Boss of nationalised Ferguson shipyard resigns
The interim boss of the nationalised Ferguson Marine shipyard had resigned for "personal reasons". John Petticrew had initially taken on the role for six months after the firm's board dismissed his predecessor a year go, but had agreed to stay on until Easter.Ferguson Marine, based in Port Glasgow, said it was close to announcing a permanent chief executive to replace him.In a statement it said Mr Petticrew would shortly return to his home in Canada to be with his family, and thanked him for his "demonstrable impact" on the business.
Mr Petticrew, who grew up in nearby Greenock, was a member of the Ferguson Marine board of directors when it unexpectedly sacked chief executive David Tydeman last March, citing "performance" issues. His predecessor had won praise for making progress with the long-delayed CalMac ferries MV Glen Sannox and MV Glen Rosa, but found it difficult to accurately forecast delivery dates or final costs. Under Mr Petticrew's stewardship, several more short delays were announced but Glen Sannox was finally delivered in November and went into service on CalMac's Arran route in January.
Ferguson's chief financial office David Dishon thanked Mr Petticrew for his contribution both as interim chief executive and non-executive director, and wished him well for the future. He added: "We remain focused on securing a sustainable and prosperous future for the yard and are very close to announcing a permanent CEO to replace John Petticrew. "We look forward to providing more detail on this very soon. In the meantime, we remain focused on our key priorities, to secure the future of the yard and deliver MV Glen Rosa as quickly and as efficiently as possible."Mr Petticrew recently told MSPs he would gladly take on the role of chief executive of Ferguson's on a permanent basis were it not for his family commitments in Canada. The shipyard has been seeking a permanent replacement for some time, and had appointed a manager from another shipbuilding firm, but the candidate changed his mind and stayed with his employer.
Delivery update
The shipyard is continuing with fitting out work on the second CalMac ferry MV Glen Rosa with an update on delivery dates expected later this month. The ferry had been due to be finished in September but Mr Petticrew said recently there was a risk of further delay. Four new large ferries being built in Turkey for CalMac have also been delayed further - adding to pressure on CalMac which is approaching the summer season with a shortage of vessels. The Cemre shipyard blamed labour shortages and factors such as the war in Ukraine and the Turkish earthquake for the latest delay.The first of the four vessels, MV Isle of Islay, will not arrive before July at the earliest.
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The Herald Scotland
12 hours ago
- The Herald Scotland
ScotGov pulls plug on lifeline subsidy of state ferry fiasco firm
The transport secretary Fiona Hyslop confirmed a "substantial subsidy" was needed to allow it to get a direct uncontested contract to build seven new ferries and secure its future. But she has admitted in correspondence with former community safety minister Ash Regan that that subsidy was not justified and the contract went to an overseas firm. Ms Regan has raised concerns that it was "not the direct award that's the issue it's the unwillingness to put public money behind a public asset". The Scottish Government denied on Thursday evening that any funding had been halted. Ferguson Marine has been dogged with issues with the delivery of lifeline ferries Glen Sannox and Glen Rosa which were due online in the first half of 2018 when it was under the control of tycoon Jim McColl. The last estimates suggest the costs of delivery of the vessels for CalMac will have soared to more than five times the original £97m cost. The shipyard firm which currently employs over 400 staff including over 100 sub-contractors was brought under state control by the Scottish Government at the end of 2019 following its financial collapse under the control of Mr McColl as a row erupted over long delays and mounting costs over the delivery of the vessels. Nicola Sturgeon on a past visit to the yard (Image: PA) The yard's business plan to 2029 assumed that the Scottish Government would sanction a direct award of the small vessel replacement programme. It was an integral part of a plan to deliver a "sustainable, profitable, efficient and competitive yard". After it was decided that the £175m contract would go to a competitive tender, Caledonian Maritime Assets Limited (CMAL), the state-controlled ports owner and ferry procurer declared in March that the job to build seven new loch-class electric ferries would go to Poland. It previously awarded two other ferry contracts worth to £220m to Cemre Marin Endustri A.S (Turkey) - with Ferguson Marine again losing out. The board of the loss-making Scottish Government-owned ferry fiasco shipyard firm has admitted that questions over further