Urgent investment needed to secure future of Ferguson Marine, MSPs warn
Holyrood's Public Audit Committee highlighted multiple and repeated failings at the Port Glasgow site, including leadership and board instability, inadequate internal audits, serious weaknesses in contractor oversight, and governance failures around exit packages for senior staff.
MSPs found these issues, along with delays and extremely high cost overruns in the building of the Glen Sannox and Glen Rosa, have caused significant reputational damage to the yard.
The committee said urgent investment is now needed to make sure it can be competitive once again. PA Media The report highlighted issues with leadership at the shipyard (Jane Barlow/PA).
The Scottish Government bought Ferguson Marine in 2019 after it was placed into administration.
But it has had problems ever since, with the building of the Glen Sannox and Glen Rosa years behind schedule and multiple times over budget.
The two ships, which were meant to be delivered in 2018, will now cost an estimated £460 million – up from the original price tag of £97 million.
The Glen Sannox set sail near the end of last year but the Glen Rosa has been delayed again until early 2026.
The Public Audit Committee has expressed serious concern over the increased cost and further delay to the second ferry.
It has now called on the Scottish Government to give urgent clarification about where the additional funds are coming from. PA Media Ferguson Marine was brought into public ownership in 2019 (Andrew Milligan/PA).
It expressed concerns about the yard not having any further orders lined up beyond its current contract to deliver the Glen Rosa.
The report said the organisation has failed to meet the standards expected of a publicly funded body and has called on the Government to urgently improve its oversight to address some of the longstanding weaknesses at the yard.
Labour MSP Richard Leonard, the committee's convener, said: 'It is clear to the Public Audit Committee that there has been a long-standing weakness in the management, governance and financial sustainability of this yard.
'That there are currently no further orders raises significant concerns for us about the future of the last commercial shipyard on the Clyde and its workforce.
'This is a state-owned yard and the Scottish Government must do more to ensure that not only is its future secure, but that the MV Glen Rosa can be delivered as soon as possible. PA Media Labour MSP Richard Leonard raised concerns about the yard having no future orders (Andrew Cowan/Scottish Parliament/PA).
'There has to be better oversight and governance of the work that is ongoing.'
Mr Leonard said the committee believes the yard can improve and become competitive again.
He said: 'There is no doubt that the yard has suffered significant reputational damage and that the workers at Ferguson Marine deserve better, the communities waiting for a new ferry deserve better, and the people of Scotland deserve better.
'But it doesn't have to be this way. Our committee believes that the yard can once again be competitive.
'There is no shortage of potential work. With investment, and better oversight, this yard which has a distinctive and proud history can have a distinguished and positive future.'
A Scottish Government spokesperson said: 'The Scottish Government's decision to take Ferguson Marine into public ownership saved the last commercial shipyard on the Clyde.
'We are ensuring the long-term future of the yard and the workforce and will invest up to £14.2 million in the yard over the next two years in order to help it modernise and secure future business.
'Scottish ministers expressed their disappointment and frustration to the Board of FMPG at the confirmation of a further delay and increased estimated cost to deliver the Glen Rosa.
'They also made it clear to the yard's leadership that it must take immediate and sustained action to restore trust, enforce delivery discipline, and bring the project under control.
'This will be delivered alongside the development of the business's future commercial strategy, which is being spearheaded by a new CEO to enable Ferguson Marine to win new business in its target markets.'
Get all the latest news from around the country Follow STV News
Scan the QR code on your mobile device for all the latest news from around the country
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Herald Scotland
2 days ago
- The Herald Scotland
SNP's Kate Forbes leaves big gap to fill on Scottish economy
The MSP for Skye, Lochaber and Badenoch declared she did not want to 'miss any more of the precious early years of family life'. While the decision is entirely understandable, there is no doubting Ms Forbes will be a major loss to the SNP. She has embraced her Cabinet responsibilities energetically, visiting many businesses. Ms Forbes has celebrated the success of Prestwick Airport, owned by the Scottish Government since 2013. However, she has also been up front when the news has been less good. When I interviewed Ms Forbes in June, she highlighted her disappointment at a further delay in the delivery of the Glen Rosa ferry for Caledonian MacBrayne which had been announced in May by Port Glasgow shipbuilder Ferguson Marine, which has been owned by the Scottish Government since 2019. Asked if she had been unhappy with recent progress at Ferguson Marine, in the context of this delay, Ms Forbes said: 'I, of course, was really disappointed with the delay to the Glen Rosa and the budget implications of that delay. And I was very clear in public at the time that I thought it was unacceptable. 