Achi news desk-
The public spending regulator, Audit Scotland, has highlighted a “significant degree of uncertainty” over the future of the Inverclyde yard without financial support to secure its future.
Questions have been raised about whether the Scottish Government will award the new wave of ‘loch class’ ships directly to the yard as part of the small boat replacement program to secure hundreds of jobs.
But ministers failed to commit to the issue raising ongoing fears that Ferguson Marine will have to compete with other companies for the right to carry them out.
Union leaders had feared that when a decision is made by ministers, it will announce that the contract must go to competitive tender – ruling out a direct award to the yard in order to protect hundreds of jobs.
READ MORE: Auditors identify ‘significant uncertainty’ over Ferguson Marine’s future
And they had told ministers before the latest announcement that the immediate ruling was needed.
The Scottish Government had ruled out, for now, plowing in a further £25m requested for the modernization of their shipyard company as part of a new business plan to ensure a sustainable future beyond just providing the two wild and excessive delay. the budget’s lifesaving ferries are vital to its hopes of getting the contract for the Small Vessel Replacement Programme.
And there have been concerns that the Scottish Government is treating the loss-making yard very differently to its sister state-owned ferry operator CalMac as it has already decided it is the preferred option for the the next contract for the future of the island’s ferry services was a lifeline. direct ruling – closing the door on bringing in private operators.
But Ms McAllan has now made the biggest commitment to date amid uncertainty surrounding the yard’s future – just weeks after the chief executive of Ferguson Marine was sacked amid ongoing concern about the rising costs of Scotland’s ferry fiasco.
Andrew Miller, chairman of Ferguson Marine, said it needed “strong leadership” to secure its long-term future.
Costs continue to rise over the new Glen Sannox and Glen Rosa ferries being built at the Inverclyde yard, which were due to come online in the first half of 2018, with one initially serving Arran and the other to serve the Skye triangle routes to North Uist and Harris. , but that they are at least six years late, and the costs are expected to be four times greater than the original contract of £97m. It was confirmed that both were now to serve Arran.
When asked by MLAs about the outcome of the symbolic Glen Rosa launch, he said: “We will leave no stone unturned in securing a sustainable future for Ferguson Marine.”
She has agreed to attend a cross-party summit where crucial discussions will be held on how to deliver new contracts for the troubled shipyard.
Announcing the plans at the STUC congress in Dundee, the GMB Scotland union said it will facilitate the discussions next month between all those who invest in the future of the shipyard.
Ms McAllan, who attended the launch of the Glen Rosa, has promised to stand with the shipyard “well into the future”.
READ MORE: Fresh fears about Ferguson Marine’s future after ScotGov announcement
He told MSPs: “When we made our decision to take Ferguson Marine into public ownership, we were clear that we did so to protect essential jobs and skills and my comments. [at the Glen Rosa launch] reaffirm our continued commitment to shipbuilding and Scotland.”
He said an updated business plan for future investment in the yard had been received by the Scottish Government and was being considered “quick”.
Glen Sannox was launched by Nicola Sturgeon almost seven years ago and is not expected to be ready until July at the earliest.
Glen Rosa was due to be delivered to CalMac in August 2018, but is currently scheduled for May 2025.
But the arrival dates have been in constant flux as construction has been plagued by design challenges, cost overruns and delays.
Amid the delays and rising costs, Ferguson Marine under the management of tycoon Jim McColl went into administration and was nationalized at the end of 2019 with CMAL and the yard managers blaming each other.
Mr Tydeman has been replaced by fourth generation shipbuilder John Petticrew as interim chief executive.
According to Ferguson Marine Mr Petticrew has “a long career in shipbuilding and infrastructure construction with over 40 years of experience, spanning three different continents”.
Plans to start procuring a new wave of seven vital lifeboats for Scotland’s islanders have already been delayed by almost two years.
Unions have said decisions need to be made about the potential to award the ferry contract directly to Ferguson Marine soon as workers are already being seconded to other yards, which are at risk of losing the skills and experience necessary.
There are concerns that the yard would fail in a competitive tender for the work without a direct award, which is seen as crucial for its future.
Ferguson Marine had failed to reach the shortlist of potential contractors after failing at the first hurdle in the Pre-Qualification Questionnaire for the £105m contract for the first of two two-ferry contracts awarded to Cemre Marin Endustri shipyard in Turkey.
And then he failed to even bid for the work on building the second £115m batch before it was awarded again to the same Turkish shipyard.
Ferguson Marine carried out a detailed analysis of a bid for the contract but concluded, based on the related documents published, that the probability of winning the contract was “low enough to recommend a bid rejection”.
Papers attached to the decision showed that the qualifying conditions in the tender documents were believed to include criteria that Ferguson Marine could not meet.
Among the key factors was that the two ships in the series had already been awarded to Cemre Marin Endustri.
The loss-making yard’s board admitted in November that a lack of financial support from ministers had cast “significant doubt” on the company’s ability to continue its operations.
Ferguson Marine (Port Glasgow) made a net loss of £1.3m in 2022/23 and there have been concerns about the risks to the business while highlighting a failure to secure a committed investment of £25m to support future work at Inverclyde on after delivery of Glen Sannox and Glen Rosa ferry.
