Spanish adaptation to shipyards crisis

Reports

by the county authorities in the North West and North Wales. The main objective of the Special Study is to monitor and update the approved regional strategy for the North West and to provide a supplement to the various local authority structure plans. Further projects are planned to complete the overall programme of research.

recommendations for policy development and implementation will be made. These recommendations are also included to provide an initial situation which can then be monitored and amended as the resource is exploited. The third project within the overall programme is concerned with a fuller evaluation of the impact of Irish Sea Gas upon North West England and North Wales. A full survey of all available coastal sites for use as a marine pipeline terminal will be undertaken. Parallel to this, a detailed technique will be site evaluation developed (on the basis of the Merseyside study). This project will be used as an opportunity to further refine and define certain of the objectives of the overall research programme. This project will form part of a North West England Special Study of the Petrochemical Industry, commissioned

Summary The Celtic and Irish Sea Oil Research Unit has available a series of internal working papers for those requiring further information. Copies of articles and project reports are also available, although it is necessary to seek the approval of sponsoring bodies before releasing reports. The Research Unit is attempting to investigate a problem that confronts

many planners working in the field of strategic planning. The problems the absence of a created by comprehensive and integrated approach to resource management are long standing and increasingly manifest as a consequence of offshore hydrocarbon exploitation. The alleviation of such problems can be achieved only through the development of a Resource Management and Planning Model. Further information can be obtained by writing to the Celtic and Irish Sea Oil Research Unit, Department of Town and Country Planning, Liverpool Street, Victoria Polytechnic, 53 Liverpool L 1 6EY, UK. Peter W. Roberts Oiiand

and Timothy Shaw, Celtic and Irish Sea Gas Research

Liverpool

Unit,

Polytechnic, Liverpool,

UK

Spanish adaptation to shipyards crisis A

note

on the most

enormous

economic

recent

developments

and employment

problems

During the lustrum of the predominant petroleum crisis, 1973-77, the Spanish shipyard industry has passed from gratldeza to pobreza. Even when the effects of this escalation of stagflation in the shipping industry had become plainly apparent, the Spanish sector pursued its objective of full employment for the installations on the coasts of the I berian Peninsular. Given the natural time-lag which occurs in the industry between the placement of an order and the completion of sea trials of a vessel, this resulted in the anomaly of optimum production being attained in 1977, when the yards completed I 8 14 94 1 grt (the figure surpasses the previous record level of I 690 000 grt, recorded in 1975 for vessels handed over to their owners). However, this golden era of shipbuilding has reached an abrupt contretemps, and the effect of the lack of orders has finally passed the projection stage to hick of work for the many Spanish shipyards, including the huge, and recently inaugurated, installations of

MARINE

POLICY

January

in Spain’s

1979

struggle

against

the

posed by the shipping crisis.

Astilleros Espaiioles SA (AESA) at Puerto Real, near Cadiz. This latter cantonment of the AESA was designed exclusively for the series production of ULCCs and VLCCs, and vessels with an upper limit of a million tons each; nowadays, the location of Puerto Real provides one of the major headaches to an Administration which is beset by many. This antithesis between yards in full production, and an order book which every day registers a lower ebb, has finally required that the Administration pronounce upon its future industrial role. This declaration of intentions has been delayed by the vast political changes which have occurred in Spain since the death of Franc0 in 1975; however, the government has finally expressed the opinion that the capacity of these shipyards should be reduced by ha& Measures are now being implemented to translate this resolution into reality, which will have the effect of mobilizing manpower, so that personnel

from this sector may be trained, aided and persuaded to accept employment in other industries, and also to take advantage of early retirement schemes wherever possible. As the lnstituto National de Industria (INI) claims to control 92% of the shipyard industry (either directly in firms where its capital holding is absolute, as with Bazan, or 50Y0 as with AESA, or minority interests) this entity will be a leader in the objective of power reduction in the shipyard sector. Thus INI. as the large employer of shipyard labour, has a special plan for the future diversion of manpower into alternative industries, or sectors which are auxiliary to shipbuilding. During a conversation with the direct aide to the Minister of Industry and Energy, who is the Secretario General TCcnico, Sefior don Luis Marco, the information was provided that, of the 31 000 workers in this division of INI, plans are laid for the relocation of I4 000. This relocation of labour will be effected by early retirement for 4000 with incentive payments to achieve this step; some 6000 workers are to be retrained for other similar industries

