Wednesday, 18th June 2008 - 18:46CET
Government ignoring offer for collaboration - MLP
The Labour Party this evening criticised the way the Prime Minister had announced plans for the privatisation of Malta Shipyards without consulting interested parties.
Party leader Joseph Muscat said that in so doing, Dr Gonzi had ignored Labour’s offer to collaborate on measures for the future of the enterprise. He had also showed that the word “together” was only good for electoral slogans.
“It is clear that Dr Gonzi wants to work alone” Dr Muscat said in a joint statement with Helena Dalli, the opposition spokesman on the shipyards.
“Instead of involving all the stakeholders, including the trade unions, Dr Gonzi acted as he thought fit, and now he has called for consensus and wants everybody to agree with him”.
Dr Muscat and Ms Dalli said that while the government had recently blamed the workers for the state of affairs of the shipyards, it said nothing about the major mistakes made by the company itself.
While dockyard workers during the elections had been promised peace of mind, today’s decision did nothing towards this end.
The government had decided that the workforce needed to be reduced, without even seeing the plans which those interested in buying the shipyard might have.
The MLP said it would not allow this senseless government arrogance to deviate it from its duty to seek the best solution for the dockyard workers, the economy and society.
RSS
Comments
You/say: MLP should still promote its plans
Joseph knows this will not be in Malta’s best interest. ‘Two cooks spoil the broth’. Labour must collaborate with Government’s plans. Labour’s holistic Harbor Regeneration vision that sees MDD playing a significant role as a public company in tandem with major European contractors has been voted out, end of story. This vision is too far off Government’s project-by-project philosophy.
Hence Government must brief opposition to the hilt. Government has no clear path not knowing whether to whole-sale or cannibalise. Investors will therefore play the tune. They can be very hungry people especially the absolute land-speculation greedy. They will breathe heavily behind cabinet’s backs. A combined Government/opposition stand may keep land-speculators at distance. Anglu Farrugia could be Gonzi’s greatest ally if MLPN agree to keep the hungry mouths at bay.
Collaboration is important to attract strong investor interest willing to take a long-term view because of national consensus.
Contrast HSBC to MIA. HSBC - hostile acquisition, Government sold at ridiculous price. HSBC was happy because of a short two-year pay-back period. MIA’s transaction, on the other hand enjoyed national consensus - owners take a long term view to the benefit of all stakeholders.
What a poor reply to Mr Eric Saliba ! You reminded us, of sant and Jm, Same ,Same.
As for sant he discharged the good micro bit the mlp had ( if any ! ).
and his yes man ,J.M, yes he is charging the mlp's machine battries, but with dead ones and a faulty charger some 20 years old ! this is the new mlp people. cheer's.
re batteries.....i think i'll go for something energy saving. they should go well with the 5 energy saving bulbs gonzipn promised us before the election.
You seem to prefer bizarre speculation to facts.
Fact 1. 2003 … Malta Shipyard …workforce reduced to 1,700 from 2,600. (TOM19h) meaning that Government decided that 1,700 was the work-force threshold that would see MDD reach sustainability.
Wrong decision:
Fact 2. Dr Gonzi said …to make the company more attractive for possible investors, the 1,700 workers had to be reduced drastically (TOM 19th).
The yard could therefore never reach sustainability with the fixed-cost burden of 1,700 workers. Your speculation is thereby shown to be hollow
Fact 3. Government’s failure is accentuated by the fact that drydocks was operating in favourable market conditions. ‘Prime Minister Lawrence Gonzi said the government decided to privatise this "asset" at a time when the demand for the service it offers is at its optimum…’
Fact 4. Capital investment contemplated in ‘the plan’ was never carried out.
Government committed grave mistakes. Yet this is not time for recrimination but to learn lessons, put heads together, find best solutions (including privatisation option). If Government wants to go it alone despite past fumbling, it should go right ahead carry the burden of full responsibility and the ensuing garlands or crown of thorns depending on outcome.
