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Press release 14 02 08

AD appeals for realism on the future of Drydocks

In a press conference held in Sliema, Alternattiva Demokratika appealed to government and opposition to refrain from turning the Malta Drydocks into an electoral football once again. Dr. Harry Vassallo stated that “all politicians of goodwill should look at the situation at the Drydocks with realism and propose measures to address the future of this enterprise. The Labour Party is fooling people saying that it can extend the lifeline the next government can give the Drydocks by re-opening negotiations with the European Union, something that is plainly impossible. The Nationalist Party seems intent on giving up on the enterprise and having it shut by year end. Alternattiva is here to make its own proposals.”

Spokesperson on Finance, the Economy and Tourism Edward Fenech said that “in its present set up it is almost certain that the Drydocks will not be able to survive without subsidies. Since subsidies can no longer be given after 2008, this would spell immediate closure. Unfortunately with 1,700 employees the Malta Drydocks is caught in a lose-lose position and cannot compete. Some of its competitors operate with as little as 600-700 employee and therefore are more specialised and more efficient. On the other hand other competitors, particularly those in the Far East, operate with many thousands of people and can out-bid the Malta Drydocks because of economies of scale and low labour costs. We believe that the Drydocks can only survive beyond 2008 if a few hundred employees are re-assigned to a separate business organisation that should be involved in the building of solar panels and photovoltaic panels. The next government has an opportunity to retain the skills of many Drydocks
employees by shifting their work onto production that can benefit all Maltese families by providing them with heavily subsidised solar water heaters and photovoltaic panels. For once in many decades the Drydocks can be in a position to help people save on their energy costs. We believe that if this restructuring is included in a national alternative energy strategy, the European Union may allow the government to provide certain subsidies and possibly the EU will provide funds of its own. The possibility of exporting solar panels and photovoltaic panels exists and it would be wise for the next government to involve the private sector both for funding and marketing expertise.”

Dr. Vassallo concluded by saying that “AD refuses to make any political capital out of this issue. We recognise that the Drydocks is in a very precarious situation and beyond 2008 its ability to survive is very much in doubt. However we are here to propose concrete solutions to identify what can be saved from this enterprise, without the taxpayer to have to fork out many more millions. If the proposal to relocate hundreds of its employees into producing energy saving products is taken up, then Malta stands to gain. In the next coalition government AD will insist that our proposals are discussed seriously with management, unions and potential investors. We appeal to the Prime Minister and Leader of the Opposition to consider what we are putting forward from now and invite them to adopt this proposal. Time is running out and the families whose livelihood depends on this enterprise must know what lies in store.

Ralph Cassar
A/PRO

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This entry was posted on Sunday, February 17th, 2008 at and is filed under Malta.You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.