish textiles in late spring, to explore how Scottish textiles companies can better tap in to available public support.

Textiles companies are, however, already benefiting from that support. Wendy Alexander helpfully intervened on Mrs Grahame to highlight exactly where that money is being targeted and who is benefiting. Time does not permit me to cover all the examples, but I will mention a couple. Heriot-Watt University has recently been given a £1.2 million Faraday award to further its excellent work on technical textiles. Although that is a UK project, it is being led by Heriot-Watt University from its Galashiels campus, and so the Borders can expect to benefit handsomely from it. My colleague Wendy Alexander will formally launch the project in Galashiels on 14 February and will hear of the developments in the Borders.

Will the minister take an intervention on another point?

I do not have time to deal with another point. I must make progress.

Two other recent examples of funding that I would like to mention are the £449,000 over two years to support the Cashmere Club and the £10,000 to help companies to attend the London fashion week exhibition. Although large sums of money are not always involved, in many cases such support can make all the difference in achieving new orders. From those few examples, and the one cited by my departed colleague, I hope that it is clear that we are committed to supporting the textiles sector.

As was made clear in yesterday's policy statement for the enterprise networks, we recognise textiles as one of the key sectors that should benefit from continuing support from the Executive and the enterprise networks. That obviously includes doing all that we can to head off the threat to the textiles industry that is posed by the on-going trade dispute between the United States and the European Union—the so-called banana war. The Scottish Executive fully recognises the disproportionate impact that US sanctions on cashmere would have on that key Borders industry. There is a clear need to remove the uncertainty that the dispute has caused. I remind members that lobbying has taken place at most senior level. The First Minister has met some of the key players both in Brussels and in the US. He was able to raise at first hand the Executive's concerns about the damage to Scottish companies and he urged a swift end to the dispute. We will continue to press hard until the threat of damaging sanctions, which has cast a shadow over cashmere for too long, has been lifted.

I am convinced that the local agencies involved and the Executive have risen to the challenges and will continue to work together to secure a future for textiles manufacturing in the Borders and throughout Scotland.

Meeting closed at 17:43.