CLOTHING manufacturers could qualify for up to £400,000 in grant aid under a radical new programme aimed at helping the ailing industry improve its competitiveness.

The sector, which has been battered by weak sterling and cheap imports, currently employs over 13,000 people and has been the subject of several high profile closures in recent years. Now Forbairt and the Irish Clothing Manufacturers' Federation (ICMF) have joined forces in an attempt to enhance the industry's business prospects.

The main plank of the campaign is a news programme called the Competitiveness Improvement Progamme, which is targeted primarily at companies which employ 25 or more. The programme will run for two years and will have a £4 million fund.

The first task for companies will be to undergo a thorough business audit. Forbairt will fund 50 per cent of this. A business plan will follow, which will feature a detailed programme to improve the company's competitive position.

This could include changing the product or marketing strategy, financial restructuring, buying new technology, retraining staff and making board and management changes if necessary.

Companies will not have to increase employment to qualify for aid. Instead, the emphasis is on improving profitability to maintain existing jobs.

There will be an overall grant limit of £2,500 per existing job. Companies will be able to get management development grants at a level of 50 per cent up to a maximum of £60,000 per company. "Change programme" grants will be paid at a level of 50 per cent up to a maximum of £30,000 per annum.

The Minister for Enterprise and Employment, Mr Bruton said last night the Government could not do anything industry specific" for firms - such as those in the clothing industry which were suffering from the effects of weak sterling.

Mr Bruton acknowledged that employers PRSI and the impact, of the tax wedge re resented a higher burden on clothing manufacturers than on other less labour intensive sectors.