Chinese contractors to blame for problems at Savar tannery estate: Bangladesh Minister

Salman Fazlur Rahman, Bangladesh private sector industry and investment advisor to Prime Minister Sheikh Hasina, has claimed that the China-based company contracted to build the tannery estate in Savar has not done a proper job causing big problems, Prothom Alo reported citing United News Bangladesh.

Speaking during a virtual meeting titled "Future of Bangladesh Leather Sector in the aftermath of COVID-19", Rahman said, "The tannery cluster of Hazaribagh has been shifted to Savar urging different experts to make it an environment friendly one. But Chinese builders did not work 'properly' at the tannery estate in Savar. That's why there are big problems now."

He said, "The China government has given us duty free access for Bangladesh. So over 40 per cent value addition in the products is needed."

"We have enough raw materials in leather products so it's very easy to take the opportunity. We will give equal incentive for leather and non-leather products to flourish the sectors. The leather sector will be subsidised to make it standards," he added.

The meeting was orgsed by the Economic Reporters' Forum (ERF), in collaboration with the Research and Policy Integration for Development (RAPID) and The Asia Foundation (TAF).

Prothom Alo quoted Rahman as saying that as businesses evade taxes, they need to be brought under tax net using digital tools.

"Tanners should use water on a limited scale. Otherwise we will impose tax on water," Salman said.

Urging more emphasis on the leather-based products for the economy to flourish, Commerce secretary Md Zafar Uddin said, "We have already have resolved many pending issues in the leather sector. Leather law has been made for sustainable development of the sector. The COVID-19 has created an impact here."

He further said that as the Common Effluent Treatment Plant (CETP) is the key component of the industrial basement in Savar, "We are working to resolve problems of the leather sector."

"Efficient operation of the Tannery Estate Dhaka should be of utmost priority in building export supply response. The relative profitability of leather goods exports have important policy implications to consider," Prothom Alo quoted M Abdur Razzaque, chairman of RAPID, as saying during the meeting.

He suggested that the leather industry needs a sector-specific, realistic, and modern policy framework to address the longstanding challenges and emerging trends in global and domestic markets.

( With inputs from ANI )