The government took up the challenge made by the opposition and, after holding a meeting with the General Workers Union to discuss the announced privatisation of the Malta Shipyards last Friday, followed it up with a parliamentary session on Wednesday in which Prime Minister Lawrence Gonzi made a long statement about the government’s intentions and later replied to questions put by various MPs.

Now the ball is in the opposition’s court and, as Dr Gonzi asked at the end of the sitting, what will the Malta Labour Party’s position be? Its deputy leader for parliamentary affairs, Anglu Farrugia, has said that the opposition agrees with privatisation in principle, but what will the MLP do about the drydocks?

It is the government’s opinion that now is the right time to privatise the shipyard. Dr Gonzi gave several reasons for this, both in the press conference when the privatisation was announced, and last Wednesday in Parliament where the issue was explained in greater detail.

The most glaring reason is the fact that the government can no longer continue to subsidise the shipyard as from the end of this year because of European Union regulations. The EU is very clear about this, and the news that came from Brussels – a few hours before the shipyard’s privatisation was discussed in Parliament – is further proof that no short cuts will be allowed.

On Wednesday, the European Commission ordered Hellenic Shipyards to pay a e230 million subsidy back to the Greek government with interest, saying that the money gave the company unfair commercial advantage over its rivals. It would be the same for Malta Shipyards if the government had to continue subsidising it in 2009.

Secondly, the international maritime sector is booming and there is therefore a better chance that the privatisation process will be successful. Over the past years, the government has received several requests from foreign companies which had an interest in selling or leasing the drydocks.

Thirdly, the government knows that public opinion is very much on its side in this regard. The drydocks have already cost taxpayers some e950 million in subsidies over the years, money that could have been used on other projects elsewhere. A restructuring process held a few years ago did not bring about the desired change, and the only way out – once closing down is not an option – is to privatise the shipyard.

In many quarters, the privatisation process is not being questioned. Even the General Workers’ Union, which normally adopts an anti-privatisation stand, is being extremely cautious in its approach, while doing its best to secure the best possible outcome for the drydocks’ workers.

It is how the privatisation process will take place and the conditions of such privatisation that will be a matter of public debate from now onwards.

In the next six months, the shipyard’s future will be decided. The government must seek the best solution in the interest of the country, without however neglecting the interests of the 1,700 families that will be affected by the privatisation.

The criteria that have been laid out by the government to the Privatisation Unit – which will be responsible for the whole process – make it clear that the government wants this new chapter to start with the least possible hitches.

And it is with this in mind that all the stakeholders involved must be careful. Everyone has a part to play. The government wants to privatise; the opposition must keep an eye on the process and spur it to get the best deal; and the union must safeguard the workers.

Yet, at the end of the day what is important is that the privatisation is carried out smoothly and that Malta, as a country and as a people, gets the most out of a situation that has cost it so much in so many years.