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The Herald Scotland
04-08-2025
- Business
- The Herald Scotland
Row over £17.6m of public cash spent on Glen Prosen sporting estate
It comes amidst continuing concerns over whether [[Scottish Government]] is investing enough millions into its own shipyard company Ferguson Marine to keep it functioning after it delivers the last of two much delayed and wildly overbudget ferries Glen Rosa. There has been criticism that after 32 months there has been no management plan for the site. Under new Land Reform legislation a failure to produce such a plan would result in a substantial fine. READ MORE: 'Justice in the dock': UN probes Scots judge-led body's 'breach' of international law Enough is enough: 50 Scots councils seek ministers summit on green energy 'wild west' 'Appalling': Hundreds of Scots evicted from council homes despite ScotGov ban The Scottish Government hoped that the legislation would provide communities with more say on decisions relating to the ownership of land. It came as concerns had been growing over the rise of the phenomenon known as Green Lairds. This new generation of landowners are accused of inflating the market and pricing out community groups in the rush to offset damaging emissions. The bill as amended which is still to be passed details a maximum £40,000 fine for failure to comply with community engagement obligations for large land holdings, which includes land management plans. Among other things, the plan is meant to set out what the long term vision is for the land and how it contributes to achieving the net-zero emissions target, including increasing or sustaining biodiversity. FLS bought the 8,700 acres of land with ten estate buildings using the Scottish Government's fund for woodland creation. When the estate, north of Kirriemuir which sits in one of the five highland glens of Angus, was bought it ceased to be run as a sporting estate having previously offered grouse-shooting, deer stalking and salmon fishing. Owner Robin Batchelor approached several potential buyers after deciding to offer it for sale. And the Scottish Government admitted that 'off-market and confidentiality arrangements imposed by the seller' meant FLS could not consult with the local community before the deal was done. Ministers said after being quizzed in September, last year - two years after the purchase - that there was an intention to set out a management plan and that the acquisition provided opportunities for landscape restoration. It was stated that there were plans to create new woodland and montane scrub, restore peatlands and rivers, improving biodiversity and ensuring resilience to climate change. They said last year that had been 20 months of preparatory work including carrying out ecological surveys to better understand the landscape and that a land management plan would eventually be produced. Edward Mountain (Image: George Munro) Among the critics is Conservative Highlands and Islands MSP Edward Mountain who is also convener of the parliamentary net zero, energy and transport committee who says that the purchase has been "veiled in a the cloak of 'commercial confidentiality' with every attempt to winkle out the details of the purchase rebuffed". He says all that they have been told is that the justification for the purchase "was because the land was of strategic importance". He has called on ministers to present the justification that was made for the purchase of the estate so that it could be understood what 'strategic importance' was. He said: 'All we know is that the purchase is 'strategically' important, and that the monies came from the Scottish Government's fund for woodland creation. "It is unacceptable that, 32 months later, there has been no justification of the purchase. "Under the proposed new Land Reform legislation – as introduced by the [[Scottish Government]] – the fact that the estate has not yet produced a management plan would be considered unacceptable, and Forestry and Land Scotland would be subject to a substantial fine. I believe this to be fundamentally hypocritical. 'I have asked the Scottish Government to provide me with details regarding the purchase and future of Glen Prosen. I very much look forward to receiving this information, and hope that it might clarify the true intention behind the purchase of 3,500 hectares of land.' The Scottish Government said that consultation on a land management plan for all the iconic Angus glens, including Glen Prosen closed in April with the final version due to be submitted for approval in the Autumn. Ministers say it will set out plans for "extensive new native woodland creation, peatland and river restoration to help recover wildlife, lock up carbon and create landscapes that people can enjoy and benefit from". Three years ago an analysis by the Scottish Land Commission, an official body set up to reform land ownership found that the majority of Highland estates that changed hands in one year were sold in secret, and nearly half went to absentee owners rushing to buy rural land for environmental reasons. It found almost two-thirds of the deals were done in secret and half of the estates were sold to corporate bodies, investment funds or charitable trusts. Nick KempeNick Kempe, of campaign group Parkwatch Scotland has said that the purchase was initially unheralded with no news release on their plans to let people know what was going on. "It isn't a particularly special place. There are more important areas of land to buy," he said. "The Scottish Government hasn't given a justification for this. "The most important thing they could have done is reduce deer numbers and they aren't doing that. "There does not seem to be a coherent strategy. From a land perspective, it doesn't make sense. "It has been one total farce. They have no idea after all this time or sensible plans over what to do with it. "Without that, why would you buy it?" Land reform secretary Mairi Gougeon said FLS was working closely with the Farming Opportunities for New Entrants Group to look at opening more land up to new farmers – including opportunities in the Angus Glens – adding to the 4,000 hectares already provided on land it manages. Mairi Gougeon (Image: Alan Peebles) She said: "FLS acquired Glen Prosen to demonstrate how land in public ownership can help us tackle the key challenges of climate change and nature loss, whilst critically encouraging access to land and creating new jobs and opportunities. New native woodland will be created, peatland will be restored, helping to recover wildlife, reduce flood risk and create landscapes that people can enjoy and benefit from.' FLS says that its broad aims on purchasing the estate were "in line with the Scottish Government's commitment to nature recovery, climate resilience and people's health and wellbeing". They say that it forms the centre of approximately 26,000 acres of public land, giving them the opportunity "to work with other public bodies and neighbouring landowners to achieve landscape-scale habitat restoration in the Cairngorms National Park".
