'Viability, not subsidies for yards'

'Whoever tries to present the idea that subsidies can continue is being dishonest' - PM

Production subsidies for the shipyards would have to stop by the end of the year, but the Government was committed to train workers so that the docks' restructuring plan could successfully forge ahead, Prime Minister Lawrence Gonzi said yesterday.

Replying to a letter from General Workers' Union general secretary Tony Zarb, Dr Gonzi said that any aid granted after 2008 would have to be specifically geared towards training and investment.

He said that his party sympathised with the general sentiment of the Maltese, who felt the only road for the shipyards was economic viability, not production subsidies.

"Whoever tries to present the idea that subsidies can continue after 2008 is being dishonest. The position of the EU is clear that this cannot take place," he said.

Dr Gonzi added that the Nationalist Party in Government had always believed that the shipyards could become viable if everybody pulled the same rope and worked towards common objectives. "This is the belief that guided the Government over the past four years, and after the March 8 election, a Nationalist Government will continue to adhere to this commitment," he said.

Dr Gonzi also referred to the party's electoral programme, which promised to: "Continue the restructuring programme so that the shipyards can become viable, according to the package negotiated with the EU, as part of the Accession Treaty."

However, Dr Gonzi did not respond to Mr Zarb's requests for clear commitments on a number of issues, among them if there were plans to re-open negotiations with the EU to review the agreement on the shipyards and secure its future.

Mr Zarb also wanted to know if the Government was prepared to do this (re-negotiate with the EU) in agreement with the GWU.

In his letter, Mr Zarb also referred to comments made by Dr Gonzi who said there were no plans to downsize the shipyards, and asked if this commitment applied for the future.

He also asked Dr Gonzi if he was prepared to replace the executive management of the shipyards, since it had failed to reach its objectives.

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