State-owned ferry firm hits back at Ferguson yard over disastrous contract

THE shipyard at the centre of a disastrous ferry contract had “insufficient manpower” and ran out of money because it started building the vessels before their design was finalised, the stateowned firm behind Calmac has insisted.

Caledonian Maritime Assets Ltd (CMAL) said Ferguson Marine “deviated from normal shipbuilding practice by commencing fabrication before their design was settled”.

In written evidence to a Holyrood inquiry, it added: “In our analysis, it was this decision that caused Ferguson to run out of money and progress to reach a standstill.”

Ferguson Marine in Port Glasgow was handed a £97 million contract to build two new Calmac ferries in 2015. But delays and disputes have seen the total cost spiral to at least £230m, while the vessels will be around four years late.

Ferguson shipyard was owned by billionaire Jim Mccoll’s Clyde Blowers empire before it fell into administration and was nationalised last year.

Holyrood’s Rural Economy and Connectivity Committee is now probing how the contract went so badly wrong.

CMAL told MSPS the vessels were not new technology, and dozens of ships of a similar kind have been built by other yards across Europe.

It accused Mr Mccoll of making “wholly false” claims to MSPS and strongly refuted his assertion that it had refused to engage in a mediation process.

It said the billionaire had “significantly exaggerated the extent of design changes proposed by CMAL” in relation to the ferries, insisting most were initiated by Ferguson and fell within budget.

The state-owned firm said design changes proposed by Ferguson “would have had a significant negative impact on

Calmac’s operations”. It rejected claims from Mr Mccoll that the price of the two vessels was announced by First Minister Nicola Sturgeon prior to the agreement of that figure by the shipyard.

CMAL said it is a custodian of public money and could not make “ex gratia payments” or “gifts” to cover funding shortfalls.

It said a claim submitted by Ferguson had no legal basis.

It told MSPS: “We believe that insufficient manpower has been available for Ferguson to fabricate and assemble the hulls as the contracts anticipate.

“The sheer volume of personnel needed on the shop floor for a project of this scale, given the footprint of the facility, has rarely been seen.”

Mr Mccoll, a member of Ms Sturgeon’s Council of Economic Advisers, previously said he had been “shafted” by the Scottish Government and called for a full public inquiry.

The two new dual-fuel Calmac ferries at the centre of the controversy are earmarked for Arran and the Hebrides.

Kevin Hobbs, CEO of CMAL, and James Anderson, its director of vessels, are due to give evidence to MSPS tomorrow.