The former transport Minister, Derek MacKay has defended his role in the awarding of the contract for two ferries.

The vessels are still to be delivered and are millions of pounds over budget.

Derek MacKay was transport minister when the contract was approved to build the two ferries at Ferguson's shipyard.

However, five years later the ships have not been built, are millions of pounds over budget and the yard had to be brought into public ownership.

An Audit Scotland probe was unable to establish why the £97m order was given to the yard without the usual guarantees.

Appearing before the public audit committee, Mr Mackay said he took his share of responsibility for the "catastrophic consequences" of not completing the ferries on time and within budget, but he added that the failings were not all on him.

But he also said he would not apologise for actions that protected the workforce at Ferguson's.

That's all from the live coverage of the public audit committee, have a good afternoon.

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Mr Mackay insists: "There was no lack of due diligence. There was no lack of inquiring into our options and no lack of effort in trying to find the right thing to do."

The former minister says if the government hadn't nationalised the yard "it would have gone into administration, workers would have been sent home".

He says it was absolutely the right thing to do.

Mr Mackay says it is fair to say there was conflict between CMAL and FMEL.

The former minister says there was a "relationship breakdown" but that there was no letter about resignation from the CMAL board.

He says CMAL were dissatisfied and FMEL was obviously clearly frustrated as well.

"I was trying to navigate a way through this in the interest of taxpayers," he adds.

SNP MSP Willie Coffey asks Mr Mackay about the substance of the assurance he was given to allow him to proceed with awarding the contract.

The former transport minister says he received a “great deal of reassurance” in terms of monitoring arrangements, oversight and contract compliance.

He says there was a mechanism in place to hold the contractor to account, and he was "quite satisfied with the risk analysis I saw”.

That analysis said the risk of delivering the vessels late, or of “poor performance”, was low, Mr Mackay says. “No-one was saying Ferguson's couldn’t build the vessels. The only concern was about the BRG (Builder's Refund Guarantee)."

Mr Mackay recalls that one of the key comments in the submission was that Ferguson's was the “best deal that could be negotiated” and that the yard had a “track record of delivery”.

One member of CMAL said it was ‘one of the best bids we have ever seen’,” he added. "It came out on top, particularly on quality.”

Former transport minister Derek MacKay has told MSPs he takes his share of the responsibility for the failure of the Scottish government to deliver two new ferries.

Mr Mackay told Holyrood's public audit committee that while mistakes were made in awarding the contract for the vessels, he always acted with the best intentions.

The failure to deliver the ships, which are years late and over budget, led to the collapse of Ferguson's shipyard, which was then taken into public control.

Scottish Conservatives MSP Sharon Dowey MSP asks if the decision to award the contract was in any way linked to political calculations or a political timescale.

“In my opinion, no,” says Mr Mackay.

The former transport minister says he doesn’t think there was a political agenda, or that the decision was rushed at all.

There was a "methodical approach" to procurement, he says, and he doesn’t think it was a partisan decision.

“I recognise the failure of it but it was made with the best of intentions,” he says. The decision was about “getting the vessels built in Scotland and ensuring the future of the yard”.

Mr Mackay points out that ministers “don’t ordinarily sign contracts” and it would have been officials from CMAL – who led the procurement process – who physically signed off the contract.

He adds that “of course” he was concerned about an initial lack of a Builder's Refund Guarantee (BRG) but there was mitigation in the submission, with reassurances.

"I considered the advice, I was satisfied with the advice, therefore I informed my private office to proceed," he adds.

Mr Mackay says, according to the auditor general, there were multiple failings.

"I don't think it all rests on me," he adds.

He accepts he was the lead minister and accepts his responsibility.

Mr Mackay says the decision to award the contract to Fergusons was based on the bid and nothing else.

Tory MSP Craig Hoy asks if Mr Mackay is being lined up to be the "fall guy" here.

"Is this operation blame Derek Mackay?"

The former transport minister says he will take his share of responsibility and he will answer robustly for any decision taken.

He says: "I recognise the catastrophic failure at Fergusons to complete the vessels on time and on budget. That is deeply regrettable.

"What I don't regret is protecting the workforce."

Derek Mackay says he does not have the ability to cross-check every document around the decision taken on 8 August.

The former transport minister explains he is not aware of what discussions were taken at cabinet.

Tory MSP Craig Hoy asks if the first minister was actively involved in the negotiations.

Mr Mackay replies he can't speak for how much the first minister knew, adding that he does not know what she was briefed on at the time but he can't imagine she was involved.

Former Transport Minister Derek Mackay begins with an opening statement.

Mr Mackay says: "Of course I take my share of responsibility."

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Earlier this year, the Scottish government said it had found a missing email detailing which minister signed off the controversial CalMac ferry contract.

The government initially said it could not locate the document.

But on 11 May, current transport minister Jenny Gilruth told MSPs that she had some "good news to share with parliament", before going on to say: "The missing document has been found".

The email apparently showed that then transport minister Derek Mackay approved Ferguson Marine being given the contract to build the ferries.

