Ferries fiasco Swinney denies he gave the ‘final nod’ to Calmac contract
JOHN Swinney has admitted giving “budget approval” for the contract that led to the Calmac ferries fiasco, but denied it amounted to a “final nod”.
The Deputy First Minister was speaking after Scottish Tory leader Douglas Ross accused Nicola Sturgeon of “cover-up and corruption” over the now infamous deal.
Nicola Sturgeon insisted then transport minister Derek Mackay signed off on the contract, despite serious misgivings from the stateowned ferry procurement body Caledonian Maritime Assets Ltd (CMAL).
But Mr Ross told FMQS an email trail released by the Scottish Government on Wednesday showed Mr Swinney was asked for his approval by officials after Mr Mackay gave his.
The emails showed the then finance secretary was asked to confirm “the absence of banana skins”, and only afterwards did an official say “the way is clear to award” the contract.
A Scottish Government blunder meant part of the material was released with incompetent redactions, allowing secret blacked-out text to be revealed through a
simple cut-and-paste move. This showed Mr Mackay, who left Holyrood last year after he resigned over sleazy texts, was warned on 8 October 2015 about possible legal challenges arising from awarding the £97m deal for two ferries to the Ferguson Marine yard on the Clyde.
“The impact of a successful legal challenge could be high – in the worst case the contract could be declared ineffective – and a challenge could be brought at any time as the contract terms are not being made public.”
However the redacted advice also said there was little sign of such a move by any rival yards whose bids failed.
Despite the warnings, and CMAL’S grave concerns about the lack of a refund guarantee which would protect taxpayers in the event of problems, Mr Mackay signed off the contract.
On 9 October 2015, Mr Swinney was then asked to confirm there were “no financial / procurement issues that he might want further reassurance on”.
After speaking to him on the phone, an official reported Mr Swinney “now understands the background and that Mr Mackay has cleared the proposal”, adding: “So the way ahead is clear.”
The ferry deal rapidly turned sour, with disputes between CMAL and Ferguson’s over design changes, delays and money leading to the yard going broke and being nationalised in 2019.
The boats are now five years behind schedule and £150m over budget.
Despite the reference to him understanding the background, Mr Swinney told reporters at Holyrood he was merely briefed on the previously agreed price tag staying the same.
Asked if he gave the deal the final nod, the deputy First Minister said: “What I gave was the budget approval, which I had given in August. And the budget approval I gave in August of 2015, the officials assured me on October 9 did not need to be changed.
“The finance secretary does not approve all contracts, if that was the case there would be significant inefficiency in the processing of contracts within Government.”
He went on: “I didn’t give it the final nod. I was given assurance that the budget provision that I had put in place in August was adequate for the contractual arrangements. I was given the assurance that no additional financial support was required.
“As finance secretary I was ultimately responsible for the spending of public money and the balancing of the budget. But on other issues ministers would take decisions and I would provide the finance.”
He admitted he could, in theory, have vetoed the deal, but said it would have created legal and financial jeopardy for the government, even though CMAL had already suggested pulling out.
At FMQS, Mr Ross accused Mr Swinney of “signing off” the deal.
The First Minister denied it. “The Deputy First Minister did not take the decision, he wasn’t even copied in to the advice of October 8 that was the basis of that decision, he was simply briefed on that decision after it was taken – not even at his request, but on the initiative of an official.
“It is not unusual for finance secretaries to be briefed on all sorts of decisions that involve spending money – it does not mean the finance secretary has actually taken the decision.”
Mr Ross continued: “It’s very clear in here how officials escalated to John Swinney, waiting for his green light. In these emails, civil servants state that the Deputy First Minister confirmed the ‘absence of banana skins’.
“John Swinney couldn’t find a single banana skin, when they were absolutely littered around him – there were more banana skins in this project than in the monkey house at Edinburgh Zoo.
“The most crucial document in this affair is still missing – the one that explains why John Swinney charged ahead against expert advice.”
He said Mr Swinney should tell parliament “why he forged ahead with the deal that has cost taxpayers a quarter of a billion pounds”, adding there was a “stench of cover-up and corruption” around the issue.
Liberal Democrat MSP Willie Rennie added: “At least the amateurism of the SNP has enabled us to establish that ministers were advised that the ferries contract was potentially unlawful.
“That multi-million pound contracts are routinely signed off by one line emails even when there is a legal risk reveals a causal disregard for the public purse and the jobs and livelihoods of thousands of people.
“This makes it inevitable that there must be a public inquiry into this shocking waste of public funds.”
The impact of a successful legal challenge could be high