financial support from ministers was casting a "significant doubt" on its ability to continue operations and that the contact for the seven ferries was seen as crucial. Meanwhile the Scottish Government said there was an "intention" to give a direct award of a £3.7bn contract to run the Clyde and Hebrides lifeline ferry service from October 1 after a due diligence exercise concluded that there was no legal issue in terms of state aid rules that would prevent that. Ms Hyslop was asked what assessment was undertaken that resulted in it determining that state-owned ferry operator CalMac should be directly awarded the Clyde & Hebrides Ferry Services (CHFS) contract without an open tender process while stating that doing the same for Ferguson Marine with the small ferries contract was presenting a legal risk. She replied that there was "no financial, operational or legal impediment" to implementing a direct award to CalMac. And she added: "Shipbuilding is a competitive global market and a designated sensitive sector under the UK Subsidy Control Act. "For SVRP [the Small Vessel Replacement Programme] it was assessed that a substantial subsidy would have been required to support direct award of the Phase 1 contract to Fergusons, which we did not consider would be capable of being justified. "Given no clear path to subsidy control compliance and the risks of legal challenge, ministers concluded that directly awarding the Phase 1 contract would have been likely to lead to the worst of both worlds - a delay in adding new ferries to the network and the yard ultimately not securing any work from the programme." Her position raises questions over whether it will can win the second phase of the ferry-building programme which involves building three further small ferries. Ms Regan said: ' If the Scottish Government wants to protect commercial shipbuilding then they will need to invest in Scotland to ensure that Scottish ferries are built in Scotland - not Turkey or Poland. "The minister says that directly awarding orders to a Scottish shipyard would've resulted in the worst of both worlds, but right now we already have the worst of both worlds - a nationalised shipyard without government orders that can't win private contracts because of mismanagement at the top. "The response from the Government has revealed that it's not direct award that's the issue it's the unwillingness to put public money behind a public asset. "The longer this saga goes on, and the government fails to invest in its own shipyard, the less likely it is that there will be a future that ensures Scotland retains a ferry building capacity and that can only mean Scottish ministers being willing to pull the plug on the lower Clyde's last commercial shipyard. ' READ MORE by Martin Williams: Why did Scots ministers support award of £395m in ferry contracts to firms abroad Why does ScotGov keep ploughing public money into the ferry fiasco firm? ScotGov raises 'doubt' on CalMac getting new ferry contract from October 'People going bananas': New ferry fiasco hits vital island supplies 'Mismanagement': Public cost of Scots ferry fiasco firm hits £750m amidst overspends The completion of due diligence to confirm vital investment funds worth £14.2m for the yard has already has been held up for nearly a year, even though the money has technically been pencilled in to be awarded over two years. The Port Glasgow yard, which was featured in a Standing up for Scotland SNP video fronted by former First Minister Nicola Sturgeon, is also not certain to get the money it needs to complete a lifeline island vessel at the centre of a "new farce" over soaring delays and costs. The £35m extra public costs for Glen Rosa being asked for by Ferguson Marine is to become subject to further 'due diligence' probing by ministers before a decision is made on whether the extra money will be provided. Glen Rosa was expected to be taking passengers in September - but now state-owned Ferguson Marine has admitted the full sign off and deliver will not be till the summer of next year - between April and July. The Scottish Government had already carried out a 'due diligence' exercise over the provision of a direct uncontested contract to Ferguson Marine to build the ferries but minister previously said it was rejected as it was felt it would be subject to a state aid legal challenge. Ferguson Marine's business plan which assumed that there would be a direct award was approved and submitted in June, last year before being verbally accepted by ministers the following month, when Ms Forbes publicly stated an intention to invest £14.2m to upgrade the yard. The plan was based on the yard remaining under public ownership for at least the next five years. Concerns over the funding of the yard come after the Herald revealed that the public cost of Ferguson Marine had hit up to £750m. A £69m overspend in 2023/24 alone - with costs totalling £131m was said to be in the main due to huge slump in the value of the two fiasco ferries. Financial statements up to 2025/26 