As the China textiles crisis deepens, an Ilkley-based international wool organisation is trying to broker a summit of top retailers to persuade them to source their goods closer to home.

Woolmark, the group which promotes Australian and New Zealand wool, is anxious to arm twist some top High Street names to buy more of their products from the UK and Europe.

And the marketing organisation insists that the retailers should focus on better quality rather than huge quantities of low cost goods from the Far East.

Woolmark's commercial director Malcolm Campbell described the situation as "a real can of worms".

Mr Campbell, who is nearing his 12-month term of office as president of Bradford Textile Society, said that Bradford companies could take advantage of the chaos over Chinese clothing quotas.

"One of the key things is that I'm trying to get the retailers to look at better quality," he said. "The retailers are getting a bit of stick but we need to be working together. A lot of retailers have ordered too much from China and they're now beginning to realise some of the issues.

Mr Campbell said that key retailers such as Marks & Spencer and Debenhams needed to develop better product in Europe.

He said: "China knew the barriers were going to be lifted and were well-prepared. Peter Mandelson (the EU Commissioner for Trade) reacted almost by reflex. Now everybody's crying over spilled milk.

"It's about planning and it's also about reviewing materials supplies from Europe. Bradford manufacturers could take advantage by approaching upper market retailers to offer better quality. We have to be careful that we don't compare ourselves to Coca Cola rather than champagne. And we should be able to lift ourselves above this and sell to China."

Sue Sadler, of Marks & Spencer, said that, although an interesting suggestion, the situation was more complex.

She said: "Unfortunately the UK textile industry is now quite small. We were one of the last to go abroad because of price. I totally agree with Malcolm Campbell on quality and we've always had this at the forefront and we won't compete with discount retailers. But you have to provide goods at a price the customer wants to pay."

Meanwhile CBI chief Sir Digby Jones criticised the EU's handling of

Chinese textile exports.

"This is the new Commission's first real test of its free trade credentials and it has not covered itself in glory," he said. "Trying to jump through protectionist hoops to safeguard the interests of a minority of member states is ridiculous and will solve nothing in the long run. It is totally unacceptable that the UK retail sector, already under pressure, is being jeopardised in this way.

"The Commission cannot act as King Canute against the rising tide of globalisation. The reality is that China, India and Brazil all have lower labour costs and can produce textiles much more cheaply. EU textile manufacturers need to do what UK textile manufacturers have done and concentrate on high value, niche

textile ranges and design.

l The latest talks between EU representatives and Chinese officials to free up millions of impounded garments broke down in stalemate yesterday and will resume on Sunday.