(DFID) Changing the image of UK fashion: Government launches fund to make fashion industry more ethical

A pioneering initiative to help clothing manufacturers improve working conditions for their producers in developing countries was today launched by Minister for Trade and Development Gareth Thomas.

The RAGS (Responsible and Accountable Garment Sector) fund will make £3.5 million available over three years for bids from companies who want to make their clothing business more ethical and contribute more strongly to development in poor countries.

A Challenge Fund will be set up that invites bids for work that will make a real difference - which might include companies working with unions and others to explore responsible business practices, projects to raise workers' awareness of their rights, and ways of generating more viable and decent jobs in garment making in poorer areas.

The fund will support and encourage "ethical pioneers" in the fashion industry - people and companies who have innovative ideas with the potential to drive change in the garment sector.

Gareth Thomas launched RAGS with a group of models wearing ethical fashion items as part of the first ever World Trade Week UK; an event to highlight the importance of trade as a tool for recovery from the global economic downturn.

Speaking at the launch today, Trade and Development Minister Gareth Thomas said:
"RAGS is a fun name but it carries a serious message. The garment sector has for too long been associated with abuse and exploitation of workers in developing countries.

"I am therefore pleased to be able to launch this new initiative, which will help to make a real difference to how retailers in this country work with producers in developing countries. The benefits of the garment sector for development are huge - particularly for women - and it's important that we encourage producers here to take more action to make a positive impact.

"Responsible, ethical production should be the norm in the fashion industry, not the exception, and RAGS will help to change the image of the fashion sector."

RAGS is the first initiative of its kind from the Department for International Development (DFID) and will help to improve the lives of people working in the garment sector, which employs some 20 million people worldwide.

The UK garment industry is heavily dependent on products from developing countries - only 10 % of UK clothing is manufactured here - but the sector comes under a lot of criticism for worker abuses such as unfair pay and forced labour. RAGS responds to calls for action for an end to such practices in the sector.