SNP Ministers Award New Ferry Contract to Ferguson Marine Despite Past Failures
SNP ministers have decided to award Scotland's Ferguson Marine shipyard, which has been embroiled in the ferries fiasco, a contract to construct an additional four vessels. This move involves the direct award of two more CalMac ferries and two marine vessels to the nationalised Ferguson Marine yard located in Port Glasgow on the Clyde.
Securing Jobs Amidst Controversy
The contract is anticipated to provide approximately five more years of work, which will help secure jobs at the Scottish Government-owned shipbuilder. However, this decision has also sparked significant fears of a repeat of the massive cost overruns and delays that plagued the construction of the MV Glen Sannox and MV Glen Rosa ferries.
Concerns have been raised that the direct award by SNP ministers could result in taxpayers facing substantially higher costs compared to a standard procurement process. Additionally, there are worries that regulators might block the award, adding further uncertainty to the project.
Announcement and Ambition
Deputy First Minister Kate Forbes announced the move to MSPs, stating, 'With our proposal to award a four-vessel programme to the yard, we are setting a clear ambition for Ferguson Marine's future.' Under the plan revealed by Ms Forbes, two ferries serving the Sound of Harris and the Sound of Barra in the Western Isles will be directly awarded to the yard as part of the ongoing CalMac small vessel replacement programme. This includes two marine research and protection vessels as well.
However, the move is subject to appropriate due diligence processes to assess viability, ensuring that all legal and commercial aspects are thoroughly examined before finalisation.
History of Delays and Cost Overruns
Ferguson Marine, the last remaining commercial shipyard on the Clyde, has been at the centre of immense controversy following years of delays to two ferries intended for the Isle of Arran. The Glen Sannox, originally scheduled for delivery in 2018, was only completed last year. The Glen Rosa, also due in 2018, is not expected to be handed over until the end of this year.
The total cost for these vessels has escalated to nearly four times the initial £97.5 million contract, highlighting significant financial mismanagement and inefficiencies in the project.
Political and Regulatory Hurdles
Tory MSP Edward Mountain pointed out that evidence suggests building ferries at Ferguson's could cost 20-25 percent more than at other shipyards. He added, 'So effectively by ordering four boats, you would have built five somewhere else.' This underscores the potential for wasteful spending and inefficiency in the direct award process.
Approval from the Competition and Markets Authority is required to finalise the direct award, adding a layer of regulatory scrutiny. Ms Forbes emphasised, 'Any award proceeds following completion of detailed legal, commercial and subsidy control assessments.' This indicates that the Scottish Government is aware of the need for compliance but remains committed to supporting the shipyard despite past failures.
