Ferguson shipyard to be given contracts to build four ships

The publicly-owned Ferguson shipyard is to be directly awarded contracts to build four new vessels under plans announced by the Scottish government.

Ministers have proposed that the Clyde yard be commissioned to build two small ferries as well as a marine research vessel and a marine protection ship.

The decision, announced in the Scottish Parliament, is subject to a due diligence process.

Transport Secretary Fiona Hyslop said another contract, to replace the CalMac ferry MV Lord of the Isles , would not be directly awarded, but would go to a competitive tendering process.

In a statement to parliament, she proposed that contracts to build two new vessels for the Sound of Harris and Sound of Barra - under Phase Two of the Small Vessel Replacement Programme - are directly awarded to Ferguson Marine.

Shortly afterwards, Deputy First Minister Kate Forbes announced proposals to award Ferguson Marine contracts to replace the Scotia marine research vessel, and the Minna marine protection vessel.

Forbes told parliament that the award of the four contracts would help unlock up to £14.2m of promised funding to modernise the Port Glasgow shipyard.

MSPs also heard that the contract for the MV Lord Of the Isles would be put out to open tender in the next few weeks with a view to placing an order with a shipyard later this year, despite calls for it also to be directly awarded to Ferguson's.

Forbes told parliament: "These substantial proposals we are announcing today would deliver for Ferguson Marine, for island communities and for Inverclyde.

"We are strengthening ferry resilience and connectivity for communities that rely on dependable services."

The deputy first minister said the contracts would help Ferguson Marine - which has built similar vessels in the past - secure other contracts in the future.

She told MSPs: "At the same time, our plans for new vessel awards would support skilled employment and industrial capability in Inverclyde, where Ferguson Marine remains an essential part of the local economy and a shipyard of national industrial importance."

Forbes added that the government intended to return the business to the private sector "when the time is right".

Ferguson's, the last shipyard on the lower Clyde, has been building vessels since 1903, including about half of CalMac's current large vessel fleet.

The firm employs about 300 workers, including about 50 apprentices, in an area of high social deprivation that has lost about 1,200 jobs in recent years.

But it has suffered from the long-running controversy over delayed and over-budget construction of the two flagship ferries - the Glen Sannox and MV Glen Rosa.

Glen Sannox began sailings last year, almost seven years behind schedule. It has recently been out of service during an extended overhaul but is expected to return in the coming days.

Glen Rosa, which was due for delivery in 2018, is not expected to be completed until the end of the year.

Ferguson Marine chairman Duncan Anderson said the contracts would help make the yard "a leader in the industry in years to come".

Chief executive Graeme Thomson added: "Our experience, demonstrated through our successful work on similar projects, means we are uniquely positioned to build these four vessels.

"I have the utmost confidence in the talent and technical skill within our team to produce ships fit to serve communities and provide critical research infrastructure for years to come."

GMB secretary Louise Gilmour said: "These are exactly the kind of ships Fergusons has been sending around the world for more than 100 years and must now open a pipeline of work to allow this famous yard to thrive for 100 more.

"We are an island nation, will always need ships and Ferguson Marine should be helping build them."

Conservative transport spokeswoman Sue Webber welcomed the announcement and the commitment to return the yard to the private sector.

She added: "However, given the disasters the SNP has presided over in the building of the Glen Rosa and Glen Sannox, many Scots will have serious concerns about these new vessels being delivered on time and on budget."

Scottish Labour MSPs also welcomed the announcement.

However, Labour's Rhoda Grant suggested it was made with the upcoming Holyrood election in mind.

She told MSPs: "This statement is the equivalent to the photo-op of the Glen Sannox with painted on windows."

Grant added that a third of CalMac sailings on Thursday were subject to disruptions, and called on ministers to "face up to their responsibilities and ensure that communities are properly compensated".