The Labour Party yesterday questioned whether the reason given for the closure of a schoolbag-manufacturing factory was merely an "excuse".

MLP spokesman for industry Chris Mangion said that while the party expressed solidarity with employees of McNeill's, which announced it would be closing down due to the cost of labour in eastern Europe and Asia, it questioned the motives.

"What is certain is that production costs are continually rising," he said, adding that a Labour government would, together with experienced local industrialists, look into why industry was facing these difficulties and assess what must be done improve competitiveness.

He called on the Government to help the workers to overcome this shock and to assist them in any way possible to find "decent" alternative employment as quickly as possible.