Scottish Government 'actively considering' direct award for crucial ferry contract

The Scottish Government is “actively considering” giving Ferguson Marine a direct award for a crucial ferry replacement contract.

Earlier this week, political and community leaders across Inverclyde urged John Swinney to award the MV Lord of the Isles replacement contract to the troubled, nationalised shipyard.

Campaigners said the contract would secure Ferguson’s future, allowing it to “turn the page and begin a new and successful chapter.”

The Scottish Government has resisted calls to directly award contracts to the shipyard in the past, but on Thursday, Swinney said ministers are considering the possibility.

“It’s complicated, but the Government is doing the detailed work to enable [a direct award] to be considered,” Swinney told MSPs.

Although Swinney could not disclose the legal advice his government has received, he said ministers are “actively considering the proposition along with other propositions”.

Politics

First Minister urged to award ferry replacement contract to Ferguson Marine

The Scottish Government has resisted calls to directly award contracts to the shipyard in the past.

Speculation has surrounded Ferguson’s future since the yard failed to win the contract to build seven new ferries for CalMac as part of the Scottish Government’s small vessels replacement programme. Instead, the £175m contract went to the Remontowa yard in the Polish city of Gdansk.

The second phase of the small ferries programme is expected soon, along with arrangements to replace MV Lord of the Isles.

An open letter to the First Minister on Monday urged the Scottish Government to consider directly awarding the Lord of the Isles replacement contract to Ferguson’s – bypassing the standard competitive bidding process.

Speaking to MSPs before FMQs on Thursday, Scottish transport secretary, Fiona Hyslop, confirmed that ministers are considering a direct award.

She said direct awards are “only possible in strictly limited circumstances” but added that all new vessel projects are considered on a “case-by-case basis.”

“I can confirm we are actively looking at options of both a direct award and a competitive procurement process to determine an appropriate and lawful route to procurement,” Hyslop said.

She said the outcome of these considerations would be confirmed “in due course”.