ZAGREB, Aug 22 (Hina) - The Croatian government on Thursday adopted measures aimed at rehabilitating the shipbuilding industry, including the take-over of 2.8 billion worth of shipbuilding companies' debts.
ZAGREB, Aug 22 (Hina) - The Croatian government on Thursday adopted
measures aimed at rehabilitating the shipbuilding industry,
including the take-over of 2.8 billion worth of shipbuilding
companies' debts. #L#
Two shipyards - "Brodosplit" and Rijeka's "3. maj" - account for
around 90 percent of the debts, the first having incurred 1.75
billion and the latter 803 million kuna of losses.
During an extensive discussion government members reminded that
this was another and final attempt to help the financial
rehabilitation of the shipbuilding industry.
Finance Minister Mato Crkvenac said this was the fifth stage of a
process of rehabilitation of shipbuilding companies, which over
the past decade cost nine to ten billion kuna.
"This is really the last such act," said Crkvenac, and Deputy Prime
Minister Goran Granic said: "We should offer them a chance, but we
have to be consistent - those who do not use it will, unfortunately,
have to close down."
Reconstruction Minister Radimir Cacic the measures adopted today
were not enough for some shipbuilding companies which proved unable
to operate.
Deputy Prime Minister Slavko Linic accused the companies'
management boards of incompetence and incurring losses. Even after
12 years we do not have management boards which understand market
economy, but would like a socialist-style one, he said.
He warned about the problem of delays in the delivery of ships, the
excessive administration, and the fact that the average salary in
the shipbuilding industry is above the state average.
Economy Minister Ljubo Jurcic said the measures adopted today gave
unsuccessful shipbuilding companies another four months to
recover.
Along with financial measures, the government also adopted a set of
measures referring to the companies' organisation. The management
and supervisory boards of "Brodosplit" and "3. maj" were entrusted
with drawing up, by the end of November, a plan of reorganisation
and economising, which is to include cuts in work force and
administration of 20-30 percent.
This entails changes to the collective agreements and if talks on
this matter are not completed by the two companies by the end of this
year, they will not be given financial assistance, government
officials said.
Along with other things, the measures also include inspections into
the justifiability of the merger of "3. maj" and the Kraljevica
shipbuilding company, as well as preparations for the
privatisation of Pula's "Uljanik" shipbuilding company, which
should start next year with the sale of company shares to employees
and management officials.
(hina) rml sb