Work on delayed ferry to continue despite it being cheaper to buy elsewhere

Work on the second delayed ferry at Ferguson Marine will continue despite it being cheaper to procure a vessel from another shipyard, a minister has said.

Neil Gray told MSPs that re-tendering the contract for the as-yet-unnamed hull 802 would mean a ferry would not be ready until 2027.

Due diligence work was carried out on the future funding arrangements for the Port Glasgow shipyard, which assessed that the value for money case was met in relation to the Glen Sannox – meaning it is cheaper to complete at Ferguson Marine rather than buying from another yard.

However, the value for money case was not met for hull 802, so the Wellbeing Economy Secretary had to provide written authority for this funding to continue.

Hull 802 is currently expected to be delivered next year and the costs for the two vessels are now around £300 million.

Updating the Scottish Parliament, Mr Gray said the cost overruns were “extremely disappointing”.

Even though it would be cheaper to re-procure the vessel, this would lead to further delays and jeopardise the future of the nationalised yard, he said.

Mr Gray said: “A new vessel could not be deployed until at least May 2027 at the earliest – four years from now, and two and half years from the current delivery timescale.

“I do not consider that is acceptable to ask our island communities to wait this further period.”

He continued: “Put simply, if Vessel 802 was not delivered at Ferguson’s then the very future of the yard, and the hundreds of jobs it supports, would be in jeopardy.”

Conservative MSP Graham Simpson said the minister’s statement was “rather embarrassing”.

He asked how much cheaper it would be to buy a new ferry elsewhere.

Mr Gray said the yard’s chief executive was undertaking a detailed review of the remaining costs, which would be provided to parliament.