The Herald Scotland
19-05-2025
- Business
- The Herald Scotland
Public cost of Ferguson Marine hits £750m amidst overspends
The costs so far of the Inverclyde shipyard firm - whose overriding aim has been to deliver the ferries - includes sums to cover running costs, wages, a dramatic slump in the value of the ships and the escalating capital costs of producing the vessels. It soared to nearly £710m before the board last week sought £35m more public money from the Scottish Government because of further rises in the price to deliver the second of the two ferries, Glen Rosa. The Ferguson Marine bill is enough to cover the cost of 13 ferries of the type currently being built at the Cemre Marin Endustri shipyard in Turkey. It is enough to provide over 3,400 settled affordable homes in Scotland's housing emergency. It comes as analysis from ferry operator CalMac showed total maintenance and repair costs to the ageing lifeline fleet totalled £252.2m with annual costs rising from £14.8m in 2014–15 to £41.8m in 2024–25 — an increase of 183%. Scottish Conservative MSP Edward Mountain, who is convener of Holyrood's transport committee said: 'I despair that the Scottish Government's business sense and management is so appalling that they can't even recognise they've made a mistake.' Katy Clark, who is Scottish Labour's shadow community safety minister said there was "gross mismanagement" adding: "It's outrageous that hard-pressed families enduring a cost of living crisis are being made to pay the astronomical cost of this." The Scottish Government is currently doing due diligence over the further request for taxpayer backing. The cost of Ferguson Marine, which currently employs over 400 staff, including over 100 sub-contractors, equates to £400m more than what public spending watchdogs Audit Scotland were expecting would be spent to finally deliver the two ferries in 2022 during its inquiry into soaring costs. In the first five years of nationalisation, the final public cost of Ferguson Marine ended up being nearly double what had been budgeted for. It went from a £257m budget to a £468m actual cost. John Swinney and Katy Clark (Image: NQ) But that doesn't include the £120m ploughed in before nationalisation or the further planned spend in the pipeline - with £62.68m budgeted for 2024/25 and £47.86m pencilled in for 2025/26. 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 being built there. There was a further £9m overspend caused by further works needing done to the ferries and a £3m overspend over crew costs for the Glen Sannox. Glen Rosa and its sister ship Glen Sannox were both due to be online within first seven months of 2018, to serve Arran. It emerged last week that Glen Rosa is not expected to be delivered until the summer of next year - between April and July while total forecast costs for that ship alone rose by £35m. Ferguson Marine (Image: Newsquest) The costs of Ferguson Marine has soared from £17m in the first year of nationalisation in 2019/20 to £131m in each of the 2022/23 and 2023/24 financial years. Read more from Martin Williams When the contract was agreed in October, 2015, both ferries were due to cost a total of just £97m - and were to be paid for by CMAL by repaying a ministers' loan over 25 years through using revenue it generates from the fees it gets from the lease of vessels like operator CalMac's ferry fleet and harbour access fees. But part of the Scottish Government's special deal to allow then independence-supporting tycoon Jim McColl's Ferguson Marine to win the contract in the wake of CMAL's concerns over a lack of financial guarantees, meant that loan was wiped out. The £83.25m that was drawn down to pay for the construction of the vessels was said at the time to have been "eliminated" after Ferguson Marine under Jim McColl fell into financial trouble. The Scottish Government had previously pumped in £45m in taxpayer-backed loans into Mr McColl's firm which was mostly lost when it fell into administration. It managed to recover just £7.5m from that through the purchase of the Ferguson Marine assets. While then finance secretary Derek Mackay was telling the public one £30m of the £45m loan was 'to further diversify their business", internal documents state the real reason was that FMEL was in financial trouble and at risk of falling into administration. And ministers sought to ensure there was a 'right to buy' of Ferguson Marine when it provided the £30m loan knowing it was creating a path to a controversial state ownership. Highland and islands region MSP Edward Mountain, said: 'The mismanagement of the ferries contract and the nationalisation of Ferguson Marine has cost Scotland dear. Edward Mountain at Ferguson Marine (Image: George Munro) 'This cost is not just financial – we must not forget the islanders, who have had to pay with restrictions on their ability to travel. 