Faulty ferries may never set sail as costs soar to £240m

MULTIPLE failures have led to a risk that two lifeline ferries at the centre of cost and building overruns at a state-owned shipyard may never be put into service, financial watchdogs have warned.

The concerns have surfaced in a scathing report from public spending watchdog Audit Scotland, which says that major problems remain unresolved at the Port Glasgow shipyard that is constructing the ferries, adding costs of the project have soared to at least £240 million – over £40m more than the last estimate.

There are now more faults with the ferries that need resolved than when the Scottish Government took control of the shipyard at the end of 2019.

The new costs, which now include £45m of “lost” Scottish Government loans, are two-and-ahalf times the original contract price and more than three times the estimated budget in Transport Scotland’s business case of around £72m.

But the new analysis has warned the price of the ferries could continue to soar as, more than two years after the Scottish Government took control, significant operational failures still need to be resolved and further remedial work on the vessels continues to be uncovered.

The state-owned Ferguson Marine (Port Glasgow) board has reported there was a risk that it has underestimated the amount of work required to complete the vessels.

Ferguson Marine told Audit Scotland that if the multiple issues are not resolved “there is a risk” that Caledonian Maritime Assets Ltd (CMAL), the taxpayer-funded firm which owns and procures ferries, “will not accept the completed vessels”.