'I felt that we need to deliver these vessels for the sake of the islanders, yes, but also because we need to restore confidence in the yard and those delays don't help with the public narrative about the yard, and it's hard enough for the yard to secure work with all of the political noise that goes on about Ferguson Marine.' As has been typical of Ms Forbes, she painted the bigger picture in relation to Ferguson Marine. While voicing disappointment about the Glen Rosa delay, she highlighted the importance of restoring confidence in the shipyard for it to 'succeed and survive'. And Ms Forbes declared she had 'full confidence in the ability of the yard to submit quality tenders' for future work. Shortly afterwards, it emerged Ferguson Marine had won another major contract from BAE Systems for the Type 26 frigate programme. Read more Ms Forbes also said in the interview: 'I would like to think that all parties in the Scottish Parliament want to see Ferguson Marine succeed and survive, which is why we need to build confidence, not knock it.' The point about the need to build confidence is absolutely on the money. And it should surely be in everyone's interests to continue to have a major commercial shipbuilder on the Clyde. Lamentably, however, we can expect the politics around Ferguson Marine to remain febrile. It has been heartening indeed to hear Ms Forbes's positivity about the prospects for Prestwick Airport, which has for years been another political football. She declared in the June interview that Prestwick Airport's work in building new alliances and relationships means the opportunities for the area around it are 'quite remarkable'. Read more Shortly before the interview, Prestwick Airport announced agreements with Air China Cargo and China Southern Air Logistics to operate freighter services between Guangzhou and Prestwick. And not long after the interview, there was further good news for Prestwick Airport when it was announced British aircraft manufacturer AERALIS had selected it as the location for the final assembly of its UK aircraft. AERALIS noted, when this major win for the Ayrshire airport was unveiled last month, that it is 'the only British programme designing and building a light jet aircraft to deliver a replacement for the Red Arrows and for a lucrative international export market'. In June, Ms Forbes highlighted the 'rapid growth' of the aerospace cluster at Prestwick Airport. She appears to have impressed many in the business community, including those who would disagree with her support for independence. And she has stood out as a serious thinker on business and the economy, in contrast to many politicians in the UK who seem to open their mouths before engaging their brains. Ms Forbes has been very forthright about being 'pro-economy' and 'pro-business'. She said in the June interview: 'Our sentiment, my sentiment is pro-economy, pro-prosperity, pro-business. 'And that underpins all of our other objectives. So without economic growth and prosperity, you don't raise the revenue to reinvest in resilient public services. Without a strong growing economy, you can't get to net zero because you have to partner with innovative enterprising businesses to develop the solutions that we need. And then you can't tackle child poverty unless parents in particular have access to well-paid secure employment created in many cases by the private sector. So I see their role as underpinning our other three objectives and my job is to try and make Scotland as successful and as prosperous as possible.' This is surely a reassuring message, not just for the business community but for all of those interested in a prosperous and socially conscious Scotland. First Minister John Swinney also seems to have been well received by many in the business community, in terms of his approach, and has been forthright about the economy being a priority. Unlike some other politicians who have flagged such a priority, his actions have supported his words. This is reassuring as Ms Forbes prepares to leave the political front line, but you would imagine Mr Swinney will be aware there will be a big gap to fill for the SNP.
The Herald Scotland
4 days ago
- The Herald Scotland
Prestwick Airport and Ferguson Marine causes for celebration
Prestwick Airport, owned by the Scottish Government since 2013, has enjoyed a flurry of good news. Last month it unveiled another major success when it announced British aircraft manufacturer AERALIS had selected Prestwick Airport as the location for the final assembly of its UK aircraft. My column last month for The Herald on this win observed: 'As well as offering the prospect of a significant number of jobs of high quality, like the thousands already at the aerospace cluster in and around Prestwick Airport, the news from AERALIS also grabbed the attention because of the Red Arrows (Royal Air Force Aerobatic Team) dimension. 'AERALIS notes it is 'the only British programme designing and building a light jet aircraft to deliver a replacement for the Red Arrows and for a lucrative international export market'.' Prestwick Airport has recently announced agreements with Air China Cargo and China Southern Air Logistics relating to the operation of freighter services between Guangzhou and Prestwick. China Southern began operating four flights a week from Guangzhou to Prestwick on May 16. And, on June 2, Air China Cargo started operating three flights a week. The column concluded: 'It is very pleasing to see a patient, long-term approach at Prestwick Airport bearing fruit, with the huge amount of good news in recent months. We should be very grateful indeed that Prestwick Airport was rescued for many reasons – notably including the economic contribution of the airport and the cluster around it and the valuable employment provided.' Meanwhile, the important boost amid turbulent times for the second asset owned by the Scottish Government was for the Ferguson Marine shipyard at Port Glasgow, in the form of a contract from BAE Systems for the Type 26 frigate programme. Read more My column on this contract win, for The Herald on Sunday on July 13, observed: 'The Ferguson Marine shipyard at Port Glasgow was in the headlines again last week – and it was thankfully good news this time. 'The yard has not had its troubles to seek in recent years, with attention focused on cost overruns and delays on the Glen Sannox and Glen Rosa ferries being built for Caledonian MacBrayne. 