• The first minister reiterated her "deep regret" over the ferries contract
• Both leaders of the Scottish Tories and Scottish Labour attacked the ministers' handling of the contract for two new CalMac ferries
• The 2015 deal was approved despite concerns from ferries agency CMAL about the lack of the normal financial safeguards
• After a series of problems, the ferries will now be five years late and could cost the taxpayer more than £250m.
• Douglas Ross called the deal "catastrophic" for taxpayers and Anas Sarwar said the "waste of public money" did not end with the ferry contract, citing the turnaround director's pay

• Ms Sturgeon said delays and cost overruns were a "matter of deep regret"
• The first minister denied the nationalisation of ScotRail on Friday would lead to "CalMac on wheels" insisting tomorrow will be a "significant milestone"

That's all from the live page today. Join us again next time.

Image source, Getty Images

Conservative MSP Graham Simpson asks what "immediate improvements" the government plans to deliver when it takes control of ScotRail on Friday, suggesting it could become "CalMac on wheels".

The first minster says services will continue as normal tomorrow to provide "reassurance" to passengers.

She says rail staff, passengers and communities will have a chance to contribute to the future vision of the railway.

Ms Sturgeon lists stations that have been, and will be, reconnected to the railway.

"We've taken action to keep rail fares down," she adds, saying ScotRail fares are on average 20% cheaper than in England.

Image source, Science Photo Library

Labour MSP Pam Duncan-Glancy says the Royal College of Nursing has reported record vacancies in nursing in Glasgow and spending on bank and agency staff has risen to £76.5m.

She asks what new action the first minster will take to address this crisis.

Ms Sturgeon says the health secretary met the RCN on Wednesday and they were working to "support recruitment" which is "very, very challenged at the moment".

But she says overall nursing and midwifery staffing was at a record high.

Tory MSP Sue Webber turns to another "deeply troubling set of cancer statistics".

Ms Webber asks the first minister what steps her government will urgently take to restore 10 years of missed targets.

The first minister points to £10m funding for this year and £10m for the coming financial year.

Image source, Reuters

SNP MSP Gordon Macdonald asks if Nicola Sturgeon backs his call to use the empty MoD homes in his Edinburgh constituency for Ukrainian refugees.

"The humanitarian crisis here, and the scale of it, means that it is important all housing options are fully explored. So yes, I think that MoD housing should be, must be, part of this process," replies the first minister.

Mr Sarwar says the deal was a PR exercise to protect Ms Sturgeon's job and that of then finance minister Derek Makay. He asks why is was acceptable that people were paying the cost of her government's failure.

Ms Sturgeon replies: "The contract and the experience of that is deeply regrettable. What is not regrettable is saving the shipyard and... the jobs of those who work in it."

Image source, PA Media

Ms Sturgeon says she does not think the "experience of this contract has been acceptable", but the focus now is to get the ferries completed and secure the future of the shipyard.

"We should not lose sight of the fact that but for government intervention this shipyard would no longer be operational," she says.

Four hundred people are employed there, she adds.

"£3,000 a day? Were you signing Lionel Messi?" Mr Sarwar asks, to laughter in the chamber. "Who is the first minister kidding?"

He points out that the £2m paid to Mr Hair was to turn around the yard, but the ferries have still not been delivered.

Mr Sarwar says the emails he has obtained says government advisers recommended a decent pay package "so that life wasn't 'unnecessarily painful' for him while he swapped Hampshire for Port Glasgow".

Ms Sturgeon replies that she doesn't set the "market rates for what people are paid".

She says there is new chief executive who has advised parliament on updated timescales and costs for the ferries, and adds that parliament will continue to hold the government and the company to account.

Anas Sarwar, leader of the Scottish Labour party, begins showing emails regarding the shipyard, obtained by freedom of information requests.

He says Tim Hair, turnaround director at the yard appointed in 2019 from a shortlist of three, was paid £3,000 per day plus expenses, and Nicola Sturgeon raised no objections.

