£90k reward for failure
Bosses pocket ‘fat-cat bonuses’ despite ferries being six years late and £240m over budget
FERRY bosses have been handed nearly £90,000 in ‘fat-cat bonuses’ despite two new vessels being six years late and £240million over budget.
Scotland’s spending watchdog has revealed the performance-related payments were made to six employees at Ferguson Marine Port Glasgow (FMPG) last year.
The rewards were dished out due to the yard finally achieving a milestone on the shambolic contract to build two new CalMac ferries.
The payments were made without the approval of the Scottish Government, despite it owning the Port Glasgow shipyard.
The Audit Scotland report also disclosed the total cost is expected to soar by £9.5million to £293million – although the final bill rises by a further £45million due to a loan being written off.
It also raises doubts about the longer-term viability of the shipyard, despite sustained Scottish Government investment.
Scottish Labour transport spokesman Neil Bibby said: ‘Islanders, taxpayers and yard workers are all being failed.
‘While the public purse picks up the tab for spiralling costs, senior management are being handed fat-cat bonuses with no scrutiny.’
Yesterday’s Audit Scotland ‘section 22 report’ was lodged in the Scottish parliament to highlight serious concerns to MSPs.
The original cost of the two ferries was supposed to be £97million but it has been beset by delays and a dispute with the previous private operator of the yard, which led to it plunging into administration and being nationalised.
The latest projections are that the first vessel, Glen Sannox, will not be completed until the first quarter of 2024 – six years late – and the second won’t be operating until the summer of that year.
But the report said the cost remains ‘uncertain’, and added: ‘Current FMPG estimates suggest further funding of around £9.5million may be required, meaning a total cost of £293million.’
It said performance-related payments of £87,000 were made to the senior management team during 2021/22. But it added: ‘It is not sufficiently clear how performance was assessed. FMPG did not inform, or seek approval from, the Scottish Government for these payments. It should have done so as a matter of good practice.’
Stephen Boyle, Auditor General for Scotland, said: ‘It is unacceptable bonuses were awarded to senior managers without proper governance for such payments.
The Scottish Government needs to make sure its rules over pay are followed by this public body.’
Scottish Tory transport spokesman Graham Simpson said: ‘Betrayed islanders will be wondering when this SNP ferry fiasco will ever end. It is also deeply concerning widespread failure has been so handsomely rewarded.’
A Scottish Government spokesman said: ‘It is a concern that FMPG did not inform or seek approval from the Scottish Government before bonus payments were paid to senior managers.’
David Tydeman, chief executive of FMPG, said: ‘We have taken on board the remarks from the Auditor General for Scotland.’
‘Public purse picks up the tab’