Prime Minister Lawrence Gonzi yesterday wrote to GWU Secretary General Tony Zarb in reply to a letter sent by Mr Zarb a week ago. In his letter Mr Zarb asked about downsizing at Malta Shipyards and whether a PN government would be ready to re-open talks with the EU on helping the dockyard.

In his letter, Dr Gonzi said the only way forward for the dockyard is through economic viability. Whoever says there may be operational subsidies after 2008 is not being honest, Dr Gonzi said.

The dockyards viability can only come through a big increase in productivity, through joint ventures with international leaders (but the union threatened industrial action when the dockyard was about to hold talks with a world leader on the superyacht business), and through the better use of facilities (and even here the union called industrial action as it did not agree that Boiler Wharf be given over to cruise liner business).

The union should allow the dockyard workers to develop their skills, Dr Gonzi concluded.