New Calmac ferry costs double
The new Arran ferry's now expected to enter service three years late and cost twice as much as planned.
Economy Secretary, Derek McKay's been giving an update on the nationalised Ferguson shipyard in Port Glasgow and the progress on the MV Glen Sannox.
Scotland's Finance Secretary Derek Mackay has hit out at the former managers of the yard after it emerged the Scottish Government might have spend almost £99 million extra to deliver the ferries.
The Scottish Government awarded a contract for the Port Glasgow shipyard to build a pair of ferries to serve Scotland's islands.
But the firm collapsed into administration in August, forcing Scottish ministers to intervene, taking the company into public ownership.
Mr Mackay has published a report from turnaround director Tim Hair, who was appointed by the Scottish Government.
It predicts an extra cost of between £94.8 million and £98.8 million for remedial work and completion of the ferries, as well as the extension to the delivery times.
Vessel 801 is now expected to be complete between October and December 2021 and Vessel 802 due between July and October 2022.
Both were expected to be finished in 2018 at a cost of £97 million.
The Finance Secretary took aim at what he called "mismanagement'' by the former owners of the yard, Ferguson Marine Engineering Limited (FMEL).
He said: "The Government consistently acted in good faith on the best information available to us and, unfortunately, despite our best efforts, the problems incurred by the yard in delivering the design and build contract for 801 and 802 could not be resolved.
"The full picture was not known until the new management team was in control of the yard.''
He added: "The report published today sets out in stark detail the failings of the previous management.
"It's difficult to overemphasise the disastrous impact the absence of proper management processes had on the yard.
"This had implications for the condition and progress on ferries being constructed there and the scale of the challenge that lies ahead to put right the failures of the previous management team.''
Some of the issues pinpointed in the report include uncertainty over whether FMEL had bought the necessary equipment for the ferries.
The report found the basic initial design of the vessels has not yet been completed and approved by the customer, another Government-owned firm.
Mr Hair said in the report that internal processes "have generally been found to be poor or nonexistent to control a project of this magnitude.
Mr Mackay was challenged by Conservative MSP Jamie Greene, who said the issues surrounding the yard "should come as a great source of shame to the SNP and its members''.
He added: "It is an abject failure to deliver to our island communities new ferries on time or on budget.
"Beleaguered shipyard workers had their business put into administration as a result of the actions of this Scottish Government.
"The Cabinet Secretary, with no hint of irony, wants us to praise him for saving the yard which his own Government put at risk of closure in the first place. It's shocking.''
Responding, Mr Mackay said: "If it were not for the actions of the Scottish Government, Ferguson's would not have a tomorrow.
"It's the actions that we've taken today that'll insure that Ferguson's has a future and that's the important point here.''
He also accused Mr Greene of "playing politics with people's lives''.
Mr Mackay said he planned to create a "pipeline'' for further orders to be constructed by Ferguson Marine.
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