Dr Gatt said that in the light of the circumstances advanced by Mr Cassar White, he would regretfully accept the resignation.

Replying to Mr Cassar White, Dr Gatt wrote: “On behalf of the government, I express my gratitude and appreciation for the eight years of sterling service you have provided to the Malta Shipyards.”

He continued: “Since your appointment in January 1999, significant reforms and re-structuring efforts have been carried out with the goal of turning around Malta Shipyards into a viable entity, standing on its own two feet without the need of government subsidies. The extent to which this has been attained is certainly independent of your abilities and commitment to the goal itself.”

In his letter, Mr Cassar White said that “recent developments in my family life have made it necessary for me to concentrate now on personal family matters”.

He thanked the minister for the support he was given and said he appreciated the “professional standards with which you always conducted your relationship with the board and the executive management of the shipyards”.