YARD SCANDAL BILLIONAIRE’S FINANCE WORK FOR STURGEON
Ferry row McColl still advising Government
The billionaire tax exile behind the Ferguson Marine ferry scandal is continuing to advise the Scottish Government on economics.
JimMc Coll is still a member of Nicola Sturgeon’s Council of Economic Advisers, despite his firm being handed almost £100 million of public money for two Caledonian MacBrayne vessels it failed to complete.
The businessman is now involved in an increasingly acrimonious dispute with ministers, and has threatened to sue Finance Secretary Derek Mackay.
But when we asked the Scottish Government whether the Monaco-based tycoon had been dropped from its economics advisory panel, a spokeswoman confirmed he remained a member.
She said: “The Council of Economic Advisers is an important body with a diverse range of expertise offering advice to ministers on broad economic issues.
“Membership has evolved over time to ensure the council has the required expertise to address its remit and focus at any given period.
“Following the sad death of Sir James Mirrlees and the departure of Frances Ruane, membership is currently under review.”
McColl wants to testify under oath to a Holyrood inquiry after his Port Glasgow shipyard was nationalised last year. He was hailed a hero when he rescued Ferguson Marine from administration in 2014 through his Clyde Blowers Capital company.
The following year, he won a £ 97mi l lion contract to build two ferries through Caledonian Maritime Assets.
The Government also pumped money into the shipyard in the form of loans and business development grants. But a bitter dispute over the cost and delivery of the ships developed as the contract overran its intended 2018 completion date.
Ferguson Marine then crashed into administration in August and was taken over by the Government.
Mac kay has confirmed taxpayers are now expected to have to fork out about £100 million extra to complete the CalMac ferries.
Documents released in December included a report from a corporate turnaround expert who was drafted in by Mackay to assess Ferguson.
It claimed former executives had shown poor project management and that there had been a confusing building process.
The report added that both vessels had been allowed to rust and that the yard was badly managed and covered in debris. The first of the vessels is now not expected to be ready until the end of 2021. It has even been suggested that scrapping them and starting again could be the best option.
McCol l has denied the claims in the corporate turnaround report and said both the yard and the ves s e ls were in good condition when they were handed to administrators.
But Mackay said: “It is difficult to overemphasise the disastrous impact that the absence of proper management processes had on the yard.” Labour MSP Neil Findlay has questioned McColl’ s continued involvement as an adviser.
He said: “How can someone who lives as a tax exile in Monaco and whose disastrous handling of the ferries contract will cost the taxpayer another £ 100million continue to advise the First Minister on economics?”
McColl did not respond to a request for comment.