Without sounding arrogant or patronising may I say that I truly appretiate your last blog...well written and makes valid points without being personal....it makes better reading......and therefore basis for a sane debate
.........I think your first two points in a way betray the idea of MLP's participation in the country's wellbeing........the MLP should still promote its plans and the better they are than Gonzi's the better for malta.............
....can we agree at least that if ( in my opinion "hopefully") this Privatisaion goes ahead all Parties will consider seriously
1-----Workers rights/not loosing any of the best talents due to the early Ret. scheme
2-----The price we are ready to sell the MDD for
3-----Trying to get a deal with "commitments" like Dubai Intern City
4-----and MOST importantly the plans of each and every investor
......Maybe D.Attard could tell me whether it is allowed to make tenders (price, commitments........) public? Is it possible to have acess to tendering processes? After all with all our differences we should all aim for one thing---excellence and sustainability-----and having acess to who is the better of the potential investors could make or break this Privatisation
Duly noted. However you are wrong again.
The government presented a restructuring plan which, if adhered to properly, would have seen the shipyard break even by December 2008. Evidence of this could be seen up until 2005 when production took a dive and the workers and management and their union wrongly assumed that the MLP would be in power and that Alfred Sant would wrestle the EU to accept reopening the accession agreement thus permitting ongoing subsidies to the dockyard.
By a mere 1580 votes, their plan was derailed and now both the 'preferred' union and its workers find themselves unable to reverse a trend set by none other than themselves.
Please make note of that!
after the first week as mexxej of mlp, is he thinking that he is Malta P.M Dr Gonzi ? JM must not waste the Government time by, as in the past 10 year's, not to mention the other 10 years
in the Opposition, were always crying the LE for everything, which led the mlp to itself Destruction, JM knows well that Collaboration is by no means when he pretend some publicity he is gonna get it ! Dr Gonzi and the P.N are leading the country, and Yes they want Collaboration but an Honest one's Only. cheers
My reaction to your earlier comments was removed. I will try to reply to your latest more civilized comments best I can.
1. Only Government has the power to act. Only Government's plan is relevant.
2. Opposition can only monitor Government’s performance and behavior. Any MLP plans are today irrelevant because it does not have the power to implement.
3. I do believe that MLP’s plans for the MDD were an integral part of the vision to regenerate the Harbor region on the Sydney concept; now water under the bridge.
4. The MLP is willing to collaborate with Government on the MDD challenge for the benefit of all stakeholders, including the tax payer.
5. To collaborate, MLP obviously needs to be informed of plans and objectives.
6. It appears that the MLP came to know about Government’s nebulous privitisation plans through the media. People in the street are saying that Government only wants MLP to rubber stamp Government action irrespective of its nature.
N.B. Government failed on its promise to achieve a viable MDD by end 2008 despite a favorable business climate. Blaming workers speaks poorly of Government’s vision, authority and leadership qualities. (Mr Martinelli please note).
It doesn't take a know-it-all to state the obvious.
Eliminating subsidies doesn't mean automatic reduction of taxes - it means better use of the revenue. Reduction of your income tax is another promise independent of the reduction of subsidies.
The 'hundreds' of redundant 'yard workers you refer to are a far cry from 8000 taken on by an incumbent Labour governments two decades ago and are providing useful work.
@Eric Saliba
Of course the GWU and the MLP are blameless! They always pushed the workers to improve production and remain competitive over the years. Who's kidding who?
I do not need a definition of 'consultation'. Will you explain what will initiate the necessity of consultation?
The value of HSBC shares were not set by the government. An independent body of accountants and market experts determined their value. Educate yourself. The 'conditions' of HSBC workers are compatible with similar banking practices elsewhere, i.e. based on production and accountability - not like the shipyard workers.
@ J. Smith
PM's plans for renewal energy do not depend on the removal of subsidies since the government intends to spend 320 million euros out of the 855 million coming from the E.U.
of course gonzipn needn't ask permission from the opposition to implement electoral pledges !! but the opposition would be very right in criticising gonzipn when these pledges are not honoured / broken ....like the housing subsidy for first time buyers etc.
to me consultation means meeting up and formulating an agreed strategy before meeting up with potential buyers.
i don't know what consultation means to mr martinelli and other pn apologists !!
