Calls for more action to safeguard Ferguson shipyard
- Published
Ministers are facing calls from MSPs to do more to safeguard the future of Ferguson shipyard, including directly awarding a new Calmac ferries order.
The nationalised yard has no more ship orders on its books beyond the long delayed Glen Sannox and Glen Rosa.
Wellbeing Economy Secretary Màiri McAllan told MSPs she would "leave no stone" unturned to help the shipyard.
But she also warned that directly awarding contracts was only legal in very limited circumstances.
The Port Glasgow yard has been dogged by controversy in recent years over problems with the construction of the two large CalMac ferries.
Glen Sannox and Glen Rosa are six years late and four times overbudget, with the yard's former owner and government-owned procurement agency CMAL blaming each other for what initially went wrong.
Costs have risen further since nationalisation in 2019, and are now likely to be in excess of £400m in total.
In a statement to MSPs Ms McAllan said she was disappointed with the latest cost and delivery updates from the current Ferguson management but accepted they faced inherited "legacy issues".
She was also "encouraged" that the first sea trials for Glen Sannox had gone well.
She said she met trade union representatives from Ferguson Marine last week and shared their frustrations at past mistakes.
"I took the opportunity to listen and to give them an assurance that ministers will leave no stone unturned when it comes to securing a future for the yard and shipbuilding on the Clyde," she said.
Ferguson Marine is hoping to win an order to build a new fleet of small vessels for CalMac. Concept design image supplied by CMAL.
SNP backbencher Kenny Gibson suggested a direct award of seven small vessels, similar to ones the yard has delivered successfully in the past, would demonstrate that Ferguson Marine had "successfully turned the corner".
Inverclyde SNP MSP Stuart McMillan also spoke in favour of such a move.
However Ms McAllan sounded a note of a caution at this.
"Direct award is only possible under very strictly limited circumstances under procurement rules. Breaching these rules is not an option in of itself - it could lead to legal challenges, costs and further delays," she said.
The minister was also asked when a decision would be taken on giving the yard money to invest in new equipment that would improve productivity and help it compete on the open market for future orders.
Last November the Scottish government turned down a request for £25m of investment to purchase software and an automated plating line to prepare and cut sections of steel.
Ms McAllan said this proposal could not be accepted because of rules on state aid, but that a revised proposal was expected from the shipyard by the end of the month.
The first sea trials of Glen Sannox have gone well with delivery now expected in late May or June.
Glen Sannox is currently due for delivery in late May or early June but will require weeks of sea trials with CalMac before entering service on the Arran route. Glen Rosa's projected delivery date is September next year, though efforts will be made to have it ready by June.
The ships are the first to be built in the UK capable of running on liquefied natural gas (LNG), but the gas systems have yet to be commissioned, a process that could see further problems emerge.
Scottish Conservative MSP Jamie Greene suggested there might be a case for running Glen Sannox on diesel-only in order to get the ship in service quicker, but the minister said the ferry operator wanted it to be dual-fuel capable.
The cabinet secretary was also asked if an audit had been done on the environmental benefits of LNG, given that delivering the fuel will require two road tankers to make a 962-mile round trip from Kent to Troon each week.
Ms McAllan said dual fuel operation was "widely regarded as being positive for the environment" and would help reduce emissions of various pollutants.
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