The task force for restructuring the shiprepair yards was set up just over a year ago. That it was necessary to create a high-level organisation to deal with the decades old problem of two over- manned, under-performing enterprises that required enormous sums of taxpayer money to keep them in operation is recognised by both political parties. The electorate at large has long been aware of the drain on public money the 'yards effectively were.
It is also generally agreed that reforming the two 'yards, their work practices, manning structures, management performance, marketing skills and bringing about a much needed sense of active competitiveness was vital to their operations and to their survival as economic enterprises. An analysis of post-Independence operations, first of the dockyard and, later, of what has been a demonstrably ill-fated shipbuilding yard, vividly shows the enormity of the loss-making ability of both units.
When the Nationalist Party was returned to power in 1987, Dr Fenech Adami's government drew up an agreement worth scores of millions of Maltese liri in a bid to help the 'yards become viable. That money went down the drain. In 1996, when the Labour Party was elected, Dr Sant was never in any doubt that the two 'yards needed to be radically overhauled. He asked Mr John Cassar White to draw up a report and to recommend a way forward. The report left nobody in any doubt that surgery was required.
Earlier this year, the task force set up a voluntary early retirement scheme. The result of that was to bring the number of workers down by 700. The target of the task force was in the region of 1,200.
A fresh attempt is being made to attract another 500 workers into retirement, but it looks as if this plan is about to face strong resistance, with the General Workers' Union claiming that no agreement had in fact been reached over this in the task force.
The basic aim of the task force is to make the 'yards viable by the year 2008. To that end, the restructuring plan has set objectives that have to be met between now and then.
A very important development was the deal Malta has reached with the EU in its negotiations for membership. It allows the government to provide state aid to the shipyards until the 'yards' restructuring process is concluded at the end of 2008.
Clearly, over-manning, which is costly and inefficient, is a central problem that had to be dealt with. Bringing down the manning number by 1,200 will achieve a saving of Lm6 million a year (assuming, conservatively, an average wage of Lm5,000). With a leaner, well-trained workforce, there is the additional advantage of greater efficiency and competitiveness.
At the end of the day, the task force has to deliver in three areas: manning, diversification and competitiveness. The latter is dependent on the first two plus a combination of improved management and worker skills. It is performance in these areas that will bring the 'yards on to the feet they never had. The opposition may wish to gain mileage by saying that we are working to a deadline set by Brussels. Its leader would have probably set himself an even earlier deadline in 1998.