There is one thing that seems to escape most. The shipyards (as structured) were never really thought to be a feasible business venture, but an important military ancillary service. The only way forward for it to “possibly” become feasible is based on at least 2 important conditions;
1) Heavy restructuring (even more than has been done so far)
2) Benefit from the networks of decent foreign investors.
Where in the world is there a yard with more managers and administrators in air conditioned offices than skilled labourers?
Despite their losses, the yards are a big plum - major public assets now being offered on a silver dish to private investors. No doubt these private buyers will be depicted as our Saviours...
I assume that it is Dr. Luciano Busuttil, MP who is a new member in Opposition? That being the case, does he (and many others) expect the Prime Minister to consult or ask permission from the Opposition, Unions and other entities to start a 'thinking' process every time his government wants to proceed with any of the 300 some electoral promises?
Dr. Gonzi stated that he and his Cabinet decided that the best course for the shipyards is privatization and that there was interest shown by foreign investors for the acquisition of the shipyard. Of course the decision will not be taken single-handedly! Dr. Gonzi never even hinted at that and between now and when (and if) privatization comes about there will be plenty of discussions and consultations.
I am really surprised at the comments coming from an educated man such as Luciano which prove that he has much to learn yet.
The shipyard problem has nothing to do with the availability of work. There are many shipyards within a hundred or so kilometers of Malta which are doing quite well, thank you.
The problem with our 'yard is that our production is low and to add insult to injury, when jobs are available, there are elements which throw a wrench in the works. How many work disruptions over - neutrality - imported workers and other politically motivated manufactured problems? How many times are you going to break deadlines and expect a ship owner to return for repeat business?
I never heard or read that the GWU complained about lack of plant investment. All I ever hear the GWU moan about is the unwillingness 'to accept any redundancy from the ' yard'. Well we are past that now because if not enough workers accept an early retirement package (which the GWU undoubtedly will find fault with), then there will be redundant workers.
If anyone thinks that it gives anybody pleasure seeing the demise of the shipyard, they are dead wrong. We all would have liked to see the shipyard prosper but the most interested stakeholders did not!
What you (and GonziPN) are saying is what in Maltese is called "nghattu ix-xemx bl-gharbiel". Do you (and those complaining about tax-money-down-drydocks-drain) realise that whatever this government has done and is doing is yes, reducing / eliminating subsidies BUT IT DOESN`T MEAN THAT THE EXPENDITURE FROM OUR TAXES IS REDUCED. Its just playing with numbers to obey the Accession Treaty. Instead of tax going to subsidise the drydocks, it will pay the early retirement benefits. Even in the last Austin-driven restructuring (which was only to keep within the terms of the man-hours limit for subsidy), hundreds of workers were remoevd from the drydocks books and transfered to the government - assigned to cut grass, to paint lines or to localcouncils. Who is STILL PAYING THEM? WE. At the end of day its still the same pocket forking out the money.
HSBC and MALTACOM doing well? Yes of course: for the new owners (bought at less then going rates and profitable). Ask the workers about their conditions though!
Does the MLP and J.Muscat or anyone from the Oppostion have any alternative?
If yes what is it?
If no then what has the MLP been doing?
What is the MLP ready to discuss?
Had the MLP won the last election would it have had a plan or not? And if yes where isit?
Does the MLP want more subsidies from my pockets? Yes or No??
...............these are the "simplistic" questions people are asking in the streets and they're asking them to ALL the stakeholders including our prospective PM
I have collaborated (through my taxes) enough. Issa daqshekk.
..............drowning crab?????............how can a crab drown if it lives in water?? seems like your hysteria has left your imagination run a bit too wild!!!
