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Ministry insists shipyards privatisation respects EU directive

The Finance Ministry insisted today that the privatisation of Malta Shipyards fully respected the EU Transfer of Business Directive.

Reacting to a letter sent by Alternattiva Demokratika to Vladimir Spidla, the EU Commissioner for Employment, Social Affairs and Equal Opportunities, the ministry said the bidders who would be awarded the shipyards would have to take over the workforce should the transfer of business take place.

The ministry insisted that the government never said it had commissioned a report to justify the number of workers who would have to leave the shipyard before privatisation.

This exercise was not even possible since only the expressions of interest could shed light on the type of activity the private sector deemed more viable. Furthermore, before issuing the Expression of Interest document, government officials discussed it with DG Competition officials.

The ministry explained that the figure of 700 was reached on the basis of internal management reports made by the shipyard management .

There had also been assessments by other shipyards that last year had expressed an interest in somehow participating in the shipyard but had withdrawn their interest particularly because of the high employment levels.

The government had also reviewed employment levels of similar shipyards in the region,including Palermo (around 530), Hellenic (Greece) (around 220), and Lisnave (Portugal) (around 350 workers).

The ministry said it wanted to remind AD, that failure of the privatisation process would not only mean that the workers would have no new business to go into, but would exclude the possibility for the government to offer voluntary early retirement and resignation schemes.

"The Maltese Government affirms that the process that has been undertaken is not only intended to respect the social obligations emanating from EU Directive 2001/23/EC relating to the transfer of business, but rather to ensure that we will have a successful privatisation that will allow us to transfer the remaining workers on the books of Malta Shipyards Limited to the new undertaking/s," the ministry said.

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Comments

Jeremy J Camilleri (on 21/8/08)
Dear Vella Zarb,.....

You shall have to wait for a reply from JFarrugia...you see, in his own words, his writings are requested...so he'll have to consult with whoevere requests his writings....
wally vella-zarb (on 21/8/08)
@J.Farrugia

Do you understand plain, simple, English? By what contortions of logic have you derived that conclusion from what I wrote?
Jeremy J Camilleri (on 21/8/08)
jfarrugia...

Have you been REQUESTED to write here as well?
J Farrugia (on 21/8/08)
@ W Vella Zearb seems that he does not care if we hand over in a golden plate more millions to MDD to profit nothing, but he is scandalised if we pay one miserly cent for Mater Dei, And to think that one day he may have to spend some days over there. And health is free for all. Shameful.
wally vella-zarb (on 20/8/08)
@Mr Micallef

What about the other, countless, millions of Maltese Liri that have also been spent on contract overruns - Mater Dei included - to the benefit of the other, well-known 'chosen few? At a rough guess I would say that 'over the years' these, too, amounted to more than Lm 400 million. We all paid for those, as well.
Charles Micallef (on 20/8/08)
Are some LM400 million (in old Maltese currency) paid over the years, by us the hard working and tax paying public, not enough subsidies to keep the Shipyards afloat. Do we dare ask for more? We could have paid for another Mater Dei with these subsidies or better still we could have used that money to reduce to cost of electricity bills which would have benefited all of us and not just the chosen few...................

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