The Industry Ministry yesterday announced it would put the Elefsina Shipyards into liquidation with the prospect of calling for tenders to sell the enterprise.
Addressing a press conference, Industry Minister Costas Simitis and Alternate Industry Minister Christos Rokofyllos said this idea has not yet been approved by the government, pending a meeting today with lending banks and a last round of consultations with workers.
Prime Minister Andreas Papandreou told reporters in Crete on Tuesday night that the government's target was for the shipyards to continue to operate so as not to add to the ranks of the unemployed.
The Peratikos Group announced Monday it was suspending its activities in Greece, closing the Elefsina Shipyards and withdrawing its offer - the only one received in international bidding to buy the Skaramangas Shipyards. The decision leaves approximately 2,100 shipyard workers out of a job.
A government inter-ministerial committee was due to announce its decision on the Peratikos Group bid for the Skaramangas Shipyards in 10 days' time.
On Tuesday, a spokesman for the Group appeared to leave open the possibility of not shutting down the Elefsina Shipyards but linked this eventuality with the government's decision on the Skaramangas Shipyards.
Mr. Simitis and Mr. Rokofyllos said the move by the Peratikos Group was "blackmail." Mr. Simitis said difficulties faced by the Group "are due to its administrative inadequacy and evidently to the lack of capital" and that Mr. Peratikos' intention was "to have the state secure for him continuous and unimpeded profits in every case."
He said such security would not be given, adding that the tactic of the New Democracy government for privatisations without securing conditions for the successful operation of new enterprises had proved to be mistaken.
Mr. Rokofyllos said the shipyards had been formally sold to an shady Cypriot-controlled company named "Astir Management Ltd", which lacked any assets whatsoever. Moreover, from the date of purchase in 1992 till now, the Group had burdened the shipyards with debts of 17 billion drachmas (seven owed to banks, two to the IKA Social Insurance Fund and one to ETEM and the rest to private persons).
He rejected the proposal to create a single shipbuilding and repairs agency, explaining that this was not allowed by commitments undertaken by the country with the European Union. Liquidation and healthy privatisation was the sole solution, he added.
Commercial Bank representative Mr. Spyridakis said the bank would move against Mr. Peratikos and utilise the Elefsina Shipyards. The Commercial Bank is a major shareholder in the shipyards. However, the bank's holdings are compromised by the 17 billion drachma debt accumulated by Mr. Peratikos.
Mr. Simitis and Mr. Rokofyllos held talks yesterday with the General Confederation of Workers of Greece (GSEE) and the leadership of the trade union and the Elefsina Labour Centre. Also present at the meeting were MPs from the region.
Mr. Rokofyllos said liquidation protected the shipyards from a possible bankruptcy strategem by the Group and possible measures (confiscation) by Mr. Peratikos' many debtors. He said this method was the best for the salvation of the enterprise and jobs.
Union leader Mr. C. Karambournas said he was disappointed by the discussion and demanded the immediate reopening of the shipyards and proposed the creation of a public single shipyards agency.
GSEE President Christos Protopappas conceded there were difficulties in the situation and proposed calm and hard work. He said alternative solutions to privatisation should not be excluded after liquidation, adding that if liquidation was combined with dismissals or the prospect of the shipyards being closed, the GSEE would fight back.
Labour Minister Ioannis Skoularikis said he considered the closure of a privatised enterprise two years after its transfer unacceptable. Mr. Skoularikis noted ND's responsibilities and assessed that Mr. Peratikos was using extortion to take the Skaramangas Shipyards as well. He said he hoped the government would not bow to extortion and the shipyards would resume operation.
The prime minister said the decision to shut down the Elefsina Shipyards was due to the "bad 1992 contract" under which the Group acquired the yards. The premier expressed his "surprise" at the Group's decision. "The government's target is for the shipyards to operate so as not to add others to the wave of unemployed," Mr. Papandreou told reporters in Crete, where he is on holiday.
National Defence Minister Gerasimos Arsenis denied press reports alleging that "circles close to him estimate that the government will accept the Peratikos' Group demands".
