SNP criticised over bonus for shipyard boss

NICOLA STURGEON is facing criticism after Scottish ministers admitted that the boss of nationalised shipbuilder Ferguson Marine has been awarded a bonus despite already being one of Britain’s highest-earning public servants.

Tim Hair is entitled to a “retention incentive” that takes his day rate to about £4,000, Holyrood has said.

The incentive was labelled “further damning evidence of the SNP’S total mismanagement of Ferguson Marine” by opposition politicians.

A Scottish Government spokesman said: “This payment is not a bonus. The turnaround director’s contract was renewed in February 2020 with a reduction in the day rate and the addition of a retention arrangement, under which a percentage of the fee is accrued and withheld for a period of time.”

Scottish ministers nationalised 118-year-old Ferguson Marine after it ran into difficulties building two ferries for Calmac, a state-owned operator. The ferries have still not been delivered.

The bonus admission was contained in a response to a question under the Freedom of Information Act.

When asked why Mr Hair’s daily rate appeared to have jumped to £4,000 a day in July, the Scottish government said: “We understand these differences relate to the retention, and then payment, of a percentage of the turnaround director’s day rate as a retention incentive under the terms of his contract.”

A spokesman for Ferguson Marine said: “The retention incentive is not a bonus or additional payment over and above the agreed fee; it is an integrated part of the day rate.

“As part of the turnaround director’s contract, a percentage of the agreed day rate is withheld from payment for a period of time to retain the turnaround director’s services. It essentially acts as a financial ‘lock-in’, providing certainty to the business.”