Editorial

By this Saturday the Maltese people should know the fate of what has been sold to them as the country's new hospital, a medical institution that, they have also been told, will be among the leading ones in Europe. The problem was that until Prime Minister Lawrence Gonzi decided to put his foot down there was no concrete indication as to when it will open its doors to patients, let alone how much it would cost.

A high-level meeting with Dr Gonzi and Skanska president Stuart Graham last Tuesday was inconclusive bar for one essential decision: the Swedish builders were given a November 6 deadline by which time they had to communicate to the government the final cost of the completed hospital and also the "delivery" date.

The Prime Minister had evidently preferred that meeting to have yielded fruitful results and, indeed, he was visibly disappointed. However, thanks to the stand taken by Dr Gonzi, the government is now in a win-win situation: Skanska will either get around to agree to move on and complete the hospital to the government's satisfaction or else, in case it decides not to budge from its present position, procedures are likely to start for the termination of the contract. Meaning that new builders would be found to complete the project and hand it over to the people.

This state of affairs puts Skanska in a quandary: Mater Dei Hospital will either fly the flag of their skills and abilities or else be considered as a monument of their incompetence. The choice really is theirs.

Comments made by the Prime Minister at the end of his meeting with Mr Stuart indicated very clearly that the bone of contention boils down to claims by sub-contractors. In fact, Dr Gonzi was quoted as having made it clear that it was up to Skanska and not up to the government to tackle problems with contractors.

That is quite correct. When the government had decided on a new hospital it assigned the job to Skanska which, in turn and as normally happens in such projects, entered into deals with sub-contractors to handle specific areas.

This also means that any differences on issues included in the main contract will have to be judged by a Maltese court/tribunal.

However, arbitration between Skanska and its sub-contractors is likely to take place overseas. The implications, especially financial ones, of such an eventuality should be clear to all.

In contrast to the Prime Minister, Mr Stuart spoke very little at the end of the meeting. To be fair with him, that should not be considered as unusual; after all he was not on home ground and it is not in the nature of businessmen to feel at ease with the press, unless they have good results to communicate.

But Mr Stuart did make a rather worrying comment: "We're discussing with the government and we only discuss with our customers and not with the press," he was quoted as saying. Fair enough. But the press was only after information on the way the meeting progressed and in now way expected to negotiate. And Skanska must realise it does carry a good degree of accountability towards the Maltese people who, at the end of the day, are forking out the millions of liri going Skanska's way.

Having said that, there is nothing to indicate that Skanska does not want to shoulder its responsibility. Indeed, the Maltese taxpayer is certain it will deliver.