End to Government Subsidies for Shipyards

Total Croatia News

ZAGREB, October 2, 2018 – The Croatian government is interested in shipbuilding surviving according to market principles because it would be unrealistic to endlessly subsidise that branch, as it has been until now, Prime Minister Andrej Plenković said on Tuesday.

Plenković, who was attending a meeting in Geneva on the Western Balkans, told the press that Economy Minister Darko Horvat had gone to Rijeka for talks at the 3. Maj shipyard and that a solution was being sought for that industry to survive.

“We are strongly interested in Croatia’s shipbuilding to survive in line with principles of market economy in accordance with Croatian and European regulations and endless subsidies like those that occurred before aren’t realistic anymore. It is important to find a framework that will enable wages to be paid out and for Uljanik’s competitiveness. We know that there are a lot who are interested in 3. Maj and Uljanik and we will see, negotiations are continuing,” the prime minister said.

Asked whether workers at Uljanik would get their next pay, he said that at the moment he couldn’t disclose that information.

Representatives of workers and unionists of the Pula-based Uljanik shipyard on Tuesday held talks with the selected strategic partner Danko Končar about his plans for the dock and the shipbuilding industry as well as about doubts regarding business diversification.

Unionist Đino Šverko told Hina the aim of today’s meeting in Pula was to get first-hand information from Končar about his business plans for Uljanik.

Šverko said Končar had informed them that he did not intend to become a majority owner in the dock and would like the government and employees to have a stake in the company as well.

The unionist also commented on the diversification of business, explaining that the repurposing of the shipyard’s current premises was supposed to provide funds for the long-term sustainability of shipbuilding activities. He said that all those plans could not be implemented if there was no support from the government.

Uljanik unionists and workers’ representatives will arrive in Zagreb on Wednesday for talks with the government on those issues.


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