The Peratikos Group has attributed its decision to close the Elefsina Shipyards and withdraw its proposal to purchase the Skaramangas Shipyards to a lack of "rules to the game."
An announcement by the Group yesterday said the decision to close the Elefsina Shipyards was not linked to the fate of the Skaramangas Shipyards but to a lack of rules to the game, namely the lack of government policy in the sector, strong illicit competition, the total indifference of the Industry Ministry to the problems of the Elefsina Shipyards, the accumulation of losses for the shipyards due to the implementation of loss-making state contracts and the inaccurate description of the shipyards' economic situation during its sale, which burdened the Group from the very beginning with 7.5 billion drachmas.
The announcement said these problems were chronic and of a vital significance, adding that they were not subject to isolated and disjointed solutions, nor could they be resolved with compromises.
Regarding the Elefsina Shipyards in particular, the announcement denied that the Group did not pay funds to purchase the shipyards and stressed that, on signing the contract, 2.8 billion drachmas was paid to the selling banks while shareholders themselves paid another 1.2 billion drachmas.
The Elefsina Shipyards operated at a loss due exclusively to state contracts for building troop carriers (a loss of eight billion drachmas) and a delay in implementing the contract with the Hellenic Rail Organisation (a loss of three billion drachmas). The announcement said government indifference existed over the implementation of relevant investment programmes.
On the question of the Group's withdrawal of the proposal to purchase the Skaramangas Shipyards, it said it was the best to be submitted at a European level since it offered 7.5 billion drachmas (at current prices) and committed itself to financing an in vestment programme totalling 25 billion, including 9.2 billion drachmas of its own funds. It also pledged to maintain 2,100 jobs with the prospect of increasing them to 2,850 in three years' time.
Main opposition New Democracy leader Miltiades Evert, after a visit to the Elefsina Shipyards yesterday, said there was "an urgent need for the Shipyard to operate tomorrow (today), because if it doesn't, the reputation of the ship-repair industry will suffer greatly".
He called on the workers to open the shipyard today "if the government is not able to", and said a comprehensive study and confrontation of the ship-repair units in Greece was necessary because "the reverberations of one shipyard influence the other".
Mr. Evert said privatisation of the shipyards was the only solution, regardless of the "failure of the first contract", adding that the "guarantee of a credible State able to help the shipyards every time a specific problem arises" was necessary. He said it was unacceptable that the fault should be placed on a contract signed two-and-a-half years ago "because the owner and State should have seen what was going on".
Mr. Evert declined to comment on shipowner Michael Peratikos' or the government's stance, but said "it is not possible for there to be an industry employing 2,000 people and in which so many ships with international interests are tied up, and for the government to say it was taken by surprise. This shows that the Greek State h as no credibility"
Opposition New Democracy party spokesman Vassilis Manginas said the government's proposals to save the Elefsina Shipyards "prove that the government has ignored how great the significance of re-opening the Elefsina Shipyards is."
Mr. Manginas said it was obvious that Mr. Simitis and Mr. Rokofyllos were not aware of the special circumstances which exist in the ship-repair industry and were overlooking the essence of the problem by spending their time on legal procedures. The spokesman reiterated that the Elefsina Shipyards should function as a private concern, as foreseen by the European Union, and called on the government to make this clear to the employees.
Political Spring party spokesman Notis Martakis said the ND agreement with the Peratikos Group for the sale of the shipyards was "disadvantageous", but that the current government was too weak to solve the problem due to internal rivalries within the ruling party. "We call on the government to give an immediate solution to this immense social problem," the spokesman concluded.
Dimos Koumbouris, deputy and member of the Central Committee of the Communist Party of Greece (KKE), said the solution to the problem of the Elefsina Shipyards could be found in the proposal put forward by the workers to form a single state-owned shipbuilding industry, the only, he said, "favourable, viable solution to the advantage of the workers, the national economy and the defence of our country".
The Coalition of the Left and Progress party said that the situation regarding the shipyards left the Elefsina Shipyards at the mercy of private interests.
