The Press and Journal (Inverness, Highlands, and Islands)
Union leaders warn money to save manufacturing yards could be lost
The Scottish Government has been accused of a “shocking” failure of BiFab workers in Fife and Lewis following reports taxpayers stand to lose up to £ 52.4 million on the renewables manufacturer.
Opposition politicians urged Nicola Sturgeon’s administration to draw up an urgent industrial strategy to save jobs after the latest twist in the saga involving the yards.
Union leaders warned Scottish Government cash in the form of its £37.4m bail- out that took the company from the brink of administration before it was bought by Canadian firm DF Barnes and a £15m loan could be lost.
The fears were expressed as reports emerged at the weekend the firm was on the brink of financial collapse.
In addition, it was reported ministers signed off an additional £ 30m guarantee to suppor t
BiFab but decided against issuing the cash after receiving legal advice suggesting that to do so would breach EU state aid regulations.
According to the Herald on Sunday, the change of heart came after BiFab failed to win any work on Scotland’s largest offshore windfarm – the multibillionpound Seagreen project near the firm’s
Burntisland and Methil yards.
A Scottish Government spokeswoman pointed out they do not take management and operational decisions, adding: “Without majority shareholder investment in the company we have exhausted the options for what financial support we can provide legally.”