had revealed that budgets set by the Scottish Government for Ferguson Marine were overspent to the tune of £210m in the first five years since it was nationalised at the end of 2019 as it attempted to deliver two long-delayed and wildly over-budget lifeline ferries. The costs so far of the beleaguered Inverclyde shipyard firm - which includes sums to cover running costs, wages and a dramatic slump in the value of the stricken vessels - soared to just nearly £710m before the board last month sought £35m more public money from the Scottish Government because of further rises in costs to deliver Glen Rosa, the second of the two ferries. The Ferguson Marine bill is enough to cover the cost of 13 ferries of the type currently being built for Scotland at the Cemre Marin Endustri shipyard in Turkey. Kate Forbes at Ferguson Marine (Image: Andrew Milligan) Ms Forbes has consistently told MSPs that the £14.2m support package over two years to help secure Ferguson Marine's future was in place and in March told MSPs that "hundreds of jobs have been protected only because of the actions of the Government". In March she told MSPs that there needed to be support for Ferguson Marine to be as competitive as possible so that it is able to secure work through a fair and open procurement process and that "that is the reason for the £14.2m investment" She further told them: "The bottom line is that we have agreed to invest £14.2 million in equipment for the yard so that it can compete on a global basis." But officials had consistently confirmed to the Herald that the two-year investment remains subject to the kind of due diligence tests that stopped the yard from directly getting the small vessels ferry contract. That due diligence investigation, which involves passing detailed legal analysis and independent financial and commercial assessments, was supposed to be complete by the Autumn of last year. The board of the loss-making Scottish Government-owned firm has admitted that questions over further financial support from ministers is casting a "significant doubt" on its ability to continue operations as losses incurred by Ferguson Marine have totalled over £2.7m in the last two full years. Ferguson Marine has a 'letter of comfort' which says that "it is our present policy, including with active consideration of the business plan budget and future work of the group, subject to the approval of the Scottish Parliament and in so far as permitted by applicable laws and withing agreed budgets for at least a period of 12 continue to provide support to the group". Despite that, the board in financial papers acknowledged that there [is] uncertainty surrounding the future levels of support due diligence surrounding letters of assurance and investment in the yard [that] indicate a material uncertainty related to events or conditions that may cast significant doubt on the group's ability to continue as a going concern and, that it may be unable to realise its assets and discharge its liabilities in the normal course of business." Ferguson Marine (Port Glasgow) which made a net loss of £1.3m in 2022/23 had previously been concerned about the risks to the business and pointed to a failure to get a committed investment at that point of £25m to support future work at the Inverclyde after the delivery of Glen Sannox and Glen Rosa. Ousted Ferguson Marine chief executive David Tydeman has indicated that even the reduced £14.2m over two year would not itself be enough. Under his leadership, the shipyard which relies on public funds, had stated that a failure to get a committed investment of £25m to support future work had cast "significant doubt" on its ability to continue. Investment was required for a vital new plating line and software to raise productivity and help it compete for future work and it was hoped there would be delivery by December, last year. But that hasn't happened. At the time Ferguson Marine admitted it was not as competitive as other yards that have modern plating lines and modern facilities. As the plating line cannot be installed for nearly two years the yard would not get decent productivity until 2027, even if ordered now, which makes pricing for future work harder. Mr Tydeman was fired on March 26, last year after a tumultuous two years at the helm of the nationalised shipyard after he told ministers there would be even further delays to Glen Sannox and Glen Rosa. Ferguson Marine declined to comment. The Scottish Government was approached for comment at lunchtime on Wednesday but did not respond until 6.41pm on Thursday A spokesman said: "Any reports that funding to the Ferguson Marine shipyard has been halted is completely untrue. Scottish Government funding for the yard is set out in the 2025/26 Scottish budget. "As previously set out, the Scottish Government stands ready to invest up to £14.2 million over two years, subject to due diligence and commercial standards being met, to help enhance yard infrastructure and deliver productivity improvements to help it win more work."
