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STV News
04-07-2025
- Business
- STV News
Urgent investment needed to secure future of Ferguson Marine, MSPs warn
Urgent investment is needed to secure the future of the state-owned Ferguson Marine shipyard, a parliamentary report has found. 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
The Herald Scotland
03-07-2025
- Business
- The Herald Scotland
Urgent investment needed to secure future of Ferguson Marine
It has faced difficulties in delivering two new ferries, Glen Sannox and Glen Rosa, both of which are late and over-budget, and recently missed out on a £175m contract to build seven new ferries of CalMac. The yard has no further contracts lined up after it delivers Glen Rosa, now due in early 2026, and an audit published in December 2024 highlighted "a material risk and uncertainty over FMPG's ability to continue as a going concern, for at least 12 months from the date of signing the accounts". Read More: Having considered that audit, Holyrood's cross-party Public Audit Committee has released its report into the future of Ferguson Marine. The committee comprised convenor Richard Leonard (Scottish Labour), deputy convener Jamie Greene (Scottish Liberal Democrats), Colin Beattie (SNP), Graham Simpson (Scottish Conservatives), and Stuart McMillan (SNP). It found "multiple and repeated failings, including leadership and board instability, inadequate internal audit, serious weakness in contractor oversight and governance failures around exit packages for senior staff", with trade union involvement in decision-making minimal and considered inadequate. Frequent changes among senior management had an adverse effect on governance, while weak internal controls and lack of internal audit until recently contributed to poor oversight. In addition, payments approved to a contractor and exit packages for senior executives bypassed Scottish Government approval. The report highlighted an incident in which Ferguson Marine was hit with a £48,000 tax bill from HMRC after entering into a contractor payment arrangement for a secondee from CMAL (Caledonian Maritime Assets Limited) who was initially seconded to FMPG, later moved to FMPG's payroll, then - without proper board approval - switched to being paid as a self-employed contractor. The committee expressed serious concerns over the yard's viability as a going concern going forward, saying considerable investment will be needed to safeguard its future. It urged the Scottish Government and Ferguson marine to finalise and publish a credible long-term business plan to secure sustainable work; invest in modernisation to make the yard more competitive; strengthen governance structures and ensure future funding and investment decisions are be subject to rigorous value-for-money tests and proper approval. Committee Convener Richard Leonard MSP 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. There has to be better oversight and governance of the work that is ongoing. '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.' Responding to the committee's report, GMB Scotland, the biggest union at Ferguson Marine, echoed calls for investment and the direct award of contracts, including the replacement for Lord of the Isles, to the Port Glasgow yard. Louise Gilmour, GMB Scotland secretary, said workers must be allowed to restore a world-class reputation unfairly damaged by delays and overspends affecting the Glen Sannox and Glen Rosa. She said: 'People have short memories but, before these misjudged and ill-planned contracts, this yard successfully built a third of CalMac's current fleet, including the original Lord of the Isles. 'Workers must now be given the chance to restore what was a worldwide reputation for excellence that has been damaged through no fault of their own. 'Before being turned into a political football, they delivered a steady stream of ferries serving Scotland's islands and must be allowed to do so again. 'Ministers and their civil servants insist direct awards are not straightforward but what could be more straightforward than Scotland's publicly-owned shipyard working in tandem with Scotland's ferry operators. 'Whoever is to blame for the failures around the most recent contracts it is not the workers. 'They deserve the support of ministers and that starts with being given the chance to build the kind of ferries they successfully completed for generations. 'The yard needs a steady pipeline of work and that can start with the Lord of Isles.' Ferguson Marine was one of six yards to make it to the second stage of the tender process for seven new CalMac ferries, but the contract ultimately went to Remontowa Shipbuilding in Gdansk. 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.'
Edinburgh Reporter
27-04-2025
- Business
- Edinburgh Reporter
Greene becomes economy spokesperson
Scottish Liberal Democrat have appointed Jamie Greene MSP as the party's economy and finance spokesperson. Mr Greene will also continue to serve as Deputy Convenor of the Public Audit Committee, the body which oversees how public money is spent. Mr Greene said: 'I am delighted to be taking up this important role at a crucial time when the Scottish economy is facing serious threats both domestically and internationally. 'The economy has never been at the forefront of the SNP's attention in Scotland, and Labour seem to be parroting their bad decisions across the UK. 'As a result of this neglect, every Scot has lost out, from the working class communities that I represent on the west coast of Scotland to the towns, villages and islands of the north of Scotland. 'As a media entrepreneur from a working class background, I first got into politics because I believe in aspiration and opportunity. Good public services rely on a strong growing economy. I've quit the Scottish Conservatives, who make reckless unfunded promises, and joined a party that is fiscally responsible but compassionate and decent at heart, 'I want to speak to businesses both small and large about how we can kickstart economic growth and put Scotland at the forefront of industries like renewables, AI, defence and precision medicine.' 'Our young peoples deserve nothing less. I will put a laser focus on making sure they have a future here in Scotland.' Alex Cole-Hamilton, leader of the Scottish Liberal Democrats, said: 'I am delighted that Jamie has agreed to take up this post. He has a wealth of experience in Parliament and his can do and constructive attitude is how we get things done. 'His cross-party work on the Public Audit Committee has shown his commitment to holding the SNP to account on scandals like the ferry fiasco. 'One of the early areas on which we found common ground was our shared belief in the need to grow Scotland's economy, in fostering entrepreneurship, and the importance of taking proper care of taxpayers' money. 'You can only have great public services if you can afford to pay for them. The SNP have never had a proper plan for growing the economy and businesses have been mucked around. 'Scotland deserves better than SNP incompetence and the Scottish Liberal Democrats are on the up.' Jamie Greene at conference 2025 Alex Cole Hamilton MSP leader of the Scottish Liberal Democrats at their 2023 Conference held at the Royal College of Physicians PHOTO Alan Simpson Like this: Like Related
