The Government''s decision to cut tariffs on clothing imports will lead to a skills crisis in the textiles industry, says the founder of Christchurch fashion labels Snowy Peak and Untouched World.

Peri Drysdale has been in the fashion business for 22 years, employs 120 staff, and exports 40 per cent of her goods. She is worried about the impact the Government''s plan to reduce tariffs from 19 per cent to 10 per cent by 2009.

While she thinks high-end fashion businesses like hers will continue to manufacture here, she is worried about the impact on the talent pool.

"I''m concerned about the infrastructure of the industry. There is an ever-diminishing number of people coming into the industry to draw on," she said.

Traditionally, firms like hers draw on machinists who graduate to more difficult fashion work from other firms. But the training grounds are fast running out as firms outsource work overseas.

She believes the tariff reductions will see more of these firms head overseas. "It''s a skills crisis. What are we going to do for staff?"

She is also concerned about the impact on all the other textile suppliers such as zip makers and textile dyers. Her firm already faces steep tariffs into the United States and Japan, and she is worried our move to cut tariffs will erode our bargaining position.