You make interesting points reBig Business. Government statements. however, reflect poor decision making over the last years:
1. Over recent years interest was being shown by private investors for the acquisition of the yard. Government also stated that this is a good time to sell. This means that on a demand and supply basis, the supply of dry-dock capacity has globally dwindled to an extent that dry-dock capacity is in demand. How come our yard is therefore faring so poorly in such an agreeable business climate? I recall Mr. Meilaq saying, some thirty years ago, that the yard should hold on through rough times. So many yards were closing shop that the supply side will eventually work towards the benefit of the Malta yard. His views are now proved to be correct.
Moreover, persistent calls for the yard to upgrade its hardware fell on deaf ears. We now come to sell the yard as a poor performer in good market conditions, meaning that the final price obtained will be low unless government will permit the easy-route property speculation option as a sweetener.
I do not say this in criticism but as an exercise to learn from past mistakes.
"Top boys" EFA and Lawrence Gonzi have governed for the last 20 years. Your MLP "top boys' governed for 22 months. Need I explain further? Democracy was exercised on March 8 - no need to democratize 'democracy' a second time.
Whether by one vote or 15,000, the government has a mandate to fulfill and is now being criticized for doing so! Only the MLP and the GWU seem surprised by the government's decision, so with all their brains, have they failed to see the writing on the wall for the last seven years?
@ James Sultana
Obviously JS has no concept of how big business works. He is right however when he wrote that any interested parties will pay bottom price and will pare down the number of workers, so much so that the government has anticipated all this and will offer early retirement packages to make the sale of the shipyards more attractive. Even if the shipyards are sold for one euro, the government will still be ahead millions since it will no longer pay subsidies.
As for HSBC and Maltacom, can JS complain? To my knowledge they are both doing very well, thank you.
If J.Muscat wants to collaborate he should issue a statement making known his views about the subject. He has got every right to disagree with the government’s plan but in that case he should provide another plausible alternative.
If he says “Le” just for the sake of it, for most of us will see it as more of the same as before, that is like ‘le’ for the power station, ‘le’ for Europe, ‘le’ for the removal of levies, ‘le’ for VAT, ‘le’ for the introduction of the Euro and ‘le’ for everything.
Another ‘le’ issue which J.Muscat will be called upon soon to collaborate on will be the pensions reform. If I am not mistaken labour’s view upon this subject is still the same as before, that there is no problem and everything should stay as it is.
Collaborating means backing an unpopular action if it’s the best interest of the country and its people.
So the majority, in your opinion has dwindled huh? Maybe we should hold weekly surveys and change the Government based on the mood at the time. How about we get Peppi to run the survey every month on Xarabank and we can all send in our opinion and agree as one big happy family who will be 'it' that month. Reminds me of 'min jiskorja goaler' (wasn't gowler in those days).
The 'top boy' as you put it (gee thanks for the respect Albert) has the constitutional and democratice obligation to govern this country. It seems that many MLP followers like you simply cannot fathom that you lost the un losable election. Democracies all over the world work that way. Just because you have yourselves a new 'toy boy' (MY words) does not give your party any right to dictate anything to the Government.
Spend the next 5 years grooming your boy wonder into a Messiah and you may have a chance - with those that cannot see through the plastic smile and smirk.
Good luck but in the meantime - grin - yes grin - and bear it!
1 party has been voted to lead and therefore make the hard decisions. The other party can be consulted of course and should. This would make for a better relationship. Do they have to consult with the opposition, no. Therefore, the decisions are not equal. PN decide.
However using this as a soap box to argue about something petty like "they did not consult with me". The question is....does he agree or not. Don't sit on the fence, make a decision. For or against?
If Muscat offered to contribute in the form of consultation did he not provide it as yet? I do not know. If the case is that he did not, he cannot offer to help, do nothing and expect people not to make decisions without you. This is not a problem that snuck up on the country, surely the MLP had plans in their manifesto for this problem if they had gotten into power?
