First Minister urged to award ferry replacement contract to Ferguson Marine

Politicians and civic leaders in Inverclyde have urged First Minister John Swinney to directly award a ferry replacement contract to Ferguson Marine.

The Government-owned shipyard is currently hunting for more work after the completion of the long overdue and over-budget Glen Rosa, which is set to be handed over in the second quarter of next year.

Ferguson missed out on the contract for seven smaller vessels earlier this year, and an open letter is now calling for the replacement for the ageing Lord of the Isles to be built in Port Glasgow.

The letter was organised by the GMB trade union and signatories include its Scotland secretary Louise Gilmour and Inverclyde Council leader Stephen McCabe, along with SNP MSP Stuart McMillan and leader of the SNP on the council, Chris Curley.

Labour MSPs Neil Bibby and Katy Clark have also signed on.

“The direct award of the contract to replace one of Scotland’s most famous ferries will help secure the future of Ferguson Marine and allow it to rebuild after a bruising decade,” the letter said.

“Responsibility for the delayed delivery of the two ships most recently built there can be debated but the skilled and committed workforce is entirely blameless.

“Those workers only want to restore their yard’s former reputation for excellence and deserve that opportunity.

“Fergusons has built ships for more than a century – including a third of CalMac’s current fleet – and, until recently, its history was one of achievement.

“The Clyde’s last non-naval shipyard can, with support and sound management, achieve again.”

The yard has been mired in scandal since it was rescued from administration by the Scottish Government in 2019 amid issues in the building of the Glen Rosa and its already-launched sister ship the Glen Sannox.

The original £97 million cost for the two vessels to serve the Isle of Arran is believed to have quadrupled.

Bosses at the yard are trying to focus on the future and secure more work to ensure the last commercial shipbuilder on the once-burgeoning Clyde remains open.”It has been and remains a foundation stone of the Inverclyde economy, creating and sustaining high-quality jobs and apprenticeships for generations,” the letter said.

“The relentless criticism and speculation surrounding the yard’s future is corrosive, however, and that uncertainty could, and should, be dispelled by the direct award of this contract.”

But UK yards, the letter added, will always struggle to compete with their overseas counterparts due to higher levels of state subsidies and lower wages driving down costs abroad, while the boost to the Inverclyde area of another contract is “incalculable”.

The Scottish Government has so far resisted calls for a direct award of contracts to Ferguson, fearing such a move would fall foul of state aid regulations, leaving the decision open to legal challenge, something Deputy First Minister Kate Forbes has described as “the worst of both worlds”.

Ferguson Marine’s new chief executive Graeme Thomson said that without the contract for the Lord of the Isles, the yard would “struggle”, calling for the direct award at a meeting of the Scottish Affairs Committee at Westminster in July.

A spokesman for Transport Scotland said: “Shipbuilding is a competitive global market and any direct award of a public contract must comply with procurement rules and be capable of withstanding legal challenge.

“Ministers consider vessel contracts at an appropriate time on a case-by-case basis to determine whether any might legally be open to direct award and also review potential community benefits.

“Under public procurement and subsidy control rules, direct award of public contracts is only possible in strictly limited circumstances.

“We are currently considering the business case and next steps in relation to the Lord of the Isles replacement and will confirm these in due course.”

A Transport Scotland spokesperson said: “Shipbuilding is a competitive global market and any direct award of a public contract must comply with applicable procurement and subsidy control rules and be capable of withstanding legal challenge.

“Ministers consider vessel contracts at an appropriate time on a case-by-case basis, including the Lord of the Isles, to determine an appropriate and lawful route to market and also review potential community benefits. Under public procurement and subsidy control rules, direct award of public contracts is only possible in strictly limited circumstances.

“We are currently considering the business case and next steps in relation to the replacement for the MV Lord of The Isles and will confirm these in due course.”