'I know that the Scottish Government will argue that it was important to keep Ferguson Marine open, but frankly they could have given a million pounds to every worker there and still had two ferries built in Turkey in half the time." Concerns have heightened over the future of taxpayer-funded Ferguson Marine, after CMAL rejected its bid for a crucial £175m contract to build seven loch-class electric ferries. The contract has ended up with Remontowa Shipbuilding in Gdansk. The board of the loss-making now Scottish Government-owned shipyard firm has previously admitted that questions over further financial support from ministers was casting a "significant doubt" on its ability to continue operations and that the contract for the seven ferries was crucial. Ferguson Marine's contract loss to Poland came after the Scottish Government-owned procurer previously awarded two other ferry contracts to Turkey - with the Scottish Government-owned firm again losing out. Supporters had been campaigning for a direct award of the contract to ensure its future. But ministers decided a direct award could be subject to legal challenge, leading to uncertainty and delay and decided instead to go out to tender. West of Scotland MSP Katy Clark said: "Passengers have been woefully let down by the abysmal and extremely expensive failure to deliver the two lifeline ferries. "Island communities and businesses have been left with nothing whatsoever to show for this gross mismanagement. "There has been a complete absence of leadership from the Scottish Government and successive SNP First Ministers who have presided over this fiasco. "John Swinney must urgently take personal charge of ensuring that the long delayed ferries are delivered by the end of this summer." A ferry user group official said that a public inquiry was needed to investigate whether the public were getting value for money from "propping" up the shipyard. "Islanders just want to see an end to all this," he said. "It seems that every month there are extra costs and extra delays to these ferries and all we want is to see them actually delivered. "The costs of Ferguson Marine are truly unthinkable when you consider how much it is costing to produce ferries for Scotland in Turkey. "The majority, I think, would like to see a thriving Scottish shipyard producing the ferries that Scotland needs, but the reality is that it has been so fundamentally mismanaged by managers and politicians and allowed to be, that you really do wonder if it ever had a future, and whether throwing good public money after bad was ever the wisest route to take." A Scottish Government spokesman said: 'When the Scottish Government intervened to save Ferguson Marine, we did so with a goal of securing a sustainable future for the last commercial shipyard on the Clyde and its skilled workforce. 'Scottish ministers have been clear that a further delay and increased estimated cost to deliver the Glen Rosa are unacceptable and that taxpayers, and the communities which depend on the island ferries service, deserve better. Ferguson Marine's leadership must take immediate and sustained action to restore trust, enforce delivery discipline, and bring this project under control.'
The Herald Scotland
19-05-2025
- Business
- The Herald Scotland
Public cost of Scots ferry firm hits £750m amidst overspends
The costs so far of the Inverclyde shipyard firm - whose overriding aim has been to deliver the ferries - includes sums to cover running costs, wages, a dramatic slump in the value of the ships and the escalating capital costs of producing the vessels. It soared to nearly £710m before the board last week sought £35m more public money from the Scottish Government because of further rises in the price to deliver the second of the two ferries, Glen Rosa. The Ferguson Marine bill is enough to cover the cost of 13 ferries of the type currently being built at the Cemre Marin Endustri shipyard in Turkey. It is enough to provide over 3,400 settled affordable homes in Scotland's housing emergency. It comes as analysis from ferry operator CalMac showed total maintenance and repair costs to the ageing lifeline fleet totalled £252.2m with annual costs rising from £14.8m in 2014–15 to £41.8m in 2024–25 — an increase of 183%. Scottish Conservative MSP Edward Mountain, who is convener of Holyrood's transport committee said: 'I despair that the Scottish Government's business sense and management is so appalling that they can't even recognise they've made a mistake.' Katy Clark, who is Scottish Labour's shadow community safety minister said there was "gross mismanagement" adding: "It's outrageous that hard-pressed families enduring a cost of living crisis are being made to pay the astronomical cost of this." The Scottish Government is currently doing due diligence over the further request for taxpayer backing. The cost of Ferguson Marine, which currently employs over 400 staff, including over 100 sub-contractors, equates to £400m more than what public spending watchdogs Audit Scotland were expecting would be spent to finally deliver the two ferries in 2022 during its inquiry into soaring costs. In the first five years of nationalisation, the final public cost of Ferguson Marine ended up being nearly double what had been budgeted for. It went from a £257m budget to a £468m actual cost. John Swinney and Katy Clark (Image: NQ) But that doesn't include the £120m ploughed in before nationalisation or the further planned spend in the pipeline - with £62.68m budgeted for 2024/25 and £47.86m pencilled in for 2025/26. 