........please note that PN is shouldering the responsibility of his actions by decisively formulating a strategic plan (which has been long coming) to remit what ha been the rotten apple in malta's financial coffins. He is not asking the MLP or GWU to share the burden of responsibility....if he did he would not be a good leader, he is taking sole responsibility for that, as any government should do. I would seriously worry if after all these years of consultations with all stake holders.....he would again go down that route,. Gonzi is again proving to be a leader.....which is what a government should be in the first place........ Now before any of you might, start screaming like little girls about consultations this and equal partners that!......please keep in mind, that good governance means consulting the opposition and GWU only after a strategic plan has been decided upon, .....AND NOT HINDER THE GVNT FROM MAJOR DECISIONS, otherwise WHAT'S THE SCOPE TO HAVE AN ELECTED GOVERNMENT!
1. TheNP won a relative majority. Majority of valid votes rejected a (legitimate) PN Government.
2. Labour offered collaboration on matters of National importance.
3. Government set in motion a process re:Shipyards based on significant close-ended stances. It did not consult opposition ( 2 hour meeting). Of course Government is government and it has no obligation to consult.
4. The Government's amazing stance is that having decided to unilaterally move ahead with no consultation, it then amazingly told the opposition to collaborate with Government,
Now any 1st year management student will tell you that if you seek collaboration, you need to have in place a strong communication platform.
Therefore Government has two options:
a. Go it on its own and that is fine by all
b. Communicate and ask for collaboration - that would be nice for us as a mature nation
Going on its own and demanding collaboration is in my books just an opportunistic political stance the kind of which most Maltese have had their fill. Should we turn a leaf or keep to old political opportunism. Joseph has put his hand out. Why is Government biting at it?
1. your analogy of Husband and wife does not hold water. if anything the parties are two quarreling neighbours who switch houses every five years.
2. The 'husband' did announce the changes. In his manifesto. And Muscat, being the well-versed Euro MP that he is, knew this was coming, because there was no other choice. Government is bound to stop subsidies.Government wants to save jobs. So government must sell out to private enterprise. it can only do this as a going concern.
3. I repeat what sort of consultation was called for over an advert posted by government calling for an expression of interest.
I may try to understand that the MLPGWU can hardly afford loosing yet another bastion, but it is evident that MLP officials have not really understood the message between the lines contained in the electoral defeat report. TOO MANY COOKS (in MLP's case of the poor kind too) SPOIL THE BROTH.
About "doddy" time this decision was taken! As with other important strategic decisions taken by the PN many will come around to support it.
Is this not the opposition that we all wanted? And now we have Lawrence Gonzi launching the Dockyards privatisation without even consulting the opposition. I dont expect Dr. Gonzi to take orders from the opposition but why not consult and maybe a better outcome is achieved? I`ve had enough of partisan politics, of political arrogance and of this very old way of doing politics. The matter here is not whether or not privatisation is the best way forward. The matter is all about the way of doing politics. But maybe it`s Dr. Gonzi`s arrogant advisors or else Dr. Gonzi himself is not reading the writing on the wall. The facebook generation is craving for a newway of doing politcs.
So before shooting nonsense, read well what Labour is asking for. The way you want it smells of dictatorship...my way or no way...GonziPN.
One last thing. Where does the word 'flimkien' stand here?
If a husband suddenly decides to change house without even mentioning it to his wife, and expects her to start packing as soon as he gives the word ... then of course she objects, unless she's a 'yes' person and stupid! At least he should get her opinion and discuss. He could be the boss, but she is his partner. This is happening on all fronts that gonzi decides to go ahead with. Gonzi decides and gives the news of his decision, then turns for co-operation. This must stop once and for all! The opposition should keep this in mind when
necessary.
I thought the winning party governs. Can you imagine the previous labour ministers consulting the opposition? Yeah........Pull the other one, its got bells on.
If it is in the best interest of the country and it's economy to privatize the Dockyard, so be it.
It is apparent that with the Yard in the hands of the government, losses have been mounting steadily, for one reason or another.
If the GWU and the MLP has a plan that will render the Yard viable without the subsidy of the tax payer, then they should bid for it as a private enterprise.
If not, let the government elected by the majority of the people decide what to do with it.
The PN and MLP are not equal partners in government. One is the ruling party and the other isthe opposition party and so it shall be for the next 5 or so years.
