Official statement on interested bidders today

The government is today expected to issue an official statement on its call for expressions of interest in the privatisation of Malta Shipyards, which closed at noon yesterday.

The call, inviting prospective buyers to submit their interest for appraisal, kicked off on August 11. A call for tenders is expected to be issued within two weeks' time.

Before the formal call for expressions of interest was made, Finance Minister Tonio Fenech had said that as many as 14 international entities, including American and Norwegian companies, had expressed an informal interest in the shipyards.

The government's privatisation plans came under fire last week by European Competition Commissioner Neelie Kroes who insisted during a visit to Malta that state aid rules had to be adhered to, stressing in strong terms that the government's plan to write off the shipyards' €100 million debt went against EU regulations.

Mr Fenech is hopeful an agreement with the European Commission will be reached.

In the meantime, the rate of workers applying for early retirement or voluntary resignation schemes increased somewhat following Ms Kroes's visit to Malta, reaching 700 by the weekend.

The Federation of Industry yesterday warned the government that "the shipyards will potentially be unable to meet any future commitments prior to the actual date of privatisation". It said that, despite having been urged to retain essential staff until the date of the shipyard privatisation, the process created a situation which is effectively threatening a number of potential contracts that were being negotiated with Malta Superyachts and Manoel Island Yacht Yard.

"Unless action is taken, the goodwill and contacts built up over the last six years will be lost and any new owner would effectively be purchasing assets with no goodwill attached. Worse still, the industry which supports many firms and a further 300 employees will suffer badly with no new work being taken for the 2008/9 season," the FOI warned.