Tragedy won’t affect RMG export: Muhith

Finance Minister Abul Maal Abdul Muhith believes the Savar building collapse killing over 500 people will not hurt readymade garment export.

“This is tragic. Many of our workers have been killed and injured. All of us are grief-struck,” he said on Friday at a programme in the Indian capital New Delhi.

Nine-storey Rana Plaza, housing five readymade garment factories, caved in on Apr 24 with over 3,000 workers, mostly women, at work there. So far, 523 have been confirmed dead. Thousands others have been injured in the worst ever industrial disaster in the world. These factories manufactured clothing for renowned European and American brands.

Muhith said steps were being taken against those responsible for the catastrophe.

“We have rescued many alive and our Prime Minister has spoken about steps necessary to avert recurrence of such disasters. I hope the foreign buyers have realised it,” he said.

The accident has prompted widespread calls for improving safety in the sector. The European Union has already threatened to reconsider Bangladesh’s duty-free access to the market in the continent. Several US lawmakers also urged its government to reconsider its GSP agreement with Bangladesh.

“I don’t think they (foreign buyers) will buy products from other countries. There will be no negative impact on the export of our readymade garment products,” Muhith hoped.

Bangladesh is the second largest exporter of readymade garments after China. Cheap labour has made it nation an attractive destination for famous retailers. The sector contributes up to 80 percent to the nation’s export income.

The $20 billion sector has been plagued by accidents. In November last year a devastating fire at Tazreen Fashions Limited had killed over 110 workers. The accident followed promises to improve working conditions and heightening safety standards at factories but little has been done.

In 2005, the collapse of another building housing a factory near the capital had killed over 70 people.

However, the recent building collapse brought the safety issues in the limelight. British retailer Primark on Monday said it would compensate Savar victims. A spokesman for the company said it has also partnered with a local aid group to dole out emergency food to families.

Other companies like JC Penney, Benetton, and Sears -- all of which source clothes from Bangladesh -- have reaffirmed their support for worker safety and monitoring conditions in the country.

The Walt Disney Company has stopped production of branded merchandise in Bangladesh, in the wake of a series of factory disasters that reflect poorly on workplace safety, according to media reports.

Muhith was speaking at a programme organised by India’s apex businesses body, Confederation of Indian Industries (CII). It was held in honour of a Bangladesh delegation attending the 46th annual programme of the Asian Development Bank.