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Weather in Malta

21.3°C dust

dust

Time Zones:

New York

Malta

Shanghai

" Serving the world...

...from Malta "

Malta Shipyards to be Privatised

19 / 06 / 08

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The Malta government yesterday announced its decision to start the process to privatise Malta Shipyards.

The Prime Minister, Dr Gonzi, said the government had decided to go to privatisation at a time when the demand for its service is at its best and when the government is receiving several expressions of interest from various companies, mostly European, especially from northern Europe. Interest was also registered from companies in Russia, China, Japan, Singapore and America. Communications Minister, Austin Gatt, said that every year over the past four years, between four and five companies expressed their interest to buy Malta Shipyards, the most recent being last April.

Whilst calling for national consensus on the matter, he was optimistic about receiving constructive criticism from everyone, including the opposition party. He said that if everyone pulled the same rope in the same direction, positive results would be achieved in the country’s best interest. He believed the country as a whole would back the decision.

Dr Gonzi said that the government should be the regulator not the operator of large companies like Malta Shipyards. There were other privatisation decisions taken in the past, which he described as having been successful for the country, including Mid-Med Bank, Maltapost, Malta International Airport, Bank of Valletta, Malta Freeport and Tug Malta.

The government would make an international call for expressions of interest but would keep an open mind over whether all or parts of the shipyards would be sold. The privatisation process will be administered by the Privatisation Unit.

The restructuring process, which started before Malta joined the EU, was reaching its end and, despite the subsidies and several efforts to make the company viable, Malta Shipyards was still making a loss and eating into the taxpayers’ money.

Dr Gonzi said the privatisation process was a sensitive one because it involved the families of the workers there. As had happened in the past, voluntary early retirement schemes will be offered to the 1,700 workers presently employed but this, Dr Gonzi said, will be discussed in more detail during meetings between Finance Minister Tonio Fenech and the General Workers’ Union, which represents the workers.  This was being done in order to reduce the figure of employment drastically thus making the company more attractive for possible investors.

Dr Gonzi said the government will be keeping the EU informed of all the details of the privatisation process and that, after receiving feedback, he will be making a statement in Parliament and replying to questions on the matter.

In its initial reaction to the announcement, the GWU said that, as a model employer, the government should have held consultations before deciding to privatise the shipyards. It will not accept any job losses and neither will it accept "arrogance" and "imposition". Finally, the union said it will keep workers informed about developments.

Malta Shipyards to be Privatised

19 / 06 / 08

Share Article on 

The Malta government yesterday announced its decision to start the process to privatise Malta Shipyards.

The Prime Minister, Dr Gonzi, said the government had decided to go to privatisation at a time when the demand for its service is at its best and when the government is receiving several expressions of interest from various companies, mostly European, especially from northern Europe. Interest was also registered from companies in Russia, China, Japan, Singapore and America. Communications Minister, Austin Gatt, said that every year over the past four years, between four and five companies expressed their interest to buy Malta Shipyards, the most recent being last April.

Whilst calling for national consensus on the matter, he was optimistic about receiving constructive criticism from everyone, including the opposition party. He said that if everyone pulled the same rope in the same direction, positive results would be achieved in the country’s best interest. He believed the country as a whole would back the decision.

Dr Gonzi said that the government should be the regulator not the operator of large companies like Malta Shipyards. There were other privatisation decisions taken in the past, which he described as having been successful for the country, including Mid-Med Bank, Maltapost, Malta International Airport, Bank of Valletta, Malta Freeport and Tug Malta.

The government would make an international call for expressions of interest but would keep an open mind over whether all or parts of the shipyards would be sold. The privatisation process will be administered by the Privatisation Unit.

The restructuring process, which started before Malta joined the EU, was reaching its end and, despite the subsidies and several efforts to make the company viable, Malta Shipyards was still making a loss and eating into the taxpayers’ money.

Dr Gonzi said the privatisation process was a sensitive one because it involved the families of the workers there. As had happened in the past, voluntary early retirement schemes will be offered to the 1,700 workers presently employed but this, Dr Gonzi said, will be discussed in more detail during meetings between Finance Minister Tonio Fenech and the General Workers’ Union, which represents the workers.  This was being done in order to reduce the figure of employment drastically thus making the company more attractive for possible investors.

Dr Gonzi said the government will be keeping the EU informed of all the details of the privatisation process and that, after receiving feedback, he will be making a statement in Parliament and replying to questions on the matter.

In its initial reaction to the announcement, the GWU said that, as a model employer, the government should have held consultations before deciding to privatise the shipyards. It will not accept any job losses and neither will it accept "arrogance" and "imposition". Finally, the union said it will keep workers informed about developments.