Top QC describes stance on BiFab as ‘irrational’

Unions have ratcheted pressure on the Scottish Government to secure BiFab’s future after it emerged its decisions over the crisis-hit Fife firm could be challenged in the courts.

Economy Secretary Fiona Hyslop MSP met representatives from GMB, Unite, STUC and BiFab’s Canadian owners DF Barnes yesterday afternoon to discuss a possible way for ward amid ongoing anger over Holyrood ’s handling of lucrative renewables contracts.

The Scottish Government granted a loan facility to BiFab in 2017 to save the company and retained a minority stake when it was taken over by DF Barnes.

However, the Scottish Government refused to provide a financial guarantee in respect of BiFab’s bid to manufacture wind turbines for the massive Neart na Gaoithe (NnG) offshore wind farm project, citing EU state aid rules which limit the suppor t which can be offered.

Most of the work is now expected to go overseas, but a ruling by a top QC yesterday cast doubt on the credibility of the Scottish Government’s position.

In a legal opinion for the GMB and Unite trade unions, Lord Davidson described the Scottish Government’s reasoning as “remarkable”, given the looming end of the Brexit transition period and suggested Scottish ministers could have deferred any decision until after Brexit on December 31.

And that has prompted unions to urge ministers to now explore every avenue open to it to save the firm – including looking to the UK Government for support.

Trade union secretaries Gary Smith and Pa t Rafferty said: “The Scottish Government’s decision to walk away from its previous commitments to guarantee BiFab’s manufacture of eight turbine jackets on the NnG project has put these yards on the brink of administration.

“Our unions have a legal view that the minister has no reason or obligation to walk away from BiFab under EU State Aid regulations, but putting to one side the government’s argument that will cease to exist in a few weeks’ time, there is another option.

“The Scott ish

Government can pick up the phone to the UK Government and ask for the guarantees needed to give these yards a lifeline, and the chance of a future for the communities dependent on them.”

Lord Davidson’s opinion suggested the Scottish Government had shown an “excess of caution” by informing B i Fa b a guarantee would be illegal, adding that its decision “looks to be irrational”. He added it could be open to judicial review.

A Scottish Government spokesperson said: “The Scottish Government has exhaustively considered the options for further financial support of BiFab but are prohibited from taking any decisions contrary to state aid regulations by the Scotland Act. We will continue to do e ver ything possible to support the business while recognising the need for us to remain in line with state aid regulations.”

The minister has no reason or obligation to walk away from BiFab

ON THE BRINK: BiFab is facing administration unless guarantees can be secured to give its yards a lifeline.