Congressman Renato Molling leads the Parliamentary Group on Footwear-Leather and Furniture Segment

 

Courobusiness interviewed Congressman Renato Molling (PP/ RS), president of the Parliamentary Group on Footwear-Leather and Furniture Segment, which was established in 2007 March, by the Economic Development Commission, Industry and Commerce, of the Chamber of congressmen, and the aim is find solutions and alternatives that can make the footwear-leather and furniture segment able to compete in the same level as the other countries, and so it can expand its production and export. Molling has not only presented the Group, but also has emphasized the importance to the segment, defending the industrial. Besides, the congressman talked about the needs of the segment and its demands together with the federal government.

 

COUROBUSINESS: How did the idea appear, and what has motivated the creation of the Parliamentary Group and what are its main aims?

 

Congressman RENATO : One of our goals with the entrance in the Chamber of congressmen was to defend the labor intensive segments, such as the footwear-leather segment, responsible for approximately 1 million of offices all over Brazil, and the furniture segment. We are representatives of the Vale do Rio dos Sinos Zone, in Rio Grande do Sul, the biggest footwear-leather pole of the country. Besides, my origin is from factory. I used to work on the footwear segment for many years. Because of this, I represent, in the Chamber of Congressmen , these segments of economy, and this fact has motivated the establishment of the Parliamentary Group of the Footwear-Leather and Furniture Segment. Our main aim is to get the attention of the government for the serious crisis that involves these segments, which is promoted by the dollar fall, the high tax burden, social charges and the unequal competition with the Chinese product.

 

COUROBUSINESS: What is the importance of the Parliamentary Group to the footwear-leather segment? What could this segment expect from the Group regarding to its enterprise problems?

 

Congressman RENATO : The Group has representation, has voice. We are a group of parliamentarians and not only one person fighting alone. My expectation is that we can get the attention of the Federal Government for the worst crisis of the history that involves the segment, and it must take action immediately, because it is necessary for the maintenance of these important segments.

 

COUROBUSINESS: Once established, what are the next steps to be taken by the Group, in this year of 2007?

 

Congressman RENATO : During our first administrative meeting, we have defined that the Group will promote regional meetings in the South of the country, Sao Paulo and Northeast Region, to learn more about the segment. In April 18 we have met at the 31st FIMEC – Leathers, Chemicals, Components and Accessories Fair for Footwear, Machines and Equipments, in Novo Hamburgo / RS, where we elaborated six crucial actions in order to reduce the segment crisis, and which must be resolved by the Federal Government. Now we will work at these points which are:

 

•  Exemption of Payroll of the labor intensive segments, because they have been punished for generating many jobs.

•  Increase of the Common External Fee of the products of the chapter 64 to 35%, measure that can help in the reduction of the competition with the Chinese in the external market.

•  Repayment of fiscal credits of PIS (social tax)/ COFINS with adjustment by Selic tax.

•  Creation of a fund for repayment of the exporters' ICMS credits (actually obey the Kandir Law).

•  Creation of a fund for the leathers segment in order to invest in technology and improvement of the competitivity, and it can be constituted by the tax paid on the wet blue export.

•  Inclusion on the Exception List to the TEC (Mercosul External Tax), the wet blue of caprines and ovines.

 

COUROBUSINESS: How does the combined action “industry-parliament” can help the footwear segment to overcome the crisis?

 

Congressman RENATO : The companies have already done their part, investing in technology and quality, and reducing costs, now it is the government's turn. And that's our role, to be a link between the company and the Government.

 

COUROBUSINESS: During the audience, which happened after the establishment, the congressman Ciro Gomes talked about a possible “disindustrialization”. What did he mean, according to you?

 

Congressman RENATO : This means that the extinction of industries, which will have to close the doors for not having conditions to compete in the market anymore.

 

COUROBUSINESS: One of the lawsuits to be endorsed by the Group would be the introduction of a Tax of 35% on the footwear imported from China. This measure would be enough, because of the low value offered by the Chinese, or it would be necessary to take any drastic action regarding to the import from China ? What would be these other actions?

 

Congressman RENATO: This action would help a lot, however we need close the doors a little bit more. The country has to stimulate the national product, inspect the smuggling and the piracy.

 

COUROBUSINESS: Another polemic in the segment history is the Wet Blue leather export to our concurrent. Asia is already the biggest purchaser of Brazilian Wet Blue. The imposition of an Export Tax of 9% has not had a great effect, because the Wet Blue export keeps elevated. Are there any other measures that could be discussed by the Group and be taken to the federal government?

 

Congressman RENATO: This is one handlings, to increase the export tax on wet blue leathers, considering as basis price the Chicago stock exchange. The return to the segment of the Wet Blue export tax value, through the creation of a fund for investments in technology, genetic improvement of the flock, machines, access to new markets, commercial promotion, environment and social responsibility.

 

COUROBUSINESS: What do you have to say about the factories closing in Rio Grande do Sul, principally at the Vale dos Sinos? And also about the displacement of young technicians, which have just graduated and go to work in China ? What could we do to keep these young people working in Brazil ?

 

Congressman RENATO: I stimulate principally the reduction of the tax burden, which in Brazil is the higher of the world. The Vale do Rio dos Sinos Zone has to be prepared to face this crisis. It must pay attention especially to the industrial segment, working in partnership with the state and federal government in the economy diversification. The job generation must be one of the main aims, not only in words, but also in experience. It is necessary to strongly face this crisis which reached our cities. All the activities; commercial, industrial, tourist and services are options of diversification and job generation. It is necessary to develop this subject with competence and in a prioritized way. Brazil has to invest more in research, so that our young people can have opportunity to create. Thus, they could be stimulated to stay in our country, contributing to the increase through their work.

 

COUROBUSINESS: How does the producer and exporter can contact the Group? How does he can make part of the fight for the government support?

 

Congressman REANATO: First, the segment must be united and ready. The Group is opened to receive demands, questions and suggestions. Our contact e-mail is dep.renatomolling@camara.gov.br . We don't have a room, a physical space; our secretary is located in our own office, in the Chamber of Congressmen, Anexo IV – Gab. 337, in Brasilia .

 

Revista Courobusiness, Ed. 51 – março/abril 2007