MSPs question government's commitment to Ferguson shipyard

A Holyrood committee has questioned the government's committment to saving the Inverclyde shipyard

The slow pace of investment at Ferguson Marine "raises serious questions" about the Scottish government's commitment to the nationalised shipyard, a Holyrood committee has warned.

Last year ministers promised to invest £14.2m in modern equipment to help the yard win new orders to sustain it once work on the CalMac ferry MV Glen Rosa is complete.

But BBC Scotland News understands only about £600,000 has been handed over so far, and procurement notices for new machinery have lapsed.

In a letter to Deputy First Minister Kate Forbes, Holyrood's Public Audit Committee expressed its "disappointment" at the slow pace of the investment.

The Scottish government nationalised the shipyard in 2019 after a long-running dispute over two dual-fuel ferries saw it fall back into administration, threatening 300 jobs.

Problems have continued under public ownership with MV Glen Sannox delivered years late and overbudget last November, while MV Glen Rosa is still under construction.

Earlier this year the shipyard had hoped to rebuild its reputation by securing an order for seven much smaller CalMac ferries, widely seen as more suitable for the yard's size and capabilities.

However, in March government-owned ferries procurement body CMAL announced that the small vessels contract, worth about £160m, would instead go to a Polish firm which had undercut the Scottish shipyard on price.

Committee convener Richard Leonard said the committee was "disappointed" that there appears to be "little tangible progress" on delivering promised investment which would help the shipyard win new orders.

He wrote: "The committee has also been made aware that while procurement orders were issued for major items required for the yard, it has now emerged that these notices were subsequently withdrawn.

"This further undermines confidence that the promised investment will materialise.

"The slow pace of new investment raises serious questions about the Scottish government's commitment to providing Ferguson Marine with the urgent and sustained investment it needs to move on from the ferries controversy, safeguard its workforce, re-establish its previous reputation and become competitive in a challenging market."

'Ongoing strategic investment'

Leonard also wrote that he was concerned additional funding earmarked for investment could instead be used to cover the rising costs of Glen Rosa - which is due to be handed over by next summer

Such an approach, he said, would "do nothing to address the underlying issues of long-term viability".

He also pointed to the Scottish government's response to the committee's report on Ferguson Marine earlier this year, where Forbes appeared to suggest the new funding would only be provided if the yard is able to secure new work.

"This is precisely the reverse of what is required," the convener wrote.

"As we made clear in our report, it is the committee's view that the yard cannot hope to win new orders without urgent and immediate investment to modernise and improve productivity.

"This circular position risks further weakening the yard's prospects and locking it into further decline."

Deputy First Minister Kate Forbes, who is also economy secretary, said the decision to take Ferguson Marine into public ownership had saved the last commercial shipyard on the Clyde and more than 300 jobs.

"Ongoing strategic investment in the yard will be shaped by a business plan being finalised by Ferguson Marine," she added.

"The plan builds on the yard successfully securing a contract to build components for HMS Birmingham and the launch of Glen Sannox.

"The Scottish government remains firmly committed to supporting the yard to competitively bid for future contracts and to securing a sustainable, long-term future."