An Audit Scotland report said the ferry deal was approved by ministers without normal financial safeguards being in place.

The report also found that there was "insufficient documentary evidence" about the decision to award the contract - which led to opposition parties demanding to see the "missing" document.

Read more here.

Image source, LEWIS MCKENZIE

Disgraced former Scottish government minister Derek Mackay will now give evidence to the Ferguson Marine inquiry.

Mr Mackay was transport minister when the contract was approved to build two ferries at the Port Glasgow shipyard.

He later resigned from the cabinet after it emerged he had sent more than 100 inappropriate messages to a 16-year-old schoolboy.

• Read more here
• Overdue ferry sets sail for new construction phase
• Ex-minister Mackay defends his ferry deal role

Mr Middleton says it was not strange that the minister signed off on the contract.

He says CMAL was given a letter of reassurance about where financial risks lay, this was not an instruction.

The former chief executive of Transport Scotland says there were issues that required to be addressed but they gave assurances.

He again refutes the claim that Transport Scotland were instructing CMAL.

Mr Middleton explains the risks were reported to Derek Mackay and his boss Keith Brown.

He says a note was given by Mr Mackay to sign off on the final deal.

Tory MSP Graham Simpson asks why ministers ignored the advice from CMAL, but Mr Middleton says they were not ignored.

Image source, Sandy Young

When Ferguson Shipbuilders went bust in the summer of 2014 it seemed the last shipyard on the lower Clyde was heading for oblivion, more than a century after it was founded by the four Ferguson brothers.

But within weeks, in a deal brokered by then First Minister Alex Salmond, a white knight stepped forward in the shape of Jim McColl.

A self-made billionaire, he was one of the most prominent business figures to support Scottish independence ahead of the referendum in September that year.

McColl, who made his fortune transforming the ailing Clyde Blowers into a portfolio of engineering investment companies, was adamant that Scottish shipbuilding could have a bright future.

Investment swiftly followed - the old buildings were demolished and replaced by state-of-the-art fabrication and design facilities.

The workforce at Ferguson Marine Engineering Ltd (FMEL) as it became known, rose from about 70 to 350, including apprenticeships in one of the most socially deprived areas of Scotland.

Read more here.

Mr Middleton explains he did not participate in any discussions with ministers and never met with CMAL.

The former Transport Scotland chief executive says ministers understood that Fergusons came out top of the procurement process.

There are questions over why the contract was awarded to Ferguson Marine despite concerns over its suitability.

These were raised by CMAL (Caledonian Maritime Assets Limited), which buys ferries for ferry operator CalMac. Both organisations are owned by the Scottish government.

Committee convener Richard Leonard asks about the Builders Refund Guarantee and Mr Middleton says it became an issue over time.

The former Transport Scotland chief executive says there was still widespread confidence the yard could build the ships.

Mr Leonard says to Mr Middleton: "The buck stops with you doesn't it?"

Mr Middleton accepts this but stresses he was not in a position to say the contract was unwise or poor value for money. It was still the best bid, he adds.

Read more here

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The former chief executive for Transport Scotland is giving evidence first this morning.

David Middleton tells the committee he has retired from public life, but he fully understands the public concern about the ferries contracts.

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MSPs will begin this morning evidence from David Middleton, former chief executive for Transport Scotland at 9am, before Mr Mackay’s appearance which is currently scheduled for around 9.50am.

The committee papers for the meeting are available here, external.

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The contract for two delayed and overbudget CalMac ferries was approved by ministers without normal financial safeguards, a watchdog has found.

An Audit Scotland investigation, external was unable to establish why the £97m order was given to Ferguson shipyard without such guarantees.

The ships, still being built at the Port Glasgow yard, will be five years late and could cost more than £250m.

Problems have also continued since the yard was nationalised, the report said.

The Audit Scotland report revealed that as recently as January there were still 175 technical, safety or quality issues be resolved - including some that could prevent the issuing of a passenger safety certificate by regulators.

Read more here.

Image source, Getty Images

Disgraced former Scottish government minister Derek Mackay is to return to Holyrood to give evidence to the Ferguson Marine inquiry.

Mr Mackay was transport minister when the contract was approved to build two ferries at the Port Glasgow shipyard.

He later resigned from the cabinet after it emerged he had sent more than 100 inappropriate messages to a 16-year-old schoolboy.

Mr Mackay will appear before Holyrood's public audit committee.

It is running an inquiry into delays and overspends at Ferguson Marine, which is still building two ferries for Calmac's west coast routes.

We're expecting the former minister to begin giving evidence around 9.50am.

• Read more here
• Overdue ferry sets sail for new construction phase
• Ex-minister Mackay defends his ferry deal role

Image source, Robert Perry

Welcome to our live coverage of the public audit committee, external, as it takes evidence from former transport minister Derek Mackay on the controversy over the delayed construction of two CalMac ferries.

The committee will first take evidence from David Middleton, former chief executive for Transport Scotland at 9am, before Mr Mackay’s appearance which is currently scheduled for around 9.50am.

The papers for the meeting are available here, external.