ZAGREB, Sept 9 (Hina) - Croatian Economy Minister Ljubo Jurcic on Monday expressed hope that government measures relating to shipbuilding would cost the government about 2.96 billion kuna (400 million euros) over the next five years,
of which almost 2.6 billion (EUR351.3 million) relate to the Brodosplit and "3. maj" shipyards.
ZAGREB, Sept 9 (Hina) - Croatian Economy Minister Ljubo Jurcic on
Monday expressed hope that government measures relating to
shipbuilding would cost the government about 2.96 billion kuna (400
million euros) over the next five years, of which almost 2.6 billion
(EUR351.3 million) relate to the Brodosplit and "3. maj" shipyards.
#L#
The government discussed the situation in shipbuilding companies
such as Brodosplit, "3. maj", Kraljevica, Pula's Uljanik, and
Brodotrogir on Aug. 22. On that occasion the government took on 2.96
billion kuna (EUR400 million) of their debts, of which 62 percent or
EUR236.4 million relates to Brodosplit, and 28 percent or EUR108.5
million to the Rijeka-based "3. maj".
Along with financial measures, the government adopted a series of
organisational measures as well as, defining a control mechanism to
monitor the implementation of the adopted conclusions.
Jurcic based his high aspirations for the government's measures on
the examples of Uljanik and Brodotrogir, which are operating
successfully. He emphasised that simulations had shown that
bankruptcy in failed shipyards would cost three times more than the
measures adopted.
The measures also deal with the role of the state institution
"Croatia's Shipbuilding - Jadranbrod" (HB Jadranbrod) which would
be the key control mechanism on the part of the state as the majority
owner.
Jurcic pointed to the significance of such a total control
mechanism, which will require monthly reports on the
implementation of the said measures.
The director of HB Jadranbrod, Nada Braovic, said that one of the
reasons for the government measures was the significance of the
domestic component in shipbuilding. That component represents 59.4
percent of the sale price of ships, she said. Looking at the
material involved, this consists of 60 percent of the price of the
ship, 30.1 percent is domestic material and about 30.7 percent is
imported, she explained.
The intention, however, is to increase the domestic share, Braovic
said, adding that about 250 domestic producers have shown
interest.
A significant organisational measure is that management boards in
shipbuilding yards will come up with a plan of restructuring and
business rationalisation which foresees a decrease of 20 - 30
percent of the current employees and the costs of staffing. This
will involve changes to collective agreements and if an agreement
is not reached before the end of the year, the government has
decided to resolutely withdraw all the above measures, Braovic
pointed out.
The measures amongst else foresee separating activities and
property that are not in the main line of business, and a
feasibility study of a merger between "3. maj" and Kraljevica, as
well as Brodotrogir and Brodosplit. Other measures will include
preparations to privatise Uljanik next year with the sale of shares
to employees and board members.
(hina) sp/ha