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 being built there. There was a further £9m overspend caused by further works needing done to the ferries and a £3m overspend over crew costs for the Glen Sannox. Glen Rosa and its sister ship Glen Sannox were both due to be online within first seven months of 2018, to serve Arran. It emerged last week that Glen Rosa is not expected to be delivered until the summer of next year - between April and July while total forecast costs for that ship alone rose by £35m. Ferguson Marine (Image: Newsquest) The costs of Ferguson Marine has soared from £17m in the first year of nationalisation in 2019/20 to £131m in each of the 2022/23 and 2023/24 financial years. Read more from Martin Williams When the contract was agreed in October, 2015, both ferries were due to cost a total of just £97m - and were to be paid for by CMAL by repaying a ministers' loan over 25 years through using revenue it generates from the fees it gets from the lease of vessels like operator CalMac's ferry fleet and harbour access fees. But part of the Scottish Government's special deal to allow then independence-supporting tycoon Jim McColl's Ferguson Marine to win the contract in the wake of CMAL's concerns over a lack of financial guarantees, meant that loan was wiped out. The £83.25m that was drawn down to pay for the construction of the vessels was said at the time to have been "eliminated" after Ferguson Marine under Jim McColl fell into financial trouble. The Scottish Government had previously pumped in £45m in taxpayer-backed loans into Mr McColl's firm which was mostly lost when it fell into administration. It managed to recover just £7.5m from that through the purchase of the Ferguson Marine assets. While then finance secretary Derek Mackay was telling the public one £30m of the £45m loan was 'to further diversify their business", internal documents state the real reason was that FMEL was in financial trouble and at risk of falling into administration. And ministers sought to ensure there was a 'right to buy' of Ferguson Marine when it provided the £30m loan knowing it was creating a path to a controversial state ownership. Highland and islands region MSP Edward Mountain, said: 'The mismanagement of the ferries contract and the nationalisation of Ferguson Marine has cost Scotland dear. Edward Mountain at Ferguson Marine (Image: George Munro) 'This cost is not just financial – we must not forget the islanders, who have had to pay with restrictions on their ability to travel. 'I know that the Scottish Government will argue that it was important to keep Ferguson Marine open, but frankly they could have given a million pounds to every worker there and still had two ferries built in Turkey in half the time." Concerns have heightened over the future of taxpayer-funded Ferguson Marine, after CMAL rejected its bid for a crucial £175m contract to build seven loch-class electric ferries. The contract has ended up with Remontowa Shipbuilding in Gdansk. The board of the loss-making now Scottish Government-owned shipyard firm has previously admitted that questions over further financial support from ministers was casting a "significant doubt" on its ability to continue operations and that the contract for the seven ferries was crucial. Ferguson Marine's contract loss to Poland came after the Scottish Government-owned procurer previously awarded two other ferry contracts to Turkey - with the Scottish Government-owned firm again losing out. Supporters had been campaigning for a direct award of the contract to ensure its future. But ministers decided a direct award could be subject to legal challenge, leading to uncertainty and delay and decided instead to go out to tender. West of Scotland MSP Katy Clark said: "Passengers have been woefully let down by the abysmal and extremely expensive failure to deliver the two lifeline ferries. "Island communities and businesses have been left with nothing whatsoever to show for this gross mismanagement. "There has been a complete absence of leadership from the Scottish Government and successive SNP First Ministers who have presided over this fiasco. "John Swinney must urgently take personal charge of ensuring that the long delayed ferries are delivered by the end of this summer." A ferry user group official said that a public inquiry was needed to investigate whether the public were getting value for money from "propping" up the shipyard. "Islanders just want to see an end to all this," he said. "It seems that every month there are extra costs and extra delays to these ferries and all we want is to see them actually delivered. "The costs of Ferguson Marine are truly unthinkable when you consider how much it is costing to produce ferries for Scotland in Turkey. "The majority, I think, would like to see a thriving Scottish shipyard producing the ferries that Scotland needs, but the reality is that it has been so fundamentally mismanaged by managers and politicians and allowed to be, that you really do wonder if it ever had a future, and whether throwing good public money after bad was ever the wisest route to take." A Scottish Government spokesman said: 'When the Scottish Government intervened to save Ferguson Marine, we did so with a goal of securing a sustainable future for the last commercial shipyard on the Clyde and its skilled workforce. 'Scottish ministers have been clear that a further delay and increased estimated cost to deliver the Glen Rosa are unacceptable and that taxpayers, and the communities which depend on the island ferries service, deserve better. Ferguson Marine's leadership must take immediate and sustained action to restore trust, enforce delivery discipline, and bring this project under control.'
