On the need to investigate privatizations in Babcock
Juan Mari Arregi
2011ko urtarrilaren 04a
The future of Babcock (BW) on the left is in jeopardy. The first months of 2011, until May, will be decisive. For this reason, the workers – 5,200 people in 1973 and 392 today – are mobilizing for their jobs. The last demonstration took place in Bilbao during the Christmas festivities. The sinking of the Austrian Energy (AE), which owns BW, has just been known. The workers also demonstrated before the Basque Government in Vitoria-Gasteiz and turned to the PNV to mediate before the State Industrial Participation Society. If the situation is not clarified, further mobilizations are announced.
BW is a company of almost a century, founded privately in 1918. Payments were then suspended and made available to the public, after which it has been privatized twice, to this day. Its last owners were the German Borsig and the Austrian Energy (AE, formerly ATB). Since 2003, BW has received public support of EUR 1.5 billion. Since it was seized in 1978 and nationalized in 1980, more than 3 billion euros could be the money that has come out of the public coffers for this company. There have been constant suspicions of corruption and irregularities regarding those responsible for privatization who have passed through the BW. Private companies bought BW almost for free and also received millions of public subsidies. The industry and investment plans that were designed to give the plant a new impetus have not been fulfilled. And when it’s about to be abandoned – as AE will do now – the current owner wants to sell ten ships to their original owners, who previously received them for free. This situation requires a rigorous and thorough investigation by the Basque and Spanish parliaments, as there is a lot of public money at stake.
BW is a company of almost a century, founded privately in 1918. Payments were then suspended and made available to the public, after which it has been privatized twice, to this day. Its last owners were the German Borsig and the Austrian Energy (AE, formerly ATB). Since 2003, BW has received public support of EUR 1.5 billion. Since it was seized in 1978 and nationalized in 1980, more than 3 billion euros could be the money that has come out of the public coffers for this company. There have been constant suspicions of corruption and irregularities regarding those responsible for privatization who have passed through the BW. Private companies bought BW almost for free and also received millions of public subsidies. The industry and investment plans that were designed to give the plant a new impetus have not been fulfilled. And when it’s about to be abandoned – as AE will do now – the current owner wants to sell ten ships to their original owners, who previously received them for free. This situation requires a rigorous and thorough investigation by the Basque and Spanish parliaments, as there is a lot of public money at stake.