Tough decisions required over Ferguson future, Government told

The Government faces “tough decisions” over the future of a shipyard building two late and over-budget ferries, the leader of the local council has said.

The Glen Sannox and Glen Rosa are due to be completed in July of this year and next year, respectively, and will likely cost four times more than the initial £97 million contract price.

But the Government-owned yard is now looking to the future, in the hopes of securing more work, with calls for a direct award of smaller ferries planned for ferry operator CalMac.

The Scottish Government, however, has been resistant to such a move, which it says can only be done in a small number of circumstances to satisfy state aid regulations.

Interested parties – including Deputy First Minister and Economy Secretary Kate Forbes, unions, the local council and representatives of the yard – met on Thursday for a summit in Greenock.

Speaking after the meeting, Inverclyde Council leader Stephen McCabe said: “There was a consensus in the room that we absolutely want Ferguson’s to survive, for investment in the yard, work for the yard, and for the yard to thrive.

“There’s a strong cost benefit case for a direct award to Ferguson’s.

“Ferguson’s is the last commercial shipyard on the Clyde.

“We are a maritime nation. We cannot afford for this yard to close.

“We need to build Scottish ferries in Scottish towns for Scottish people.

“It was a positive meeting but I’m not counting my chickens because tough decisions need to be made and they need to be made in a matter of weeks, not months.”

Ms Forbes, in a statement released after the summit, did not say if the direct award would come.

“The Scottish Government shares a common goal with GMB Scotland, the yard, the workers and all stakeholders who met today – to seek a sustainable future for Ferguson Marine which works for employees, the taxpayer and Scotland’s economy,” she said.

“I have heard many ideas and been impressed by the energy and commitment of everyone involved. The contributions will be at the forefront of my mind over the coming weeks as we consider proposals for the yard’s medium and long-term future.

“Ferguson’s workers deserve huge praise for their dedication and hard work.

“Despite the well-documented problems, Glen Sannox is on course for delivery by the end of July and Glen Rosa will be completed next year.”

While GMB senior organiser Gary Cook said the small ferry contract must be the start of a “pipeline of work” to support the yard.

“These contracts would become a springboard back to profitability and help the workforce repay taxpayers for the faith and investment already placed in the yard,” he said.

“The workers are committed, skilled and completely blameless for the errors made in recent years and must be given the chance to show that.

“Kate Forbes will leave Greenock today under no illusion about how important these contracts are to the yard and how they will help protect its shipbuilding heritage for generations to come.”

Scottish Tory transport spokesman Graham Simpson said the discussion at the summit was “useful and frank”, adding that the Deputy First Minister should learn from the “dithering of her predecessors” and make a quick decision.

“She needs to decide whether the small ferries work is awarded to the yard or put out to tender, and whether she is prepared to invest in the yard to make it commercially competitive,” he said.

“These decisions should have been taken already but instead the SNP Government have focused on delivering a ferry which is late and overbudget.”