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Bordans hopes government will not have to bail out "Liepajas metalurgs"

Photo: Evija Trifanova/LETA.
 RIGA, Jan 28 - Justice Minister Janis Bordans (All For Latvia-For Fatherland And Freedom/LNNK) currently cannot assess the situation at the joint-stock metallurgical company  "Liepajas metalurgs" but hopes that the government will not have to act the same as in the case of "airBaltic" and "Parex".

In an interview on Latvian State Radio, Bordans points out that he will visit Liepaja in the near future to become familiar with the situation at the Justice Ministry's institutions and meet with "Liepajas Metalurgs" management and trade union representatives.

Bordans explains that "Liepajas metalurgs" letter, which describes the company's problems, is addressed not only to the prime minister and the welfare minister, but also to the justice minister, and Bordans adds that it is only logical that he has to respond to it.

Bordans declined to comment the company's problems and explained that, even though the company is private, he would not want it to share the fate of "airBaltic" and "Parex".
"It is sad that a Latvian company with a history of 150 years and a significant role in Latvia's economy is experiencing such problems," says the minister.

As reported, "Liepajas metalurgs" workers demand meetings with four government ministers to hear what they have to say on the government's position in preserving Latvia's metal industry, as well as the welfare of those working in the industry, the head of the workers' trade union Janis Grava told the business information portal "Nozare.lv".

"Taking into account the situation that has formed due to the Latvian government's decision for companies to be obliged to purchase a portion of green energy, and that the price of this energy continues to rise rapidly and uncontrollably, this has begun to threaten the existence of the metal industry in Latvia. Thus, the 2,300 employees of "Liepajas metalurgs" demand a meeting in Liepaja with Economy Minister Daniels Pavluts (Reform Party), Justice Minister Janis Bordans (VL-TB/LNNK), Welfare Minister Ilze Vinkele (Unity) and Finance Minister Andris Vilks (Unity) to hear their explanations on the government's stance on preserving Latvia's metal industry, as well as the welfare of those working in the industry," Grava emphasized.
"Liepajas metalurgs" has more problems than just payments to the feed-in tariff system, however, these problems can be solved, Welfare Minister Ilze Vinkele (Unity) told LETA after a meeting with "Liepajas metalurgs" trade union and shareholder representatives last week.

LETA also reported, two weeks ago, the board of "Liepajas metalurgs" decided to temporarily cease payments to joint-stock power utility company "Latvenergo's" feed-in tariff system, which acts as a support mechanism for electricity manufacturers, the company's board chairman Valerijs Terentjevs said.
leta.lv
28-01-2013
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