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Reports (hopeful reference was made to the possibility of marine platforms, two of which have been built in Spain to date), and heavy industries which enjoy a mote healthy economic condition; another 4000 tnen will be destined to industries which have no relation to the shipyards. and thus will require a more profound adaptation to other activities, and will be especially selected for this motive. One of the latest policy statements has also emerged from a recent Council which has granted fff Ministers, emergency finance for the industry; although far below expectations, which had indicated the quantity of 27 000 million pesetas (mpts), the sum of I2 800 mpts has been made available to three the main companies in shipbuilding. Thus the capital will be augmented by 6300 mpts for AESA. and by 3500 mpts for ASTANO, while the Empresa National BAZAN is to receive a long-term loan of 3000 mpts. The fact that a public loan issue will be made to cover this amount is an indication of the economic condition of the country. Previous forecasts had included I6 000 mpts to cover outstanding deficits of these three entities, but to date these have not materialized. However, it is highly probable that further credits will be made available to this industry, as by 3 1 December 1978 its debts are estimated to amount to 23 000 mpts. Losses of AESA during 1077 were 1955 mpts, and are expected to reach seven billion (US) pesetas in 1978, so further emergency measures may be expected. Other firms are experiencing similar losses, but in the case of AESA, these are more serious considering that 1977 was the year when production reached the highest since level its foundation on I December 1969. and exceeded one million grt. The total turnover of this group was 40 853 mpts directly, and including its many affiliated firms, 5 I 478 mpts. The export figure for AESA alone was I3 429 mpts. As of 1 July 1978. total national orders were I 418 645 grt for 269 vessels. of which 71 with 427 355 grt were for exportation. Compared with the maximum conditions noted in 1974, the figures for I July 1974 were a total of 7 054 645 grt with 3 013 7 10 grt,

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thus demonstrating the alarming decrease which has occurred in Spain, as throughout the world. The present rate of fresh contracts is revealed from the tigures for the first half of 1978, when the only firm contracts signed were for 29 vessels of 103 667 grt (total). of which 24 544 grt is destined to sail under flags of other nations. Additional problems have been caused by the current political turbulence. Strikes are commonplace, and arc ruining firms, such as ASCON in Vigo, where a labour dispute has lasted over six months with no apparent end in sight. This has led to the recession of a $300 million contract by Cuba. for twenty-six freezing trawlers; twenty-two of these have been completed and handed over, but the final four are the subject of this action, as they should have been completed in 1977. but are still awaiting fitting out. Other yards have been similarly affected; although in common with Portugal. the new-found liberty seems to have lost its novelty, and the hard fact of maintaining a secure job is becoming more important to many workers than idealistic political theories. Thus, while the labour situation gives improvement, indications of the economic condition requires massive injections of capital, which become increasingly difficult to find, as demands on all available resources are made by almost every sector of industry. The government economic policy towards the shipbuilders has regularly been criticized, often intensively, by Construnaves (the association of shipbuilders). The President of this body, Seiior don Francis0 Aparicio Omos. stated, ‘This increase of capital and loan for the three firms which control 86% of shipbuilding is merely not sufficient, since those companies are still losing money. The financing of this sector is such that it is becoming necessary to cover at least 85%~ of the cost of a new building project. One possible measure is to return to the previous interest rate of 8% (this was increased to I I% in November 1977) but it is necessary to add to this step years of grace to the loan repayment conditions.’ There is every indication that the Administration will have to economic efforts to make greater shipbuilding industry salvage their

effectively. to maintain it in suitable conditions. so that, in the event of economic recovery, the installations will still be in workable form for the series production of ULCCs and VLCCs and other vessels. Present production is concentrated on series production of small cargo ships. while the few remaining VLCCs are cotnplctcd in Cadiz or El Ferrol. The criticism is made that instead of these simple types of ships, the yards should specialize in small. sophisticated vessels for specific purposes. At the moment. BAZAN has introduced a prototype multipurpose cargo ship of I5 000 dwt. the ‘Cartago’, and the first unit is scheduled for delivery in January 1070, while the third was launched on 26 August IY78. These have achieved national orders: but to date, no export orders. The most bouyant section of the industry is that concerned with the construction of fishing vessels. Many of the smaller yards in the northwest and north have orders which will maintain their activity for longer periods than those installations which are conceived for the production of VLCCs. The majority view is definitely that ‘small is beautiful’ in connection with fresh orders and hopes for shipbuilding. This is demonstrated by the first important order whch Spain has received from the Spanish firms will USSR. whereby supply a dozen shrimp boats to Russia for $1 I million. This contract was recently signed in Russia between the respective presidents of Sudoimport of Moscow, and Construcciones Navales del Surest SA of Alicante. These first dozen vessels should be finished by 1982. and it is anticipated that they will be the first of a hundredship order to follow this same pattern. Orders of this type are obviously scarce nowadays. However, the USSR seems to be anxious to woo Spain, as it does other newly created democratic nations. This is manifested in increasing Soviet interest in shiprepairing in Spain, especially in the Canary Isles where one of their fishing fleets is based, but also in Cadiz. so that this also alleviates the shipbuilding situation, and wherever possible, yards are accepting orders for repairs. Due to the wage structure and the geographical position of the lberian Peninsular. these offers are often

