Government ‘actively considering’ direct ferry award to Ferguson, says Swinney

The Scottish Government is “actively considering” a direct award of a ferry replacement to Ferguson Marine, John Swinney has said.

The admission comes after politicians and civic leaders in Inverclyde wrote an open letter to the First Minister urging him to approve the direct award of the contract to replace the Lord of the Isles.

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, after missing out on the deal to build seven new smaller ferries.

Speaking to the PA news agency on Monday as he announced a furlough scheme for bus firm Alexander Dennis in the hopes of saving its operations in Scotland, Mr Swinney said: “I’m fully aware of the proposals of a direct award for the successor Lord of the Isles vessel to Ferguson Marine.

“The Government is actively considering those issues and all that’s involved.”

Mr Swinney went on to say there was “huge complexity” in a direct award.

Ministers have previously been reluctant to take such a route in fear of ending up in court due to UK-wide state aid regulations.

But there are circumstances where such a move has been taken, including the direct award of the west coast ferry network contract to the Government-owned operator CalMac.

“What I would ask those who are calling for the Government to take this step is to give us a bit of time and space to go through all of those complexities,” the First Minister said.

He added that he hoped the funding for Alexander Dennis showed the Scottish Government’s commitment to manufacturing jobs in Scotland.

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.

Responding to the First Minister’s comments on Monday, GMB Scotland secretary Louise Gilmour said: “The First Minister asks for more time because of the complexities of making a direct award, but it does not seem so complex for other governments in other countries.

“We have a publicly-owned shipyard that has a long history of successfully building small ferries and a publicly-owned ferry company and island communities that could not need them more.

“This has been discussed for long enough. We do not need more meetings, we need a decision.

“There is no more time to waste because Ferguson’s is losing badly-needed skills and experience with every month that passes.”

The letter – released on Monday – said: “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.

“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.”

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”.

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.