A number of pressure groups have called on Prime Minister Robert Abela to address a number of pending issues before the proposed merger of Palumbo Shipyard and MSC Cruises comes into effect.

Their claims prompted the shipyard to react, saying that the merger, which has not been finalised, would only have "nothing but positive effects" on Malta's economy.

In a letter to Abela, the groups highlighted a number of concerns, including the fact that the deal will see more cruise liners coming into the Grand Harbour, which will lead to higher pollution levels.

A small-scale study in 2018 by BirdLife showed inordinately high instances of poisonous Nitrogen Dioxide in the Cospicua area. A noise and air quality monitoring station had been discussed in 2015, but this was never installed, they said.

The groups insisted that, before such a deal is sanctioned, the required shore-to-ship electricity infrastructure should be put in place

They also referred to waste management breaches that had been confirmed by MEPA in 2013 and 2014, saying that "no follow up action was taken, and to this day the hazardous waste remains buried in Cospicua."

The groups also accused Palumbo of labour contract irregularities, as well as eyesores in the area, including a jack-up oil rig that has been parked at the shipyard for several years.

They also said that, from the limited information available to the public, "it appears that Palumbo has not honoured the investment plan on the condition of which the Parliamentary Concession of 2010 was granted."

The groups said they are informed that Palumbo operated through a Panama company. "We ask for full disclosure and transparency about the adherence or otherwise to tax obligations, and accounting standards and guidelines."

The shipyard, they said, has also refused to employ Maltese workers.

"The past ten years of Palumbo operating the Cospicua shipyard have been plagued with scandals, causing serious problems to residents, lack of information, misinformation, and broken promises," they charged.

They insisted that they have the right to access to environmental reports and studies that "Palumbo was (and still is) obliged to carry out and hand over to MEPA/PA/ERA in order to retain the IPPC permit it was given."

They said that, before revising the parliamentary concession to allow MSC joint control of the shipyard, "we expect all the above points to be properly addressed. Any ensuing revised concession should ensure proper air, noise sea and visual pollution monitoring and control; enforcement of contractual conditions and tax compliance; safe, fair and dignified working conditions; and due transparency on all aspects."

Furthermore, they requested to know beforehand what the plans for the joint venture with MSC involve, and requesed that the government should legislate so that the new partnership will not lead to the speculation of the area for real estate purposes.

Moreover, in line with Malta's constitutional neutrality, no naval repairs should be allowed.

The letter was signed by: Azzjoni: Tuna Artna Lura, Association for Justice Equality and Peace, Flimkien Għal Ambjent Aħjar, Forum Komunità Bormliża, Friends of the Earth (Malta), Futur Ambjent Wieħed, Moviment Graffitti, Senglea Historical Society and Żminijietna - Voice of the Left. 

 

Palumbo reaction

In a statement, Palumbo Shipyards clarified that, to date no agreement had been finalised with MSC Cruises, "even though such a deal would have nothing but positive economic benefits for Malta."

The statement "is nothing but provocation from the usual suspects who for the past 10 years have been bent on seeing the destruction of the shipyard, little realising the harm they are causing not just to us on an international level, but also to Malta," the company said.

Palumbo said it condemns unreservedly the defamatory allegations and reserve the right to institute legal action. 

"Furthermore, the timing of their statement is particularly distasteful given we are fully focused at present on trying to safeguard the jobs of our employees and contribute to the Maltese economy during this global crisis caused by the coronavirus pandemic."

"Palumbo Shipyards has placed among the top three worldwide in the cruise ship refitting, and despite the crisis we face now we will continue to work in the interest of Malta and all its citizens," a spokesperson said.