The arrival of the former president happened precisely when the state is going through an important moment regarding the future of the economy, especially in relation to the naval sector and fuel prices.

Former president Lula has been visiting cities in Pernambuco these past three days. Wherever he went, he held public events, gathering supporters and thousands of militants, with heated speeches that returned all the time to the time when the Workers' Party ruled Brazil. He praised the social programs created during his administration, but he also criticized the administration of Jair Bolsonaro and strengthened his ticket in the state, which has been suffering internal divergence. However, nothing consistent was said about the naval industry, even one of the acts taking place precisely in the auction day at Atlântico Sul Shipyard.

The Atlântico Sul Shipyard is located in the Port of Suape, located in the municipality of Cabo de Santo Agostinho, in the metropolitan region of Recife. Between 2007 and 2014, it generated more than 11 jobs. At that time, the state of Pernambuco was pointed out as a situation of almost full employment (when the unemployment rate does not exceed 6%).

The entire Port of Suape was home to more than 65 male and female workers from various parts of Brazil. In 2021, the Atlântico Sul Shipyard carried out repair services on 11 vessels, which generated revenues of R$ 65,4 million, of which R$ 26,6 million net. Since 2020, EAS has been in judicial recovery, as it is up for sale through an auction to pay part of the BRL 1,4 billion in debt with the National Economic and Social Development Bank (BNDES).

Despite not mentioning the naval industry, in the past, the sector earned Lula many votes. In 2003, the first year of the PT's management, the sector was heated up with the Petrobras Maritime Support Fleet Renewal Program (Prorefam), in addition to the National Oil and Natural Gas Industry Mobilization Program (Prominp) and the Fleet Modernization and Expansion (Promef). Two years later, naval began to generate a significant number of jobs, including at the Atlântico Sul Shipyard, as mentioned, but later succumbed to the Lava Jato crisis.

Lula criticizes ICMS reduction on fuels in Pernambuco

In total, Lula visited five municipalities in Pernambuco: In addition to the capital Recife, he was in Olinda, where the main rally took place on Thursday (21); Serra Talhada, in the hinterland; and in the wild, landed in Caetés and Garanhuns, where he criticized the complementary law 194/2022 which limits the collection of the Tax on Circulation of Goods and Services (ICMS) on fuels, proposed by the government of Jair Bolsonaro.

“The president harmed the governors with this ICMS reduction, he will lack money for education and health so he can reduce the price of gasoline by R$ 0,69”, said Lula. “He (Bolsonaro) could have had courage. With the same pen that Pedro Parente (president of Petrobras who instituted the Import Parity Price policy) increased gasoline without asking anyone, he should reduce gasoline without asking anyone, ”she added. 

Allies would have been under pressure to reduce the tax in Pernambuco

The Complementary Law already in force prohibits states from charging a rate higher than the general ICMS rate, which varies between 17% and 18%, on fuels, in addition to electricity, communications and public transport.

During the process, Bolsonaro vetoed devices that provided financial compensation for the states – which may suffer a loss of revenue with the tribute – but used the reduction in fuel prices to benefit his image, and, consequently, taking responsibility for himself over the high fuel costs and putting it on the backs of governors.

For the leader of the PE government in the Legislative Assembly of Pernambuco, Isaltino Nascimento (PSB), the reduction of ICMS on fuel is only of interest to the federal government, through the forthcoming October elections.

“This electoral attitude of President Bolsonaro directly attacks investments in our state. The reduction of ICMS in Pernambuco will reflect in less funds for cities to invest in health, education, infrastructure and public safety, for example”, says the state deputy.

Already the leader of the federal government in the Senate, Fernando Bezerra Coelho (MDB), who is from Pernambuco, promises to put even more pressure on the governors for a further reduction. “We will press for this reduction to reach the national average of 80, 90 cents,” he said in an interview with CBN radio.

“It is enshrined in the constitutional text that ICMS on essential services and products cannot exceed 18%. This is a great achievement, which will encourage business and investments and allow more income to be left over so that Brazilians and Pernambuco can increase their consumption”, concluded the senator.

Lula spoke about oil in a generic way

It was in Recife where the Petrobras and Eletrobras were remembered by the former PT president. With a tone of promise of state interventionism, Lula said that he will re-discuss these state-owned companies. “The State must have instruments for its action”, he said. “This Brazil that you dream of, we have already built, it is possible. We are going to recover this country”, he said.

The pre-candidate for the government of Pernambuco, Danilo Cabral (PSB), called on the PT that, if elected, cancel the privatizations desired by the right-wing neoliberals.

A highly cherished platform between allies and few ideas for the economy of Pernambuco

Despite the same ideas and occupying the same platform as Lula, Danilo Cabral is not unanimous in the local PT, and for this reason he was booed whenever his name was mentioned at events.

Most PT members in Pernambuco support Marília Arraes (SD). Until recently, she was from the PT, but she decided to leave the party due to the proximity that the acronym has come to have with the PSB.

The socialists today have strong ties with the PT – even Geraldo Alckmin is Lula's deputy – but they themselves supported Dilma's impeachment and have already dueled with the PT in previous elections.

Lula's will in Pernambuco is to associate the PSB candidate with the image of the former local governor, Eduardo Campos, who was national president of the socialists, and who while he was at the head of the government, at the same time as the PT's federal management, promoted gains recognized by the majority of the population of Pernambuco, especially in job creation, at the height of the naval industry in Pernambuco.

In other words, his visit to Pernambuco served “only” to resolve political issues. And now it remains to be hoped that with the beginning of the electoral campaign, we will be able to hear firm proposals for the naval industry, oil, fuels and other sectors of the economy.

Union wants candidates to present a consistent policy for the shipbuilding industry

The National Union of the Naval and Offshore Construction and Repair Industry (Sinaval) presented its proposals for promoting the sector and increasing competitiveness, which will be forwarded to the presidential candidates.

Sinaval points out that, between 2000 and 2013, the local content policy, new orders from Petrobras and the increase in offshore production caused the sector to advance, on average, 19,5% per year, according to data from the Instituto de Applied Economic Research (Ipea).

As proposals for sector development to be presented to candidates for the Presidency of the Republic point to the need to encourage local content and exemptions to gain competitiveness.