Wednesday, September 30, 2009

Aid for Hapag-Lloyd delayed

From Reuters

BERLIN, Sept 30 (Reuters) - The German parliament's budget committee is delaying talks on state aid for container shipping company Hapag-Lloyd due to concerns from all parliamentary parties, sources familiar with the matter said on Wednesday.

It's all a big mystery.

Perhaps there is some concern this is not money well invested by the government.

I think there is reason to be concerned. Same as we have concerns in the U.S. about various bail-outs performed by our government.

Update 11:43 PM
Bloomberg has a more detailed article regarding the problem.
Apparently there is some concern exactly how the money will be spent. The term which was used was "opaque", which is of course, the opposite of "transparent", a term often used.

The petition for aid is “raises serious questions on where taxpayers’ money will be spent, and we need answers quick,” Juergen Koppelin, the Free Democrats’ budget spokesman, told reporters after the meeting. “Hapag has commissioned ships to be built in South Korea, there are plans to construct new buildings, and the list goes on.”

Yes, absolutely. Why do they still have those orders for new ships?

Just yesterday, CMA CGM figured out maybe they should be cancelling their orders - of course, this is because they have run out of cash.

Why should Hapag-Lloyd not be in the same position? Just because the government will give them the money?

click here for Bloomberg article

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