Fabrication yard campaign angry at lack of government guarantees

Campaigners fighting to save an Outer Hebrides fabrication yard have hit out at the Scottish Government and called for new operators to step in.

The future of BiFab fabrication yards on Lewis and Fife are in even more doubt after its Canadian owners withdrew a bid for a major contract.

DF Barnes had been negotiating to build jackets for wind turbines to be installed off Fife.

But the company has pulled out, citing a refusal by the Scottish Government to provide financial guarantees.

All three fabrication yards – at Burntisland, Methil and Arnish near Stornoway – are mothballed.

B i Fa b’s board of directors said it was “now considering the path forward for the company”.

The Action for Arnish group yesterday said: “The refusal of the

Scottish Government to underwrite the contract is disappointing, to say the least.

“This outcome reinforces our view that the whole relationship involving the Scottish Government, Highlands and Islands Enterprise and BiFab must come under review and the first step towards that is to have transparency over the Arnish deal.”

Economy Secretary

Fiona Hyslop said: “The situation at BiFab is serious.” As a minority shareholder the amount of funding ministers could provide had been “exhausted”, she added.

The Sco tt ish Government said it had already invested £ 37.4m through a combination of equity and loan facilities and converted this to a 32.4% equity stake.

All three BiFab fabrication yards are mothballed.