North Wales Chronicle
a day ago
- North Wales Chronicle
Labour MPs push front bench for ‘crackdown' on ‘dodgy' vape and barber shops
Melanie Onn said she 'really must press' the Government for long-term action to tackle these shops, which MPs heard had links to tax evasion and money laundering, and Joe Powell said well-known London streets such as Portobello Road and Notting Hill Gate are 'blighted'. Business and trade minister Gareth Thomas told MPs that the National Economic Crime Centre (NECC) had visited almost 400 premises during a three-week operation in March, freezing several bank accounts. Mr Powell, the MP for Kensington and Bayswater, told the Commons: 'Small businesses across my constituency on our high streets from Earls Court Road to Queensway, Notting Hill Gate and Portobello Road are fed up of being blighted by candy shops, low-grade souvenir shops, Harry Potter shops and, yes, even barber shops, with accusations of VAT and business rates evasion, and even links to money laundering and serious organised crime.' He urged Mr Thomas to say 'what steps' the Government is taking 'to crack down on these operations and create a legitimate level playing field for our small businesses'. The minister replied: 'We've been working with colleagues in the Home Office and the National Crime Agency (NCA) to take action to crackdown on illegitimate businesses that threaten to undermine the legitimate ones that are on all of our high streets. 'In March, the NECC co-ordinated a three-week crackdown against barber shops and other cash-intensive businesses where there were concerns, visiting almost 400 premises, securing freezing orders over a series of bank accounts totalling more than £1 million.' In response, Ms Onn said: 'I really do need to press him because my constituents in Great Grimsby and Cleethorpes are equally as fed up as (Mr Powell) of seeing high streets dominated by dodgy vape shops, unlicensed barbers.' She said 'some of them are legitimate' but asked: 'Is he working closely with the Home Office to try and tackle this blight because I think we probably need a national strategy, not a three-week operation?' Mr Thomas said he recognised 'a concern up and down the country' and added the NCA and Home Office 'are seeking to take action against illegitimate business'. He said a Government commitment to bolster police forces with 13,000 extra officers and special constables, backed by an uplift to forces' 'spending power' of 2.3% per year unveiled in Wednesday's spending review, 'will help'. In a viral video, Conservative shadow justice secretary Robert Jenrick claimed 'weird Turkish barber shops' were 'chipping away at society', along with fare evasion, when he caught passengers allegedly 'bumping' London Underground ticket barriers on camera. 'The state needs to reassert itself and go after lawbreakers,' he said. Sadiq Khan is driving a proud city into the ground. Lawbreaking is out of control. He's not acting. So, I did.👇 — Robert Jenrick (@RobertJenrick) May 29, 2025 Conservative MP Graham Stuart said that if a book which Labour MP for Central Ayrshire Alan Gemmell is writing were a 'political thriller about fighting for small business', then he was 'sure it features five heroes on the front bench opposite, doing everything they can to promote small business'. Ministers laughed and pointed at Tory MPs when Mr Stuart added: 'Readers will ask 'who is the villain of the piece?'' The Beverley and Holderness MP suggested the villain would be Rachel Reeves, 'the Chancellor of the Exchequer who is doing everything possible to undermine business – 276,000 people having lost work since the autumn statement'. He asked: 'When will the ministers, the heroes of this story, fight against the Chancellor who's getting so much so wrong?' Mr Thomas said: 'It's a little while since I've been called a hero by (Mr Stuart) but I'm glad that I've finally had some recognition from him in that regard. 'I don't think the Chancellor of the Exchequer is a villain at all. 'Indeed, I think the spending review that she announced yesterday will help to unlock investment in our high streets and in our small businesses up and down the country – the record investment in research and development, the record investment in infrastructure, and the additional capacity to the British Business Bank will help to unlock billions of pounds of new investment and many more job opportunities across the country.' Labour former minister Liam Byrne later called for 'a plan to cut industrial energy costs now'. The Commons Business and Trade Committee chairman said: 'As our committee pointed out on Friday, the success of the industrial strategy will depend on a plan to cut industrial energy costs now. 'When the industrial strategy is published, will the Secretary of State reassure us that there will be a plan to ensure that UK energy prices are internationally competitive?' Business Secretary Jonathan Reynolds replied: 'The very significant increase in industrial energy prices under the terms of the last government are a significant issue for our competitiveness, and yes, that is something we're seeking to address.'