US President Bill Clinton said yesterday that his administration was committed to working for stability in south-eastern Europe and the Aegean and stressed the US's strong ties with Greece.
Speaking to the private Greek television station, Mega, Mr. Clinton said US policy aimed at the maintenance of stability in the Aegean and finding a peaceful solution to the Cyprus issue. "I am very proud of the fact that for the first time in 16 years a presidential envoy was appointed to promote a solution to the difficult issue of Cyprus," he said.
"The United States and Greece have fought together in two World Wars, were united during the Cold War period and remain allies within the framework of NATO.
"The US is committed to the achievement of progress in Greek-Albanian relations, for the peaceful solution to the Cyprus problem and for the improvement of relations between Greece and Turkey.
"My special envoy, Mathew Nimetz, continues to co-operate with United Nations envoy Cyrus Vance to find a mutually acceptable solution to the dispute between Athens and Skopje.
"This administration is committed to working for stability in south-eastern Europe and the Aegean.
"The time has come for old hostilities be set aside and (for us) to move ahead dynamically in a more peaceful and productive world for the 21st century."
Disputes within the ruling Panhellenic Socialist Movement, PASOK, are nothing to be feared, Prime Minister Andreas Papandreou said on Tuesday.
Responding to press questions on the climate in the party after the Disciplinary Committee recommended the dismissal of deputy Kyriakos Spyriounis for criticising the premier and his wife, Mr. Papandreou said: "Woe betide if we did not have reactions to what I do. The entire course of PASOK is one of conflict and reactions. This is how we build PASOK."
Asked whether there would be changes within the party, Mr. Papandreou replied that these would happen in time and with the unanimous approval of the Central Committee. He said that his address at the inauguration of the Thessaloniki International Fair in early September would be an appraisal of the government's achievements and prospects.
Interior Ministry Secretary-General Nikos Salayiannis yesterday categorically denied press reports that the government has a new electoral law in the pipeline.
"There is no question of the electoral law changing," Mr. Salayiannis told an Athens TV station, denying a front-page report in the Athens daily Eleftheros Typos that the Interior Ministry was preparing new legislation.
Mr. Salayiannis said the ministry had prepared a bill on streamlining procedures and, specifically, enabling voters registered in different municipalities from their place of residence to vote in their resident municipality.
He said the committee elaborating the bill had submitted proposals to the ministry, adding that proposals in the bill, due to be tabled in Parliament in autumn, would be brought to the attention of political parties.
Main opposition New Democracy party leader Miltiades Evert in an interview with the weekly review 'Economicos Tachydromos' published today, that Greece's foreign policy issues needed to be prioritised and that the threat from Turkey came first on the list.
Second and third place went to protecting Greeks living in Cyprus and Albania, while the issue of the Former Yugoslav Republic of Macedonia (FYROM) came in fourth, he said.
"The threat (of aggression) from Turkey can only be dealt with within the Europe an Union," he said. "The basic precondition for me (Greece) to renounce the veto is that you (the EU) secure my borders. Erect an automatic intervention mechanism for my borders and we will discuss the veto. I know that the European will not come to Greece to get killed, in the same way he did not go to Bosnia. I want them to reassure me that at any moment I will be able to obtain war materials automatically. For example, Turkey should know that the 1:3 ratio in tanks will become 3:3 and then it would think again."
He explained that tanks, aircraft and ammunition be placed at our disposal, adding that, with such a mechanism, the EU could guarantee a balance in weaponry as they would not send people.
Mr. Evert said his party's programme for government was ready, adding that its economic policy aimed at development as its prime target since the economy's main problem was structural. He said his party would have a limited number of ministers, abolish the post of deputy minister and initiate posts of permanent under-secretaries at the foreign affairs, education and finance ministries.
The creation of the institution of Ombudsman, an independent commissioner, was also important, he said.