'So it was heartening to learn the yard, which provides such crucial employment in Inverclyde, had won a significant contract. Ferguson Marine (Port Glasgow) Ltd last week announced that it had signed a contract with BAE Systems to fabricate three structural components for 'Ship 4 HMS Birmingham', the fourth frigate being built as part of the Type 26 programme.' The column observed Graeme Thomson, the recently appointed chief executive of Ferguson Marine, had made some important points around the award of the work. It noted, in particular, Mr Thomson had declared it 'proves the ability of our skilled workforce to secure new business'. And the column highlighted the fact BAE Systems, which engaged Ferguson Marine previously to build two units on the Type 26 programme, had described its relationship with the Port Glasgow yard as 'productive' as the new contract award was announced. The column went on: 'This positive tone came from Simon Lister, managing director of BAE Systems' naval ships business, who also described Ferguson Marine as 'a key supplier of structural steelwork on the Clyde'. 'And his comments are particularly heartening because they are based on the work Ferguson Marine has done for BAE Systems already, with Mr Lister highlighting the fact the Port Glasgow yard has built two units for the Type 26 programme. This surely highlights the quality of work the yard can produce. This is a very significant positive in the context of all the noise around the Glen Rosa and Glen Sannox contract and given the importance of Ferguson Marine securing new work so, as [Deputy First Minister Kate] Forbes puts it, the yard can 'succeed and survive'.' Read more The column described the BAE Systems contract as a 'very positive development' in Ferguson Marine's journey and concluded: 'Hopefully, Ferguson Marine can now build on this momentum.' Another positive story I have covered in recent weeks is the ambition to create hundreds more jobs at the Methil fabrication yard, as its new owner aims to capitalise on opportunities arising from the offshore wind energy boom. In an exclusive interview, the head of the Methil yard, which was acquired earlier this year by Spanish state-owned group Navantia, revealed hopes of at least doubling the workforce from less than 180 to between 350 and 400 within the next two or three years. Matt Smith also highlighted a possibility the headcount could rise as high as 600, depending on the work that comes into the yard. Mr Smith, who has been at the Methil yard for 12 and a half years under various owners, highlighted 'ups and downs' over this period and described the current trajectory as 'probably the most significant up we have been on with the acquisition by Navantia this year'. He flagged the boost to the local economy when the Methil yard was busy, as well as underlining the scale of the opportunities in the renewables sector and the site's capacity to undertake defence work. Highlighting the scale of planned renewables development and his belief there is '20 years-plus worth of work that is sitting out there', with potential for this to grow, he declared: 'I really genuinely see Scotland playing a big part in this. It has to. The reality is it has to. 'I've stayed with this yard through all sorts of troubles and I'm staying with it now because of the fact I can see the potential for the success of the yard becoming what it used to be and what it should be again.' A column I wrote for The Herald on these plans, after breaking the story about the major ambitions on the jobs front, observed: 'Too many of the stories around Scotland's fabrication yards over the years and decades have been dismal: threats of closure which have often crystallised, job losses, hard times, and so on. There has been so much uncertainty for huge numbers of workers in this sector, at various locations, over the decades. Where there have been hopes of revival, sometimes these have been dashed. 'Much has changed over the decades for the fabrication yards, with a lot of the focus in recent times having been on renewables. And it has been difficult to shake the feeling that the renewables boom has not generated as much as might have been expected for Scotland in contracts and jobs.' However, the column went on: 'Chatting to the general manager of the Methil yard, Matt Smith, and to Abel Mendez Diaz, commercial director of Navantia Seanergies, what offered much encouragement was the detail of the strategy, the scale of the ambition and the positive tone about what could be achieved. It is important to have all of this as the yard looks to the future. 'The arrival of Navantia as owner and the plans and positivity about the future suggest there are grounds on this occasion for genuine optimism.' This article was first published in The Herald's Business HQ Monthly supplement
STV News
4 days ago
- STV News
Police Scotland ‘planning' for US vice president visit as he holidays in UK
Scottish police are thought to be on notice for a visit by the US vice president, who is on holiday in the UK with his family. JD Vance's unconfirmed appearance north of the border would follow president Donald Trump's five-day trip last month, when he hosted Prime Minister Sir Keir Starmer at his golf resorts at Turnberry in South Ayrshire and Menie in Aberdeenshire. Vance is holidaying in the Cotswolds but travelled to the Foreign Secretary's Chevening House retreat in Kent on Friday, where the Republican joined David Lammy carp fishing at the countryside estate. A Police Scotland spokesperson said: 'Planning is under way for a potential visit to Scotland by the vice president of the United States. 'Details of any visit would be for the White House to comment on, however, it is important that we prepare in advance for what would be a significant policing operation.' Vance and his family are thought to be planning a visit to Ayrshire but would not stay at Trump's Turnberry resort, according to Sky News. PA Media US president Donald Trump with Prime Minister Sir Keir Starmer at Trump International golf course in Aberdeenshire. PA Media In Kent, Vance said he had a 'love' for the UK but joked he had committed a diplomatic faux pas as he began his holiday. 'Unfortunately, the one strain on the special relationship is that all of my kids caught fish, but the Foreign Secretary did not,' he said. He described Lammy as a 'very, very gracious host'. Trump's visit to Scotland ended less than two weeks ago, after he met with both Sir Keir and First Minister John Swinney. STV News is now on WhatsApp Get all the latest news from around the country Follow STV News