Leader Live
a day ago
- Leader Live
Labour MPs push front bench for ‘crackdown' on ‘dodgy' vape and barber shops
Melanie Onn said she 'really must press' the Government for long-term action to tackle these shops, which MPs heard had links to tax evasion and money laundering, and Joe Powell said well-known London streets such as Portobello Road and Notting Hill Gate are 'blighted'. Business and trade minister Gareth Thomas told MPs that the National Economic Crime Centre (NECC) had visited almost 400 premises during a three-week operation in March, freezing several bank accounts. Mr Powell, the MP for Kensington and Bayswater, told the Commons: 'Small businesses across my constituency on our high streets from Earls Court Road to Queensway, Notting Hill Gate and Portobello Road are fed up of being blighted by candy shops, low-grade souvenir shops, Harry Potter shops and, yes, even barber shops, with accusations of VAT and business rates evasion, and even links to money laundering and serious organised crime.' He urged Mr Thomas to say 'what steps' the Government is taking 'to crack down on these operations and create a legitimate level playing field for our small businesses'. The minister replied: 'We've been working with colleagues in the Home Office and the National Crime Agency (NCA) to take action to crackdown on illegitimate businesses that threaten to undermine the legitimate ones that are on all of our high streets. 'In March, the NECC co-ordinated a three-week crackdown against barber shops and other cash-intensive businesses where there were concerns, visiting almost 400 premises, securing freezing orders over a series of bank accounts totalling more than £1 million.' In response, Ms Onn said: 'I really do need to press him because my constituents in Great Grimsby and Cleethorpes are equally as fed up as (Mr Powell) of seeing high streets dominated by dodgy vape shops, unlicensed barbers.' She said 'some of them are legitimate' but asked: 'Is he working closely with the Home Office to try and tackle this blight because I think we probably need a national strategy, not a three-week operation?' Mr Thomas said he recognised 'a concern up and down the country' and added the NCA and Home Office 'are seeking to take action against illegitimate business'. He said a Government commitment to bolster police forces with 13,000 extra officers and special constables, backed by an uplift to forces' 'spending power' of 2.3% per year unveiled in Wednesday's spending review, 'will help'. In a viral video, Conservative shadow justice secretary Robert Jenrick claimed 'weird Turkish barber shops' were 'chipping away at society', along with fare evasion, when he caught passengers allegedly 'bumping' London Underground ticket barriers on camera. 'The state needs to reassert itself and go after lawbreakers,' he said. Sadiq Khan is driving a proud city into the ground. Lawbreaking is out of control. He's not acting. So, I did.👇 — Robert Jenrick (@RobertJenrick) May 29, 2025 Conservative MP Graham Stuart said that if a book which Labour MP for Central Ayrshire Alan Gemmell is writing were a 'political thriller about fighting for small business', then he was 'sure it features five heroes on the front bench opposite, doing everything they can to promote small business'. Ministers laughed and pointed at Tory MPs when Mr Stuart added: 'Readers will ask 'who is the villain of the piece?'' The Beverley and Holderness MP suggested the villain would be Rachel Reeves, 'the Chancellor of the Exchequer who is doing everything possible to undermine business – 276,000 people having lost work since the autumn statement'. He asked: 'When will the ministers, the heroes of this story, fight against the Chancellor who's getting so much so wrong?' Mr Thomas said: 'It's a little while since I've been called a hero by (Mr Stuart) but I'm glad that I've finally had some recognition from him in that regard. 'I don't think the Chancellor of the Exchequer is a villain at all. 'Indeed, I think the spending review that she announced yesterday will help to unlock investment in our high streets and in our small businesses up and down the country – the record investment in research and development, the record investment in infrastructure, and the additional capacity to the British Business Bank will help to unlock billions of pounds of new investment and many more job opportunities across the country.' Labour former minister Liam Byrne later called for 'a plan to cut industrial energy costs now'. The Commons Business and Trade Committee chairman said: 'As our committee pointed out on Friday, the success of the industrial strategy will depend on a plan to cut industrial energy costs now. 'When the industrial strategy is published, will the Secretary of State reassure us that there will be a plan to ensure that UK energy prices are internationally competitive?' Business Secretary Jonathan Reynolds replied: 'The very significant increase in industrial energy prices under the terms of the last government are a significant issue for our competitiveness, and yes, that is something we're seeking to address.'
