‘Uncertainty’ around level of support needed for shipyard’s future, report says

A report from Ferguson Marine acknowledges “uncertainty” around the level of government support the state-owned shipyard needs to maintain its operations and continue as a “going concern”.

The Scottish Government has given the shipyard a “letter of comfort” which offers support for a year-long period following the approval of the annual accounts.

But a senior MSP says ministers have failed to grasp the seriousness of the situation and warned that Ferguson Marine will struggle to recruit a permanent replacement for its current interim chief executive.

Glen Sannox, the first of two large ferries built at the Port Glasgow shipyard for CalMac, entered service last month.

But there are fears the handover of its sister ship, Glen Rosa, which has also been delayed by years, could slip even further behind schedule.

Glen Sannox entered service in January PA Media

The total cost of both vessels approaches £400m – more than four times the initial £97m figure.

In a company financial statement, first published by The Herald, chief financial officer David Dishon says the board of directors acknowledges “uncertainty surrounding the future levels of support required”.

The statement, from late October, further says there is uncertainty around events or conditions which “may cast significant doubt on the group’s ability to continue as a going concern and, that it may be unable to realise its assets and discharge its liabilities in the normal course of business”.

However, he said the board has a “reasonable expectation” there will be sufficient resources to continue operating for the foreseeable future.

“Stability at the top” was listed as one of the risks to the company, as well as reputational damage from media attention around the delivery of Glen Sannox and Glen Rosa.

Interim chief executive John Petticrew is expected to stay in place until Easter.

In December, Audit Scotland said the future of Ferguson Marine was “uncertain”, noting that no further work has been confirmed beyond Glen Rosa.

There are fears the delivery of Glen Rosa will slip again PA Media

The shipyard is currently bidding against others from around the world to secure a contract for the government’s small vessel replacement programme.

Edward Mountain, convener of Holyrood’s Transport Committee, said the Government “do not appear to understand the seriousness of the situation”.

He said: “Until the Scottish Government take the future of Ferguson Marine seriously, it will be impossible to recruit a chief executive and retain the many talented staff that work there, who will drift away to other opportunities offered to them on Clydeside.”

Mr Petticrew said: “We are confident that, in partnership with the Scottish Government, we can secure a sustainable, long-term future for Ferguson Marine for the benefit of its workforce and the wider local community.

“We are actively exploring opportunities to secure more commercial work, including but not limited to the small vessel replacement programme and are hopeful that we will be successful in securing more work for the yard.

“In the meantime, Ferguson Marine remains focused on delivering MV Glen Rosa as quickly and efficiently as possible to support and serve Scotland’s important island communities.”