Recently a registered letter was sent out from Astilleros Mallorca to service and supply companies that conduct business in their yard.
The letter refers to ´discounts´ which is what these outside companies and individuals pay to the yard to work inside.
The new rates are 10% on materials and parts and 15% on labour charges. The letter explains that this has been inevitable because of increases in costs, particularly a 300% increase in insurance premiums.
Astilleros have stated that the insurance coverage on both their employees and outside contractors is now thirty million Euros but sceptics have inferred that the premium must have been greatly influenced by the yard´s ´lifting´ accident involving "Destiny" and that most contractors have their own insurance.
It has been pointed out by outside companies that this hike in ´discounts´ is very difficult, if not impossible, to absorb and will inevitably have to be passed on to the client, the yacht owner.
In the current economic climate it is thought that it can only damage Mallorca´s reputation and competitiveness in the international yacht refit and repair market.