Ferry row deal offer... but it could cost £45m
‘Possible model for the yard’s future’
A BILLIONAIRE businessman has made an offer to end a long-running dispute over a ferries contract – at a potential cost to taxpayers of up to £45million.
Jim McColl is owner of Ferguson Marine shipyard on the Clyde and has been embroiled in a stand-off over a £97million deal to build two CalMac vessels, which has been beset by lengthy delays and cost overruns.
He rescued the Port Glasgow shipyard from collapse just days before the 2014 independence referendum in a deal brokered by then First Minister Alex Salmond – and has now made a new offer to SNP ministers, who have indicated they are prepared to nationalise the site.
It is understood the tycoon pledged to give them a stake in the yard – but only in return for them writing off the £45million of loans the Scottish Government has already handed over.
He made the offer after legal advice that it was lawful and would not breach procurement rules.
Mr McColl – boss of Clyde Blowers Capital (CBC), which owns Ferguson Marine’s Port Glasgow site – discussed his plans at a meeting with representatives of Inverclyde Council and management from site operator Ferguson Marine Engineering Limited (FMEL).
In a joint statement last night, council leader Stephen McCabe and Chris McEleny, leader of the authority’s SNP opposition group, said: ‘Our goal is to preserve the last commercial shipyard on the Clyde and protect the jobs of the 350 local people who work there.’
They had been ‘presented with a possible model for the yard’s future’ which could be ‘a way forward in terms of delivering the best outcomes for Inverclyde and Scotland’ during talks with Mr McColl and FMEL chief Gerry Marshall.
The statement added: ‘There is still a lot of work to be done to turn the concept into a workable proposal and it is a matter for the Scottish Government, CBC and FMEL to do this as partners.’
One ferry, MV Glen Sannox, is well over a year late, while the second, currently known as Hull 802, is nearly two years behind schedule.
FMEL said at the end of last year that it will lose £39.5million completing the contract but work has subsequently ground to a halt.
The project stalled over a row about whether FMEL or quango Caledonian Maritime Assets Limited (CMAL), which is responsible for ferries and harbours, should pay for the delays and cost overruns.
In a statement, FMEL said: ‘We continue to engage with both the Scottish Government and CMAL, and remain fully committed to ensuring the construction of the CMAL vessels.’
A Scottish Government spokesman said: ‘We share the determination to ensure a strong, long-term future for Ferguson’s. This proposal has formed part of the discussions with CBC over a number of weeks.
‘However, we have been clear to CBC their proposal contained a number of serious risks to the public purse… and we are unable to take this forward for those reasons. We remain open to any workable proposals and to any commercial investment CBC wish to make.’