We might as well get used to it.
Is Muscat now expecting to be consulted whenever Government puts out an advert? Because that is all that was announced today. Am i the only who is seeing this as a bit of posturing by muscat to say, see we offered a hand, but they wouldn't let us help them. A hand to do what? Write copy for the advert? Ah, but look at it another way, when the going gets tough (ie when negotiations begin to sell the Shipyard,Muscat will be in a better position to say,' i offered my help before, now don't blame me if i encourage the workers to create problems.' Not such a fool that man after all.
What if for example, this "interested investor" decides to reduce the workforce by 50%? Who will pay the redundancy and social assistance to these workers ? WE. What if these investors decide to lower the working conditions, should this be accepted blindly just for the sake of not saying "NO"? What if after making the maltese workers redundant and while WE pay them the benefits, the investor brings "low cost labour" from the Baltic-EU countries? What if he is given the yards for a bargain and then goes bankrupt ? Should we keep saying YES ?
After all, aren`t WE still paying those workers who as part of the restructure plan had their payroll shifted from the yards to the "Local Councils" and then their place taken by Bulgarians and Poles ?
Of course it's the government's responsibility. The shipyards' destiny is a foregone conclusion. Everyone knows it except for the MLP and the GWU because as always, they want to appear to be the champions of the workers while doing everything to undermine the government's plans which were proven over and over again to be the right ones.
The only alternative to privatization is outright closure. Statistics shown elsewhere indicate that the public purse has been dinged for a billion Maltese liras in wage subsidies and write-offs - a significant percentage of the national debt.
It has been obvious for a number of years that the situation cannot continue and neither is it fair for the rest of the hardworking population to be taxed in support of a losing entity.
The government has taken the only logical decision and now it is the Opposition's duty to help bring about the best solution for the redundant workers and the selection of any interested party willing to take on the challenge of making the shipyards a profitable concern.
All governments, whatever the colour, should seek a national front. This is the second time after the PfP incident Gonzi decided to go hiw own way without consulting the Opposition.
I'm not seeing any negativity in this statement as the title rightly witnesses.
Or does the PN only wants collaboration on the pairing issue??
Flimkien means discussing, consulting and than deciding. Gonzi wants to impose.
The Flimkien Slogan was only electoral propaganda which shows that Gonzi is only interested in power.
In fact Joseph is not criticizing the privatization itself but is emphasizing on the need of consensus in our country. We can achieve consensus by discussion and not with a government imposing on everyone else.
Pity you four guys do not work at the yard otherwise you would test and taste the cook.
So four PN super-oracles have shared their infinite wisdom with us. If GonzoPN says something - it MUST be the best option and we should all bow our heads! One party leader offers conciliation and the hand of friendhsip and the other persists in bull-dozing his party's ideas like a demi-god. As the largest private employer, the Drydocks is a national problem and it has to be solved by consultation with ALL parties concerned. On this issue GonziPN seems to be led by his nose by Austin Gatt. Of course there will be repercussions.
You are there always ready to start criticism in a way to picture the new labour leader in a negative way. What are you pretending, that the government will do what he wants without considering half of Malta?
You should appreciate that the labour party is willing to help and not being the machine to criticize somehow who is practicing the democracy.
The honeymoon is over dockyard - you actually have to work now and not refuse projects because you feel like - the honeymoon is over Dear Dr. Muscat it is time you see how the big boys play - the nation is fed up to its nose of paying millions to the dockyard only to have them not even try to help themselves!!! The honeymoon is over the Malta Le Party is back
So is the new political season the fact that the Le is said by a blue eyed boy?!?! Or is it that Dear Dr. Muscat is trying to be sarcastic, ooh that is the same old Labour Party.
Prosit Joey and the trinity, back to square one. You can come out Dr. Sant, now, we know you're there.
The mask didn't take long to come off - we are back to "everything the Nationalists do is bad wrong and will cause ruination to the country".
Wasn't a long honeymoon for Muscat was it? The reality of marriage commitment has finally hit home!