Ministers say no extra funding for Ferguson shipyard

Summary

The Scottish government has delivered a ministerial statement on the Ferguson Marine shipyard
The two ferries being built there are now £260m over budget and six years late
Minister Neil Gray says modifications to the vessels demanded by the Maritime and Coastguard Agency have been made
He tells MSPs the government regrets further delays and costs in delivering the vessels
Ministers have turned down a request for extra funding to help modernise the nationalised yard
The estimate for completion of the Glen Sannox is now around £130m and £100m for Glen Rosa
This is an increase of £32m for the Glen Sannox and an increase of £4.8m for the Glen Rosa
Opposition MSPs say there is nothing for workers to celebrate from today's announcements
They warn further investment in the yard is needed if it is to remain operational
A year ago a BBC Disclosure documentary, The Great Ferries Scandal, presented new evidence that suggested the procurement may have been rigged

Live Reporting

Edited by Paul McLaren

Fears for future viability of Ferguson shipyardpublished at 14:03 Greenwich Mean Time 14 November 2023
Calum Watson
BBC Scotland News
Just hours before the ministerial statement, Audit Scotland published its annual review of the shipyard's finances.
The report, external found there was uncertainty around the future financial sustainability of the business.
The only ship orders on the yard's books are for the completion of Glen Sannox and Glen Rosa.
The Scottish government has so far only committed to funding Ferguson Marine for 12 months, until next summer
A five-year-plan agreed by the shipyard's board stresses the need for a pipeline of work and continued investment to improve productivity.
Under the current chief executive David Tydeman, the yard has secured some sub-contracting work from BAE Systems, producing some units for the Type 26 frigates being assembled in Govan.
Image source, Ferguson shipyard
Image caption,
The Ferguson shipyard is hoping to win an order for new small CalMac vessels, similar to MV Catriona which the yard completed on time and on budget.
The yard is also pinning its hopes on winning the contract to supply seven small vessels for the CalMac fleet. Ferguson shipyard has successfully delivered similar vessels on time and on budget in the past.
That procurement is due to start shortly with the winning shipyard likely to be appointed in the third quarter of next year.
In the meantime, Ferguson Marine is hoping for government funding for a new plating line - which prepares the steel plates for a ship's structure - which would improve productivity and put it in a stronger position to win future orders.
After two parliamentary inquiries, what questions remain?published at 13:54 Greenwich Mean Time 14 November 2023
Image source, PA Media
Image caption,
Nicola Sturgeon and former shipyard boss Jim McColl on the day FMEL was announced as preferred bidder
The construction of two CalMac ferries at the Ferguson shipyard in Port Glasgow has become one of the worst public procurement disasters of the devolution era.
Six years late, massively overbudget and still not completed, it has blown the ferry renewal programme off course and left island communities at the mercy of an increasingly unreliable fleet.
Initially seen as a huge boost for the shipyard, the order has been a disaster, leaving the workforce embarrassed by events beyond their control and a proud 120-year reputation tarnished.
Two parliamentary inquiries and an Audit Scotland investigation have tried to get to the bottom of what's gone wrong, but many questions still remain unanswered. Will this upcoming statement go some way to addressing that?.
Background: Ferguson ferries deal whistleblower says evidence 'ignored'published at 13:35 Greenwich Mean Time 14 November 2023
Image source, PA Media
Image caption,
Former First Minister Alex Salmond helped persuade his then economic adviser Jim McColl to rescue the Ferguson shipyard in 2014
A whistleblower who worked on a controversial ferries contract says his evidence to an inquiry was ignored.
George McGregor was procurement manager at ferries agency CMAL when a £97m deal was awarded to Ferguson shipyard. The two ferries are now £260m over budget and six years late.
He told a lawyer's inquiry that senior staff broke procurement rules and the yard should not have been shortlisted.
KC Barry Smith said he investigated within the remit given to him by CMAL.
He insisted his inquiry was independent and thorough, based on documents made available to him, but that he would be prepared to consider any new relevant information.
CMAL said all "relevant information" in its possession was provided to the inquiry and it was "not aware" of Mr McGregor's concerns.
Welcomepublished at 10:24 Greenwich Mean Time 14 November 2023
Image source, PA Media
Image caption,
The Glen Sannox is one of two delayed and overbudget dual-fuel vessels being built at the yard
Good afternoon and welcome to our live coverage of the Scottish government's ministerial statement on the troubled Ferguson shipyard.
The construction of two CalMac ferries at the shipyard in Port Glasgow has become one of the worst public procurement disasters of the devolution era.
The two ferries being built there are now £260m over budget and six years late.
You can watch the statement in Holyrood with us, by clicking on the play icon at the top of the page.
It will begin around 14:20 after topical questions.