Expert: Nationalisation may work but not for long. Order must be restored
Nationalising Ferguson’s shipyard to complete the troubled ferries’ contract could work but only as a short-term fix, according to a leading industry expert.
Finnish academic Professor Pentti Kujala said there was no reason Scotland could not, like his native country, have a successful shipbuilding industry despite fierce competition in the sector.
Both countries have a population of about five million people and share a rich maritime history and shipbuilding tradition.
But, while Finland has seen major successes in yards producing vessels for niche markets, Ferguson Marine, Scotland’s only remaining commercial yard on the River Clyde, was taken into public ownership on Friday after problems with a contract to build two Calmac ferries.
Prof Kujala cited the Meyer Turku yard in Finland which has seen success after being established five years ago jointly owned by a private company and the Finnish Government.
Prof Kujala, head of the marine technology research group at Aalto University in Helsinki, said: “We have experienced problems with our maritime industry and the Finnish Government has come to support the sector.
“It’s a good idea if they can be involved with a company for a few years
– but after that order must be restored. Government can be there for short-term but not the long-term. This is exactly what happened with a company in Finland called Meyer Turku where the Government was there for a couple of years.
“The Finnish Government paid for a stake so they could have a good start-up. When everything was going well, the Government left. It has to be private in the long-term.”
He pointed to the types of vessels he believes smaller European nations can produce successfully – and to areas where it’s impossible to compete with the huge Asian yards.
He said: “Finland has done well in one particular respect and that is specialisation.
“We have become good at making ice-breakers and cruise ships and we are good at these niche markets.
“We have also managed to develop good networks for sub-contractors and we have about 2,000 companies in Finland now working in the maritime sector.
“We have developed a maritime cluster of all different types of expertise.
“Europe needs to look at projects where you need special knowledge – ice breakers, research vessels, military work and more complicated cargo and passenger vessels.
“I realise the competition is tough but the Scottish yard can be successful if it goes for the niche markets.”