Referring to relations between governments and trade unions, Mr. Evert said one listened, corrected and adjusted his views but when one took his decisions he stuck to them. "A stick and carrot are necessary. Incentives are necessary as well as sanctions. Incentives for every form of labour relation, in every phase of the production process. At the same time the stick is necessary, a system of sanctions to keep in line all those who refuse to adjust," he said.
Replying to a questioner, Mr. Evert said the break up and collapse of the PASOK government was difficult when the ruling party had the majority in Parliament in contrast to the previous ND government which had had a one-seat majority. Mr. Evert predicted rapid developments in the ruling PASOK party, without elaborating, but spoke of possible "uncontrolled situations."
Main opposition New Democracy leader Miltiades Evert has called on chairman of the International Union of Democratic Parties Carl Bildt for support to re-elect honorary ND leader Constantine Mitsotakis to the union's vice-presidency, it was announced yesterday.
In an August 11 letter to Mr. Bildt, Mr. Evert said: "With regard to the upcoming election of the new administrative council of the Union, to take place during the congress of party leaders in Seoul, I call on you to support the re-election of Constantine Mitsotakis, former prime minister (of Greece) and honorary New Democracy leader to the post of Vice-President of the Union."
Albanian President Sali Berisha yesterday welcomed the growing co-operation and friendship between Albania and Greece and said the official visit by Greek Justice Minister Anastasios Peponis was a tangible example of this co-operation.
Welcoming Mr. Peponis to Tirana, on the second day of his three-day official visit, Mr. Berisha expressed his conviction that "both countries and governments are resolved to develop and consolidate a close and friendly co-operation".
Mr. Peponis underlined the policy of friendship and co-operation that Athens was following with its neighbours before going into talks with Mr. Berisha and Prime Minister Aleksandr Meksi on bilateral issues. "The Balkan peoples need to co-operate among themselves," he said. "The Balkan peoples are capable of solving their problems themselves."
His visit, the first by a Greek justice minister to Albania, has received widespread coverage in the Albanian press. Two agreements, concerning judicial support in civil and penal cases and the mutual carrying out of court rulings in penal cases, were signed after talks between the Greek and Albanian justice ministry delegations, led by Mr. Peponis and his counterpart Hektor Frasheri.
In the framework of an agreement ratified in October, the two sides agreed to the gradual transfer of Albanian prisoners to Albania. Greek legal experts will also help elaborate basic laws of the Republic of Albania, such as the legal procedure code.
In his talks with Albanian officials, Mr. Peponis also referred to special issues such as the immediate operation of three Greek elementary schools in Gyrokastr, Delvine and Sarande in light of the new school year. The reply given by Mr. Meksi was satisfactory.
Mr. Berisha also noted that relations between the two countries would be further strengthened by the forthcoming visit of Greek President Kostis Stephanopoulos. The date of the visit has yet to be announced.
President Berisha referred in particular to the situation in the Balkans and expressed satisfaction for the Greek government's position over recent developments in Kosovo. Concluding his visit today, Mr. Peponis will meet Albania's Constitutional Court President Rustem Gjata.
Foreign Minister Karolos Papoulias expressed the hope yesterday that Albania and Serb President Slobodan Milosevic would deal with the question of Kosovo and the settling of Krajina Serb refugees there calmly.
The situation in the Balkans is "volatile", he told reporters shortly before departing from Ioannina airport for Athens. "Efforts are being made to overcome the crisis and the Contact Group's initiative is underway," he said. He reiterated that Greece was playing an important role in developments in the Balkans.
Air traffic controllers said yesterday they would hold work stoppages next week to press demands for higher wages. They said the work stoppages would be staged Monday from 2 am to 5 am and Tuesday from 8 am to 11 am as a "warning" to the government to satisfy their demands. Airport authorities said the protest action was sure to create delays in flight schedules.
The Bulletin apologises for a mistake by our Washington correspondent on Tuesday, who reported the tabling in the US Senate of resolutions on the Patriarchate and the pogrom against Istanbul Greeks on September 6, 1955 as decisions. The two resolutions have been submitted and circulated in the Senate but have not yet been ratified.