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Hold on. Poland is post-communist country. During previous system it maintained many companies that weren't economically viable. Shipyards weren't build becaus
by Ralfp 10y ago
Hold on.
Poland is post-communist country. During previous system it maintained many companies that weren't economically viable. Shipyards weren't build because it was economically viable to have shipyard there or there. They were build because Communists knew it was easy to guarantee mass employment by expanding heavy industry. This means that any polish city on our coastline with population required to staff shipyard got one. This shipyard would then employ between 20 to 50 thousand people on its own, as well as give employment for countless other people working in the region in shops supplying those shipyards or their workers. People from nearby smaller towns would then flock to larger towns to work here.
When system changed, so did the need for our fleets (in old system we've even maintained the Pacific Trade fleet and Pacific Shrimpfishing Fleets!) and in result the shipbuilding and maintenance services plummeted. It was same all across the board. Coal mining, steel mills, farming, weaving. Millions of people had to find their place in new reality. It wasn't surprise that people elected those promising heavy donations for what was left from first democratic's governments mass privatization, closures and sales. This meant polish taxpayers were keeping nonprofitable remnants of heavy industry in meantime being fed promises next governments about reforms coming in that will reduce the burden and sitting down by TV after work to watch in the news how our coal miners or shipbuilders strikes made current govt cave in, postpone cuts and offer another "mobilisation package" of millions of taxpayer money for keeping those industries alive.
This was business as usual until the year 2004 happened and Poland entered EU, which has changed the rules of the game and started hammering our govts for dishing so much taxpayers money at non-profitable private companies, that thus don't have to really care about being competitive with others.
How is this judged? Depends on region you are from. Some areas judge this in plus for EU because "apparently EU respects our money more than our own government".
But for other this is proof that EU wants to kill our heavy industry. Occasional news of EU letting same slip for some company in Germany or France is then blown out of proportion by the media to whole shipbulding in the west being taxpayer funded being allright while suspiciously its wrong when its polish govt helping polish companies.
- egeozcan 10y agoSo, I take that they say it's unfair because the government needs to help the shipyards to make them economically viable. Thank you for the detailed answer.