Alternattiva Demokratika yesterday expressed its disappointment that government's plan for restructuring the Malta Drydocks had failed and this public sector enterprise cannot, at least in its present structure, survive.

Chairman Harry Vassallo said: “It is obvious to all that Malta cannot continue to carry a burden of Lm 10 million per annum to keep this industry going at all costs. The Malta drydocks has already cost the country Lm 300 million in subsidies.”

He continued: “This has been the cost of poor management, political stasis and the intransigence of some of the company's employees. On the other hand it is cowardly for the Minister to wash his hands of the situation, when just one year ago he was attempting to take political credit for what was apparently a business turnaround.”

Dr Vassallo said there were many questions that Minister Gatt needed to ask. “What has gone wrong in the last year? Why did a whole year have to pass before government informed the country that another Lm 10 million of our taxes had been lost?

Doesn't the company prepare accounts, at least on a quarterly basis?”

He continued the rhetoric: “How is it that the company has managed to make the same losses as those registered in 2004, when the level of business has doubled? Why is it that every government enterprise Minister Gatt has been responsible for in the last 4 years has gone from bad to worse?”

Spokesman for finance and economy Edward Fenech explained: “In view of the fact that after 2008, Malta cannot provide any more operating subsidies to the Malta Drydocks, it is imperative that government establishes what the future of this company and its employees is. It is obvious that bold decisions must be taken.”

He continued: “The Greens are ready to be supportive of change; however we insist that Minister Gatt also takes political responsibility for this failure. He must stop this behaviour of taking credit for successes but shunning responsibility for failures, like this one. As always we are not just critical but are willing to make proposals for what we believe should be the future of this enterprise."

The Greens said that Minister Gatt, who has been responsible for the Malta Drydocks, should have the courage and responsibility to declare that his plans have failed.

Meanwhile, they said, the senior members of management must take responsibility for this commercial failure and tender their resignation.

AD also said the Prime Minister should to seriously consider the recommendations made in the Appledore report of 1997 that suggested that part of the drydocks can be restructured into a commercial entity building solar panels.

AD said the Government must ensure that certain indispensable industrial services that the drydocks provides to manufacturing businesses can still be offered. “Ideally this should be through a separate entity that retains a core group of highly-skilled drydock employees. The services of this entity should be offered commercially. Any subsidy that may be needed to ensure the continual provision of these key services to industry should be kept to a minimum and paid out of the funds of Malta Enterprise,” said Dr Vassallo.

He also said: “The government should consider the privatisation of any line of business that may be profitable, and tie the private enterprise taking on this like to retain as many drydock employees as is commercially viable. All other employees who are not retained should be given one year's notice.”