While the war of words over the productivity levels at Malta Shipyards erupted this week over the General Workers' Union's claim that the 'yards were about to lose €46.59 million (Lm20 million) over two years, in a major ship conversion contract, the Infrastructure Ministry said yesterday it had called on the board to investigate the case last December.

Last December 18, the board of directors of Malta Shipyards had been directed by means of a letter to investigate and establish what had led the company to find itself over the contract in such a position that "was contractually and legally at a disadvantage", the ministry said.

Following those instructions, PriceWaterhouseCoopers were commissioned to carry out a study which is now at an advanced stage. The study will allow all the facts to become known.

On Thursday, the General Workers' Union had said that if Infrastructure Minister Austin Gatt is convinced the shipyards are in dire straits because of the lack of productivity, he should order an inquiry.

On Tuesday, the GWU called for an inquiry into the conversion contract which, it said, could cost Malta Shipyards €46.59 million (Lm20 million).

It added that the shipyards' executive management should either explain or be held responsible for the state of affairs.

In its reaction, the ministry had claimed the union wanted to wash its hands of its responsibility for the low levels of production that led the company into an unsustainable financial corner. The truth of the matter is that a big part of the negative impact on this contract lies in workers not finishing the work on time and jobs having to be redone, the ministry had said.

The GWU had replied that it will not stop until all the facts about this issue are made known to the public.

This is the last year the EU will allow government subsidies, a fact that could possibly lead to the closure of Malta Shipyards which has been plagued by debts over the past decades.