Derek Mackay confirms ‘nationalisation’ plan for Ferguson Marine shipyard

Derek Mackay has started the public ownership process
Derek Mackay has started the public ownership process
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The Scottish Government is to take the Ferguson Marine shipyard into public ownership after three offers from commercial firms were rejected.

The future of the Clyde yard was plunged into doubt earlier this year, after a bitter stand-off with publicly-owned ferry firm Cal Mac over construction of two new ships. