Scottish Government has put Ferguson Marine in ‘catch-22’ situation, says Labour

The Scottish Government has been accused of putting Ferguson Marine in a “catch-22” by withholding investment.

Daniel Johnson, Scottish Labour’s business spokesman, said ministers would not provide the shipyard with money until it had orders – but added that it could not secure orders without the money.

The Scottish Government confirmed in October that only £570,000 of the £14.2 million investment promised to the yard had been invested in 16 months.

She said the rest of the money was conditional on a “robust business case” being made by the board of the nationalised yard.

MSPs were debating a Public Audit Committee report into Ferguson Marine, released in the summer, which found it required urgent investment to secure its future.

During the debate in Holyrood, Mr Johnson said the key to Ferguson’s future was simple: “It just needs orders.”

But he said it needed the Government’s help to do so: “Fergusons need a steady supply of whole ship orders and we have heard the promise of £14.2 million to invest in modernisation but as we have just heard only £500,000 of that has been forthcoming.

“18 months later that is not good enough.

“During that time, the Scottish Government has issued a contract for seven small electric CalMac ferries, but to a Polish firm.

“A Scottish yard employing Scottish workers, owned by the Scottish Government, is losing vital contracts to foreign yards while the Government prevaricates on Investment promised to make the yard competitive.

“This from a party whose mantra is apparently stronger for Scotland.

“That is almost as big a joke as using two ferries as a punch line – it is laughable.

“But it is the catch-22 created by the Scottish Government that it will not provide that money until orders are forthcoming, but it cannot secure those orders without the investment.”

He added that workers at the yard had been “failed time and time again by SNP chaos and incompetence”.

Mr Johnson told MSPs: “So, we call on the Cabinet Secretary to do the following: commit to bringing forward the full £14.2 million as promised; level the playing field for Scottish manufacturers by reforming its approach to public recruitment; and issue a direct reward for the MV Lord of the Isles.

“Anything less risks losing another vital piece of our critical industrial capacity.”

Kate Forbes, the Deputy First Minister, said she recognised frustrations expressed by Parliament, island communities and workers over high-profile and costly delays to the Glen Sannox and Glen Rosa ferries.

She said that Ferguson’s board had taken action in the last year to recruit fresh leadership and strengthen its governance and oversight.

She added: “Shipbuilding is a competitive global market, and any public award – public contract award – must fully comply with procurement and subsidy control rules, or it means it will be the worst of both worlds – no work for Ferguson Marine and ships not being built.

“In conclusion, there is still much to do at Ferguson Marine, but strengthened leadership, firmer governance, targeted investment and clearer strategic planning provide a more stable foundation for the for the yards’ future.”