Shipyard nationalisation could cost taxpayer £100m
TAXPAYERS could face a £100million bill to complete a ferry contract if a crisis-hit shipyard is nationalised.
Ferguson Marine owner Jim McColl has privately told SNP and Labour politicians of the extra cost required to finish building two CalMac ferries.
However, Finance Secretary Derek Mackay was described as ‘clueless’ yesterday after he claimed he had no idea how much additional funding was needed.
This was despite the fact he is stepping up efforts to nationalise the site, which is on the brink of administration.
Work on the projects at the yard in Port Glasgow, Renfrewshire stalled in a row over whether Ferguson Marine Engineering or quango Caledonian Maritime Assets, which is responsible for ferries and harbours, would pay the extra money after the cost of the project rose above the original estimate of £97million.
The new estimate, confirmed by sources at the shipyard, would see the cost double to almost £200million.
MV Glen Sannox is now well over a year late, while Hull 802 is nearly two years behind schedule.
Mr McColl told representatives of Inverclyde Council that an additional £52million of public cash would be needed to complete the ferries, in addition to writing off a £45million loan the shipyard received from the Scottish Government.
But yesterday Mr Mackay said a ‘commercial solution’ to save the yard was now ‘unlikely’.
He added: ‘The Scottish Government has indicated to all relevant parties that we are ready and willing to take Ferguson Marine into public ownership and deliver the ferries to secure the continued employment of the workforce.’
He told the BBC’s Good Morning Scotland programme that nationalisation would be ‘a good use of public money’ as it would secure 300 jobs, though he could not say how much public money would be spent to complete the ferries.
‘To complete them it will cost more,’ he said. ‘I’ve not been able to get a cost from the owners on how much it would cost.’
Scottish Conservative transport spokesman Jamie Greene responded: ‘If Derek Mackay is so clueless he can’t even answer basic questions about the SNP’s nationalisation plans, what hope is there for the future of the shipyard?’
Mr McColl has offered to give the Scottish Government a stake in the firm if it writes off the £45million loan. He would then provide the rest of the cash to complete the contract.
Mr Mackay claimed that ‘it would be illegal’ to accept as it was a fixed-price contract.
But Chris McEleny, leader of the SNP group on Inverclyde Council, said: ‘I have seen legal advice from senior counsel that says Jim McColl’s offer is legal.
‘The Scottish Government officials who were given that advice need to get together with both sides and get that deal signed off. That is the best situation.’
Graham Grant – Page 16
‘Commercial solution unlikely’