Minister denies ferry procurement was ‘catastrophic failure’

Paul Wheelhouse was responding to a Holyrood report looking at problems with the building of two new ferries for CalMac.

Minister denies ferry procurement was ‘catastrophic failure’ PA Wire

The Scottish Government has denied that the procurement process for two ferries was a “catastrophic failure” after the build was delayed and ran over-budget.

Islands minister Paul Wheelhouse made the claim as he responded to a review into what went wrong with the construction of the new CalMac vessels.

In a damning report last month, MSPs on Holyrood’s rural economy and connectivity committee said the procurement of the boats from the Ferguson Marine yard in Port Glasgow was “a catastrophic failure”.

“While there are lessons to be learned, which we have acknowledged, we do not accept the committee’s description of a ‘catastrophic failure’.”

Island minister Paul Wheelhouse

Ferguson Marine was supposed to deliver two ferries to be used on CalMac’s west coast routes by 2018 at a cost of £97m.

But the vessels are not now expected to be completed till 2022 and 2023 respectively, with the cost having almost doubled.

The committee inquiry found that the procurement process was “not fit for purpose”.

In a letter to MSPs, Wheelhouse stressed that Caledonian Maritime Assets Limited (CMAL), a Scottish Government-backed body, “directly procures” vessels for the CalMac fleet.

Speaking about the two boats, referred to as 801 and 802, the minister insisted: “I am satisfied that procurements in relation to 801 and 802 were undertaken fastidiously, in good faith and following appropriate due diligence.”

Islands minister Paul Wheelhouse said that ‘contractor failure has been a very significant factor’ (Jane Barlow/PA).

He said the CMAL was “already introducing improvements to its own processes” – but stressed that “these improvements should not be viewed as criticism of the process adopted in relation to 801 and 802, but build upon best practice exhibited in other areas”.

Wheelhouse set out the Scottish Government’s view, that “contractor failure has been a very significant factor in the difficulties we have seen arise”.

And he said there was “disappointment” from ministers that the report did not “better reflect the contribution of the contractor’s non-performance, contract management and financial management” in relation to the problems experienced with the construction of the ferries.

Wheelhouse insisted: “While there are lessons to be learned, which we have acknowledged, we do not accept the committee’s description of a ‘catastrophic failure’.”

He said that Scottish ministers had taken “balanced, informed decisions following appropriate diligence and independent advice”.

The minister continued: “In reluctantly accepting increased cost and timescale for the delivery of the vessels, Scottish ministers have acted and have secured hundreds of skilled jobs and wider economic activity.

“I do not regard those difficult decisions to represent a failure.”

“The SNP are in total denial over their ferries fiasco.”

Conservative MSP Graham Simpson

But Wheelhouse’s response to the report angered opposition MSPs at Holyrood.

Tory infrastructure spokesman Graham Simpson hit out and said: “The SNP are in total denial over their ferries fiasco. The minister responsible is effectively saying that there is nothing to see here and that nothing has gone wrong.

“The cost of these two ferries has spiralled out of control and they are still not even built yet, which has been a disgraceful failure for the communities which rely on them.

“It is yet another prime example of the SNP splashing the cash but failing to deliver the infrastructure on the ground.”

Liberal Democrat committee member Mike Rumbles attacked the government for an “appalling government response to the committee’s unanimous report”.

Rumbles blasted: “The failure to accept that there was a catastrophic failure in the procurement process suggests ministers have their hands over their eyes and their fingers in their ears.

“Meanwhile, the government’s response criticising the committee’s report for not blaming the contractor enough suggests that complacency is well entrenched in the Scottish Government, with an almost complete lack of understanding of the reality of their mistakes from the start to the finish of this sad episode.

“To top it off the Scottish Government does not even mention in their response the millions of pounds lost to the taxpayer. ”

He hit out: “This is the worst Government response to a committee report I have ever seen. The minister must immediately appear before the committee to answer for this dereliction of duty.”

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