Failing ferry bosses will still get £47k in bonuses

Yousaf claims he’s powerless to stop payouts – as watchdog slates SNP ‘folly’

EXECUTIVES at scotland’s beleaguered nationalised shipyard are still being paid bumper bonuses – even though two promised ferries remain unfinished and hugely over-budget.

Payments of more than £47,000 had to be made to Ferguson Marine bosses because they are ‘a contractual obligation’, First Minister Humza Yousaf said.

scotland’s spending watchdog also warned the cost to complete the vessels is still soaring and condemned the SNP’s estimates as ‘folly’.

Mr Yousaf said he had asked Ferguson not to pay bonuses to executives but claimed he was powerless to prevent them – even though the yard is owned by the scottish government.

He refused to say how much the vessels at the heart of the ferry fiasco will ultimately cost taxpayers after scottish Tory leader Douglas Ross demanded Mr Yousaf ‘stop the secrecy’.

at First Minister’s Questions, Mr Ross raised the issue of Ferguson bosses being paid more than £47,000 in bonuses this year after pay

‘What on earth could these bonuses be for?

ments totalling £87,000 the previous financial year. He said: ‘The two ferries are not fit to sail, the costs continue to spiral out of control and islanders continue to be left without vital, lifeline services. so, First Minister, what on earth could these bonuses be for?’

Mr Yousaf replied: ‘The former Deputy First Minister [John swinney] made clear his anger. We share that anger. I share that anger at the fact bonuses have been paid.

‘The bonuses that have been paid relate to a decision made by the remuneration committee of Ferguson Marine without consultation with the government in November 2022.

‘Those bonuses – I have asked if they can not be paid and the advice coming back is that they are a contractual obligation.’

scottish government officials claimed they were unaware of the details of bonuses and the yard did not respond to questions.

at Holyrood’s public audit committee yesterday, the spending watchdog chief, auditor general stephen Boyle, also expressed bewilderment at bonuses being handed to those running the Port glasgow yard.

Warning the money was ‘paid without effective governance’, he told MSPS: ‘We consider it unacceptable £87,000 was paid in bonuses.

‘Not in an ideological perspective, but the payments were made without clear framework that was designed to support the payment of bonuses.’ He said he was unsure if the money could be recovered when asked by MSP Willie Coffey.

The bonuses were recommended by Ferguson’s £2,500-a-day former ‘turnaround director’ Tim Hair, who was hired after the yard was nationalised in august 2019.

Commenting on the recommendation, Mr Boyle said: ‘In our view that wasn’t sufficiently robust.’

The £97million contract SNP ministers awarded Ferguson to build two ferries failed to include standard guarantees – allowing the costs to soar.

The latest prediction from the yard is the glen sannox will be in service by May while Hull 802 will not be ready until January 2024. Mr Ross said: ‘Humza Yousaf needs to stop the secrecy, be honest for a change and tell us how much higher the real cost to taxpayers for these ferries is going to be.’ The scottish government has suggested the vessels’ cost would come in at around £300million.

Mr Boyle said: ‘It would be folly to suggest that that’s a reliable final number that will be spent.’

Committee convener Richard leonard said Ferguson and the scottish government have been asked to give evidence as ‘serious questions’ remain, including over the vessels’ cost and bonuses.