"As people across Scotland tighten their belts, can the first minister explain why she thought it was right to pay Tim Hair over £2m, meaning that he earned in just 11 days what the average Scot earns in a year," he says.

The chief executive of the yard and CMAL have both endorsed the final cost estimates, Ms Sturgeon replies.

The first minister reiterates her "deep regret" but points out there are 462 people in Ferguson's shipyard who have employment thanks to the actions of her government.

Douglas Ross argues this has" become a sign of this government's incompetence"

He adds the government has struck a deal "that has been catastrophic for Scottish taxpayers".

Would the first minister sign the same deal all over again?, he asks.

"Obviously we would not repeat what has happened," replies Ms Sturgeon.

Mr Ross says CMAL knew this was a bad deal and was opposed to the deal.

He asks if the first minister can guarantee the final bill will not be as much as £400m.

Image source, PA Media

Ms Sturgeon says that in terms of the refund guarantee there was a failure on the part of FMEL to offer it in full.

The first minister says a number of steps were brought in to mitigate this.

She points out there was then a requirement for ministers to take a decision on a balance of judgement.

The paperwork makes clear that CMAL had concerns but there was also a view it was the best deal that could be struck with FMEL.

"Lessons are being learned, have been learned and will be learned," she adds.

Jim McColl fallout with governmentpublished at 12:11 British Summer Time 31 March 2022

12:11 BST 31 March 2022

Glenn Campbell
BBC Scotland Political Editor

Jim McColl was once an economic adviser to the Scottish government and backed the "yes" campaign in 2014.

He has since changed his mind on independence and has now spectacularly fallen out with SNP ministers over the CalMac ferry order placed with his shipyard.

He accuses them of rushing the contract for political purposes and conducting a "fabulous propaganda exercise" to blame his team at the Ferguson yard for huge delays and cost overruns.

Economy Secretary Kate Forbes has hit back, denying political motivation and accusing Mr McColl of "shifting the blame"to deflect from construction problems on his watch, before nationalisation.

So far, so messy. But there's more. Mr McColl denied signing the original contract. However, the BBC has seen an unredacted copy of this document and it seems that he did. His signature appears alongside that of the then chief executive of ferry company CMAL, Tom Docherty.

The Scottish government probably hopes this contradiction casts doubt on the credibility of some of Mr McColl's other claims.

It also draws attention away from another key question: why did the Scottish government decide to allow the contract to be signed, when CMAL had advised that is was too risky?

Mr Ross points out that the first minister did not mention the islanders who have been waiting for years for these lifeline services.

The Scottish Conservative leader says the government waived a crucial safeguard - the refund guarantee.

He asks if the first minister accepts "the risks were too high and this was a bad deal".

The first minister says she thinks it was right for the Scottish government to protect and save jobs and to protect the Ferguson Marine yard.

Ms Sturgeon adds that the delays and the cost overruns are a "matter of deep regret".

Image source, CMAL

Businessman Jim McColl has said he would not have agreed a £97m contract to build two CalMac ferries if he had known the extent of opposition to it.

The 2015 contract was approved by ministers despite concerns from their own ferries agency CMAL about the lack of the normal financial safeguards.

Mr McColl claims the deal with Ferguson shipyard was rushed through "for political capital".

The Scottish government insists the deal was done to save hundreds of jobs.

After a series of problems, the ferries will now be five years late and could cost the taxpayer more than £250m.

Last week a damning report, external by Audit Scotland said it was unable to establish why the order was given to Ferguson without a normal builders refund guarantee because the decision had not been fully documented.

Read more here.

Douglas Ross gets proceedings under way by asking about the ferries contract.

The Scottish Conservative leader asks: "Does the first minister accept she has made this yard iconic but for all the wrong reasons?"

Image source, Reuters

Good morning and welcome to our live coverage of First Minister's Questions from Holyrood, on Thursday 31 March 2022.

Nicola Sturgeon will receive her weekly grilling from opposition leaders from about 12:00.

We will bring you all the latest developments and analysis here, and you can watch the session by clicking on one of the tabs above.