There are many challenges facing the clothing sector, the Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney has said.

Launching the Clothing Sector Policy Review document, she said developing new ways of attracting and retaining people in the sector, meeting competition and identifying and developing new work practices and technologies "are all identified as issues that need redress if the clothing sector in Ireland is to survive into the new millennium".

The document noted the Irish clothing sector will continue to contract in terms of employment and numbers of companies. However, it feels the industry can evolve from the tradition manufacturing operation into an innovative, knowledge-based technological industry driven by the demands of niche markets. "If successful in this transition, the creation of high-skilled jobs in areas such as marketing and logistics will be the norm".

Mr Giles O'Neill, consumer products manager, Enterprise Ireland, said "good design is to the clothing sector what a research and development department is to the software industry".