Sweeney stands up for Scottish shipbuilders, offers solution

Labour MSP Paul Sweeney has criticised the Scottish Government’s procurement strategy, arguing that its failure to integrate social value has directly contributed to Scotland losing out on shipbuilding contracts.

His comments come after the government awarded a £175 million contract for seven new ferries—part of the Small Vessel Replacement Programme (SVRP)—to Poland’s Remontowa shipyard, rather than a Scottish yard such as Ferguson Marine.

Speaking in the Scottish Parliament, Sweeney challenged Transport Secretary Fiona Hyslop, asking:

“What weighting was social value given in the tender procedure?”

Hyslop declined to answer, citing the standstill period in the procurement process. She instead pointed to wider ferry replacement efforts, highlighting ongoing investment in port facilities and plans to order 10 new ships within the next 12 months.

Sweeney, however, argued that the issue is not just about replacing vessels but about how contracts are awarded. He pointed out a critical omission in Scotland’s procurement rules—unlike the UK Government and other devolved administrations, Scotland has no minimum social value weighting in its procurement process.

“In every UK nation, there is a minimum requirement for a 10% social value weighting—apart from in Scotland. That seems like a glaring omission.”

The MSP also argued that this structural failure puts Scottish shipyards at a disadvantage, explaining why publicly funded shipbuilding contracts continue to go to foreign yards rather than supporting Scotland’s own industry.

Sweeney pointed to CMAL’s evaluation criteria, which split the weighting 65% technical and 35% financial, but failed to account for social value.

“No wonder the contract went overseas if we are not prepared to put in place the fundamental basis for our yards to be competitive.”

By contrast, the UK Government mandates a 10% minimum social value weighting, ensuring that taxpayer-funded contracts support domestic jobs, skills, and economic growth. This approach is also common in other shipbuilding nations, including Norway and Australia.

Sweeney noted that Maritime UK’s recommendations on shipbuilding had explicitly called for stronger social value considerations, yet the Scottish Government has ignored those calls.

His remarks come at a time when Scotland has been losing contracts to international competitors, including:

• The Northern Lighthouse Board’s latest vessel contract, which went to Spain.
• The CalMac ferry contract, now awarded to Poland.
• Earlier shipbuilding orders that have gone to yards in Turkey.

Sweeney warned that without changes to procurement policy, this trend will continue, shutting Scottish shipyards out of future contracts. The former shipyard worker also highlighted alternative approaches that could have ensured Scottish shipyards benefited from public contracts.

• Liverpool’s Mersey ferry contract, awarded to Damen Shipyards (Netherlands), was structured so that Cammell Laird still received a share of the work.
• Australia’s ‘Common User Facility’ model in Adelaide and Perth allows state-owned shipyard infrastructure to be used by any winning contractor, ensuring that economic benefits stay within the country.

“More can be done here. The Australian model allows the facility and economic benefits to come into the local community without favouring any one company.”

Fellow MSP Edward Mountain echoed Sweeney’s concerns, suggesting that a split contract—where some ferries were built in Scotland—could have kept jobs at Ferguson Marine.

“The whole issue could have been resolved if, as part of the contract that was given to the overseas yard, two ferries were built in Scotland. That would have spread the risk and maybe enabled Ferguson’s yard to stay open.”

Sweeney agreed, arguing that the contract structure had effectively locked Scottish yards out entirely, leaving no subcontracting opportunities for domestic shipbuilders.

Sweeney’s intervention has put renewed pressure on the Scottish Government to rethink its procurement strategy. He insists that future contracts must:

• Include a social value weighting to bring Scotland in line with the UK and international best practices.
• Structure contracts to allow domestic yards to participate, even if the main award goes to a foreign firm.
• Explore state-owned shipyard models to ensure that publicly funded infrastructure benefits local communities.

At a time when Scotland’s shipbuilding sector faces increasing challenges, Sweeney’s comments highlight the urgent need for policy change. Without action, he warns, Scotland will continue to see publicly funded shipbuilding jobs exported abroad, while its own shipyards are left struggling to survive.