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PR18/06/2008 AD on the future of Drydocks

Alternattiva Demokratika has been saying all along that the Malta Drydocks needed focussed and serious action - something which it seems the government left for too late in the day.

AD Spokesperson on Energy, Industry and Innovation Ralph Cassar 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 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.”

AD Chairperson Dr. Arnold Cassola concluded by saying that “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. All proposals should be discussed seriously with management, unions and potential investors. We are also disappointed because the government left things to the last minute and failed to act on the Appledore Report, the government itself had commissioned. Time is running out and the families whose livelihood depends on this enterprise must know what lies in store.

Ralph Cassar
PRO
99894962

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