New jobs hopes for Fife yard lost, says union

Hopes for hundreds of new jobs for Fife have been dashed by the Scottish Government’s failure to support the kingdom’s BiFab yards, union leaders have said.

Nicola S t u r g e o n’s administration was accused of letting down BiFab workers following reports taxpayers stand to lose up to £ 52.4 million on the renewables manufacturer.

Politicians urged the administration to draw up an urgent strategy to save jobs after the latest twist in the saga involving the yards in Fife and on Lewis.

Union leaders warned Scottish Government cash in the form of its £37.4m bail- out that took the company from the brink of administration before it was bought by Canadian firm DF Barnes and a £15m loan could be lost.

The fears were expressed as reports emerged the firm was on the brink of collapse.

In addition, it was reported ministers signed off an extra £ 30m guarantee to support B i Fa b but decided against issuing the cash after legal advice sug gested it would breach EU rules.

According to the Herald on Sunday, the change of heart came after BiFab failed to win any work on S c o t l a n d ’s largest offshore wind farm – the Seagreen project.

The £30m guarantee was said to have been to underwrite a contract to have a part in the £2 billion Neart Na Gaoithe wind farm in the Forth. Last week, however, union leaders revealed the deal had collapsed.

GMB Scotland Secretary Gary Smith said: “T he Scottish Government has failed to understand the renewables s e c t o r, failed to plan and taken no responsibility..”

A government spokeswoman said: “We will continue to do everything possible to support the business.”