Government to take control at Ferguson shipyard
Last updated 16th Aug 2019
The Scottish Government is to take control of the Ferguson shipyard at Port Glasgow.
The decision follows a long-running row about who would pay the multi-million pound cost of delays to two ferries being built there for CalMac.
Clyde Blowers, which is run by Jim McColl, announced its intention to put the business he rescued in 2014 into administration last Friday.
The Glen Sannox was launched in November 2017 and was supposed to enter service on the Ardrossan - Brodick route last year but progress on fitting out has stalled due to complications with a dual-fuel power plant.
A second ferry is still on the slipway and may not enter service until 2021 with the cost of the project expected to be double the £97 million fixed price contact agreed between Ferguson Marine and the Government-owned ferry firm CMAL.
The company blamed changes by CMAL to the design for the delays and rise in costs.
Speaking on a visit to the yard on Friday, Finance Secretary Derek Mackay said: "We have always been clear that we want to complete the vessels, secure jobs and give the yard a future.
"I am here today to ensure that we hit the ground running in making that happen and to reassure Ferguson's excellent staff of the Government's commitment.
"Public control will provide much-needed continuity of employment now and ensure the completion of the CMAL ferry contracts at the lowest possible cost to the taxpayer.''
He added: "It is absolutely essential that the outstanding contracts to build these two ferries are completed in order to sustain the Clyde and Hebrides Ferry Services network and provide vital support for the economies of our island communities.
"The alternative was for the Government to stand aside while the company went into administration, resulting in the jobs being lost and the vessels not being completed. That was not an outcome I was willing to consider.
"We are now working to put in place a management team which will refocus all efforts on completing this vital government contract.
"We will also be working closely with staff and the trades unions - as well as suppliers and customers - to achieve the best possible outcome for the yard.''
The move was welcomed by GMB Scotland organiser Gary Cook but he warned nationalisation would not be a "quick fix'' and there would be challenges.
"Nationalisation secures the immediate future of the yard and that is a very welcome development, particularly after all the recent uncertainty,'' said Mr Cook.
"Our members were caught in the middle of a situation that had nothing to do with them and their relief will be palpable.
"It is five years since the yard went bust and the Scottish Government has prevented that from happening again.
"We must be clear that nationalisation will not be a quick fix and there will be challenges.
"There will, for example, be limits to the amount of private-sector work for which the yard can compete but the alternative to nationalisation was closure and that was no choice at all.''
He added: "Our immediate priority is to secure the re-employment of the workers released last weekend because their skills are essential and then we will insist the government works with us to develop a proper industrial plan for the yard because lessons must be learned.
"We can now look to the future and everyone should do so with a sense of purpose. With vision and competency we can get on with building the ships Scotland needs and together we can grow jobs and prosperity on the lower Clyde."
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