Secrecy row over SNP’s £15m loan to £800m tycoon
Ministers kept ferries deal ‘confidential’
SNP ministers have been accused of a lack of transparency after it emerged they gave a ‘secret’ loan to a multimillionaire adviser to Nicola Sturgeon.
Ferguson Marine, owned by businessman Jim McColl, was handed £30million by the Scottish Government in June.
But it has now emerged that it also received a £15million loan last September, only for the cash to be kept ‘confidential’.
The firm is building two ferries at its Port Glasgow shipyard on the Clyde to be used by publicly owned operator Caledonian MacBrayne. But the project has been hit by delays and rising costs.
The Scottish Government admitted it did not publicise the September loan, blaming ‘reasons of commercial confidentiality’.
Critics have raised questions about why handouts of public cash are being kept secret.
Mr McColl is a member of Miss Sturgeon’s council of economic advisers and was the most highprofile business backer of the independence campaign in 2014, although he has since pulled back from clear support for independence. Jamie Greene, Scottish Tory transport spokesman, said: ‘Public money has been loaned to a private company in secret by the SNP.
‘The SNP must be forthcoming in explaining the full background to these loans and all its dealings with Ferguson Marine.’
He added: ‘Why was this initial £15million given to Ferguson Marine and what was the money spent on?
‘The SNP must urgently clarify both the process by which Ferguson Marine received £45million of taxpayers’ money but also outline the terms of such loans and when or if the taxpayer will see any return.’
The yard was acquired by Mr McColl, a Monaco resident who has been reported to be worth £800million, after it went into administration in 2014.
It is owned by Clyde Blowers Capital, Mr McColl’s industrial investment company.
In 2015, the yard was awarded the ferry contract with government-owned Caledonian Maritime Assets Limited (CMAL), securing 150 jobs.
When details emerged about the £30million loan, opponents demanded transparency but revelations about the £15million raised further concerns. Government support of £45million has been promised at a time when it is building two ferries for a Scottish governmentowned ferry operator at a cost of £97million. And the firm has recently warned that CMAL must accept it will need to pay more due to rising costs.
Colin Smyth, Scottish Labour transport spokesman, said: ‘The lack of action by the Scottish Government means more taxpayers’ money is being poured in and these latest revelations show there has been a lack of transparency from government on how much.’
The two ferries were due for delivery this summer and autumn but have been delayed towards the end of next year and early 2020 respectively. A spokesman for Ferguson Marine said ‘significant unforeseen complexities’ had pushed the costs up.
He added: ‘As we work to resolve these claims with CMAL, the Scottish Government has provided us with two commercial loans in the amount of £15million and £30million. These loans also support the further diversification of the business and the securing of new contracts for the yard.’
A Scottish Government spokesman said: ‘The earlier £15million loan facility provided on a commercial basis by the Scottish Government to Fergusons was not publicised immediately for reasons of commercial confidentiality.
‘In the interest of transparency the Cabinet Secretary for Finance informed the finance committee of the loan and, following normal practice, the expenditure was reported to Audit Scotland.’