Scottish Government commitment to Ferguson Marine questioned over 'slow pace' of funding

The slow pace of investment at Ferguson Marine “raises serious questions” about the Scottish Government’s commitment to the beleaguered yard, a Holyrood committee has said.

Ministers committed to investing £14.2m in the publicly owned yard last year to improve its machinery, hoping to increasing the chances of it winning more contracts after the much-delayed and overbudget ferry the Glen Rosa is handed over.

But the majority of the funding is yet to be seen at the yard, prompting bosses to rescind offers for new purchases.

In a letter to deputy first minister Kate Forbes, the Public Audit Committee expressed its “disappointment” at the pace of the investment.

The Government has repeatedly said it wants to return the yard, which it saved from administration in 2019 before discovering a raft of problems with the building of the Glen Rosa and its sister ship the Glen Sannox, to the private sector.

However, it is widely believed that major changes will be required to the business before it will be of interest to buyers.

Committee convener Richard Leonard wrote: “We write to express our disappointment that, two months on from the publication of our report and more than a year from the Scottish Government’s commitment to provide £14.2 million to the yard, there appears to have been little tangible progress.

“The committee has also been made aware that while procurement orders were issued for major items required for the yard, it has now emerged that these notices were subsequently withdrawn.

“This further undermines confidence that the promised investment will materialise.

“The slow pace of new investment raises serious questions about the Scottish Government’s commitment to providing Ferguson Marine with the urgent and sustained investment it needs to move on from the ferries controversy, safeguard its workforce, re-establish its previous reputation and become competitive in a challenging market.”

Leonard added he is concerned the additional funding could be used to cover the rising costs of the Glen Rosa, which is due to be handed over next year, an approach he said would “do nothing to address the underlying issues of long-term viability”.

He also pointed to the Scottish Government’s response to the committee’s report on Ferguson Marine earlier this year, where Forbes appeared to suggest the new funding would only be provided if the yard is able to secure new work.

“This is precisely the reverse of what is required,” the convener wrote.

“As we made clear in our report, it is the committee’s view that the yard cannot hope to win new orders without urgent and immediate investment to modernise and improve productivity.

“This circular position risks further weakening the yard’s prospects and locking it into further decline.”

The Scottish Government has been asked for comment.