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.

The report highlighted issues with leadership at the shipyard (Jane Barlow/PA). PA Media

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.

Ferguson Marine was brought into public ownership in 2019 (Andrew Milligan/PA). PA Media

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.

Labour MSP Richard Leonard raised concerns about the yard having no future orders (Andrew Cowan/Scottish Parliament/PA). PA Media

“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.”