Swinney ‘not aware’ of cash risks over ferries

John Swinney said he gave “budget approval” for the ferries contract with Ferguson Marine, but a spokesman for Nicola Sturgeon said he was not aware of the financial risks.

An email trail released on Wednesday shows former transport minister Derek Mackay was responsible for the approval of a contract in 2015 for Ferguson Marine to build two ferries – which are set to be delivered at least five years late and two-and-a-half times over budget.

But the same trail shows a finance official asking for the award to be delayed until Mr Swinney, who was finance secretary at the time, could be briefed.

Mr Swinney told journalists after First

Minister’s Quesions: “As finance secretary at the time, I’m responsible for providing the budget for the meeting of any contracts.

“What officials were doing was briefing me that there was no need to change the budget arrangements based on the contract that had been agreed and approved by the transport portfolio and which, of course, is confirmed by the email trail you got yesterday.”

Asked if he gave it the nod, he said: “What I gave was the budget approval, which I had given in August”, adding: “The finance secretary does not approve all contracts. If that was the case there would be significant inefficiency in the processing of contracts.”

A spokesman for the first minister said Mr Swinney had not been briefed on the financial risks.

Ferguson Marine had previously stated it could provide a full refund guarantee, before claiming only 25% could be offered – leaving taxpayers with a potential bill of £48.5 million if the contract was cancelled.

During First Minister’s Questions, Conservative leader Douglas Ross accused Mr Swinney of “signing off ” the deal.

Responding, the first minister said: “The deputy first minister did not take the decision, he wasn’t even copied in to the advice of October 8 that was the basis of that decision.

“He was simply briefed on that decision after it was taken – not even at his request, but on the initiative of an official.

“It is not unusual – really not unusual – for finance secretaries to be briefed on all sorts of decisions that involve the spending of money. It does not mean the finance secretary has actually taken the decision.”

Mr Ross continued: “It’s very clear in here how officials escalated to John Swinney, waiting for his green light.

“In these emails, civil servants state that the deputy first minister confirmed the ‘absence of banana skins’.

“John Swinney couldn’t find a single banana skin, when they were absolutely littered around him – there were more banana skins in this project than there are in the monkey house at Edinburgh Zoo.

“We now know all of this, but what we don’t know is why the deputy first minister ignored all those banana skins.

“The most crucial document in this affair is still missing – the one that explains why John Swinney charged ahead against expert advice.”

Ms Sturgeon maintained Mr Swinney was briefed on the issue, but it was Mr Mackay who had already made the final decision.

Mr Ross pushed for a statement from Mr Swinney “to hear why he forged ahead with the deal that has cost taxpayers a quarter of a billion pounds”.

The Conservative leader added that there is a “stench of cover-up and corruption” around the issue.