‘Big questions’ for Government on future funding for Ferguson, Lib Dems say

The Scottish Government has “big questions” to answer over the future funding of Ferguson Marine, the Liberal Democrats have said.

The Government-owned shipyard was provided with a “letter of comfort” last year, guaranteeing funding to keep its gates open until the end of next month.

In a letter to the Public Audit Committee, Deputy First Minister Kate Forbes said work on a new letter of comfort was under way, but its duration remains unclear.

Scottish Lib Dem MSP Jamie Greene urged Ms Forbes to lay out how long the yard can expect to be supported.

The Government has consistently said it wants to return Ferguson Marine to the private sector eventually, but the yard will likely require new orders after the late and over-budget Glen Rosa ferry to attract attention.

Mr Greene said: “The imminent expiry of these assurances raises big questions for the Deputy First Minister and the SNP Government, a Government which has managed to obliterate Scottish shipbuilding through a series of fiascos.

“Ministers are fond of saying they want a future for the yard, but there is a lot of uncertainty about what awaits Ferguson once the funding stream runs out.

“Serious questions remain over the future of the yard as it has been snubbed for contracts and the SNP are yet to agree for how long they will fund the business as a going concern.

“The Glen Rosa is already severely delayed and promised Government investment in the yard has fallen by the wayside. The SNP have sent votes of confidence in Turkish and Polish shipbuilding, but very little in our own.

“The skilled workforce at Ferguson deserves better than a Government that manages to bungle things for them at every opportunity.

“The Deputy First Minister should provide a clearer timeline for when fresh guarantees can be provided and when the yard can expect the promised but as yet undelivered investment it needs to survive.

“She must also explain to taxpayers how large the blank cheque really is when it comes to keeping the doors open without any major new contracts.”

The comments come as the yard continues to fight for new orders after only having secured some fabrication work for the nearby BAE Systems yard, which is building ships for the Royal Navy.

Earlier this week, the GMB trade union, along with local politicians and civic leaders, called for the Government to directly award the contract for the replacement of the Lord of the Isles ferry to Ferguson.

The Government is “actively considering” the move, the First Minister confirmed, though there are concerns about potential legal ramifications.

A Scottish Government spokesperson said: “A letter of comfort is issued annually, providing reassurance to the board that the company’s financial obligations will be met. The next letter of comfort will issue in the coming weeks. This is a standard step which helps the Scottish Government support the work of the Ferguson Marine board.

“The Scottish Government remains fully committed to Ferguson Marine and to delivery of Glen Rosa. The decision to take the yard into public ownership saved the last commercial shipyard on the Clyde and more than 300 jobs.”