MARINE

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1979

ReportslConferences repairs have ship accepted, and increased in value from 8200 mpts in 1975 to I0400 mpts for 1977; of the latter figure, 2600 mpts were export deals. In grt, the 1977 figure was IO 152 734 for 2669 vessels treated, of which 713 and 4 172416 grt were foreign ships. Thus the adaptation programme of Spain consists mainly in manpower repairs for new cuts, substituting construction wherever possible, and encouraging the sector to produce new prototypes which may be more acceptable to international taste. A measure of succour has been granted by the unions. In a special reunion, presided over by the Ministry

of Industry and Energy, Seiior don Rodriguez Sahagun, the Agustin Administration, the main companies, and the unions met to sign an agreement for the transformation of the shipyard industry. One of the resolutions of this meeting was to reduce overtime to an absolute minimum, and to achieve job by the provision of permanence unemployment, when a temporary normal wage level would be maintained. This will affect the work schedule of some seven thousand men, as well as the suppliers of the firms concerned. The system will be based on rotation, so that no one person will be out of work for more than six months, nor for under two weeks. This is already applied by

AESA, and includes all personnel, even the Presidente, Setior don Francis0 Landeta, who will accept a 5% cut in salary. Measures will also be taken under this agreement to provide training centres to help workers adapt to other employment, while maintaining the maximum number of posts in the shipbuilding firms. The part has been accepted by all sectors of the industry, and will alleviate some of its many problems.

Robert A. C. Richards, Madrid, Spain

Conferences IWC: increasing complexities 30th

Meeting

of the International

Whaling

Commission,

26-30

June

1978,

London, UK

This meeting was preceded by a special conference on sperm whale stocks held in Tokyo in November 1977. The Scientific Committee had met in Cambridge in the preceding week. All 17 member governments were represented at the 30th Meeting (namely. Australia, Argentina, Brazil, Canada, Denmark, France, Iceland, Japan. Mexico, the Netherlands, New Zealand, Norway, Panama, South .Africa, the UK, the USA, and the USSR); six other governments (namely, Belgium, Chile, Republic of Korea, Peru, Spain and Sweden) sent observers; and there were observers i‘rom 24 international organizations, Including NGOs and intergovernmental bodies such as two regional fisheries commissions, UNEP, FAO, and IUCN (with respect to IUCN, it was noted that both governments and other organizations are represented in its membership; a peculiarity which later caused Japan and Denmark to object to Its being appointed as an adviser to the

MARINE

POLICY

January

1979

Scientific Committee: this dispute was resolved by an agreement that in future IUCN would be appointed ad hoc on the understanding that it would be represented by a qualified scientist). The nongovernmental organizations comprised mainly conservation groups such as Friends of the Earth, Greenpeace, the World Wildlife Fund, etc. and came principally from the USA and the UK. A representative of the Convention On International Trade and Endangered Species also attended. The writers attended as observers for the International Institute for Environment and Development. In admitting so many international observers to plenary sessions and to the Technical Committee, even and allowing them to attend, but not take part in the work of the Scientific Committee, the IWC has come a long way towards opening up its previously private proceedings to public scrutiny. Unfortunately, this liberalization was abused when private demonstrators

who were allowed to make a statement at the final plenary session staged a stormy incident. It is to be hoped that this will not set back the progress achieved, especially since the Commission agreed next year (I 979) to give the Press limited access to the proceedings of the plenary meetings. Opening

statements

The meeting opened with an address of welcome from Mr Bishop, UK Minister of Agriculture and Fisheries, followed member statements from by governments and various observers. Japan stressed that the Scientific Committee had not supported the demand for a moratorium, and asked for ‘improved’ management procedures based, perhaps, on quotas fixed for a term of years. They stated that the Japanese fleet had been reduced from 3 motherships to I: and added that any ‘extremism’ in the IWC might prevent whaling nations still outside it from joining. The Japanese emphasized that they had encouraged non-member whaling states to join, having instructed their industries not to import whale products from non-members. Two Japanese seamen‘s and workers’ union-s pleaded for a continuance of minimum controlled whaling for food and for

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