Scottish Liberal Democrat economy spokesperson Jamie Greene has pressed the First Minister to explain why most of the £14.2 million promised for upgrades at Ferguson Marine has still not been delivered, warning that the shipyard is being left without work while foreign competitors secure new contracts.
Transport Scotland confirmed this week that two new Northern Isles freight vessels will be built abroad, with the shortlist consisting of two shipyards in China and two in Turkey. Ferguson Marine in Port Glasgow, which is publicly owned, was not invited to tender.
The yard continues to wait for the bulk of the £14.2 million investment pledged by ministers more than a year ago.
Speaking at First Minister’s Questions, Greene said: “The First Minister will be aware that the shortlist for the two new freight vessels for the Northern Isles will be announced shortly. I welcome that the new vessels are coming. But it’s been reported that that shortlist will contain two yards in China and two yards in Turkey. Meanwhile, we do have a shipyard some 70 miles from this parliament that is owned by the Scottish Government, funded by the Scottish taxpayer and is absolutely desperate for new work.”
He continued: “First Minister, my question is simply when will Scottish Government procurement policy give adequate weighting to the economic benefits that awarding Scottish shipyards some contracts would reap? And when will he give this yard some contracts finally?”
After the exchange, Greene accused the SNP of failing to back domestic shipbuilding. “The SNP have sent votes of confidence in shipbuilding across the globe, but very little in our own. Promised government investment in Ferguson lies at the bottom of the sea floor, and we still have no clarity about what awaits the yard once key financial guarantees run out in a matter of days.”
He added: “We urgently need a clear timeline for when fresh guarantees can be provided and when the yard can expect the promised but as yet undelivered investment it needs to thrive. Ministers must also explain to taxpayers how large the blank cheque really is when it comes to keeping Ferguson open without any major new contracts.”
The government’s letter of comfort to Ferguson, which provides financial guarantees to support the yard, is due to expire in October 2025.
Sadly, this seems to be an issue with the Scottish government. They complain that not enough ships are being built in Scotland then complain about and obstruct funding military projects when they are being built!
The reply by the First Minister (John Swinney)
“No yard in the United Kingdom submitted returns on the northern isles freight contracts. Ferguson Marine did not enter the competition, as the vessels are too large to be accommodated at the shipyard, so there is a reason why that was the case …”
Does the £14.2 investment include increasing the yards size and therfore its ability to construct larger vessels or is it only concerened with upgrading the yards machinery as posted on website on 05/03/2025
“To improve its Shipbuilding manufacturing capability and capacity FMPG have a requirement to purchase a CNC High Speed Plasma / Oxy-Gas Profile Cutting Machine that will increase FMPGs throughput and quality performance in Carbon Steel, Stainless Steel and Aluminium cutting.”
“To improve its Shipbuilding manufacturing capability and capacity FMPG have a requirement to purchase a Small Semi-Automated Panel Line that will increase FMPGs throughput and quality performance in the manufacture of Rigid Panels.”
If Sweeny was/is being factual and the yard was too small for the contact, the question was/is debatable.
Bet the case of the yard size is rubbish. Unbelievable really that a government pays to keep a yard open but doesn’t give them work. How has this party stayed in power? Just blame everyone else? Local economic benefits? How many of these new ferries are being built in Scotland??
I am a Scot, but no fan of the SNP virtually everything they say or do is either wrong or leads to a disaster. I realise it’s a pretty good bet to describe anything that the SNP utter as “Rubbish” but amazingly on this occasion he is just stating the Bloody Obvious it’s a simply verified geographical fact.
If you go onto Google Earth or just look at the header photo you’ll see the problem, they use a slipway and it’s virtually impossible to increase its length due to the constraints of the yard. The roundabout is a junction on the A8 Dual Carriageway so it ain’t going to be moved nor can they expand east or west either due to Newark Castle and Coronation Park.
To be perfectly honest the yard is so limited it’s probably a waste of money investing any more money in it ! Other than small Ferrries or sub assemblies for BAe it isn’t fit for purpose.
I actually think that HMG and the SNP should actually use this as an opportunity to invest and move the yard to Inchgreen and save one of the U.K greatest bit of Marine Industrial infrastructure at the same time. The Inchgreen Drydock is one of the very few U.K docks that can take the QE carriers 24/7/365 the other being the H&W at Belfast.
If the yard is too small for the size of boats currently being ordered, in the short term Ferguson Marine need to improve their fabrication equipment – which they are doing according to this article, and bid for sections of ships being built by other yards – which they are already doing having been sub-contracted to build sections for the type 26 project.
However without a modernisation strategy it is difficult to see the yard competing in the long term.
The very constrained Ferguson Marine site needs serious investment to rationalise from a series of smaller buildings into a site containing a very large fabrication hall and support structures making best use of the limited space.
At present half the site appears to occupied by internal access road and a car park.
Non of this is helped by the Scottish Government and it’s industrial strategy.
The SNP is conflicted by their inept management of the economy, which tries to protect jobs superficially while avoiding being seen to support anything that shows UK government industrial policy initiatives are beneficial to Scotland.
Would a better way to support fergusons be for the Scottish government to invest in a ship building facility at inchgreen, build new shed, new equipment etc, and then lease out at peppercorn rent tomfergusons?
We need shipbuilding, it’s jobs, it’s skills, the ability to support an island nation
Spot on and it would mean Faslane wouldn’t need to buy new drydocks for Faslane and they have a QE sized dock with 24/7/365 access, you don’t need to wait for the ideal tide conditions to get into Rosyth anymore.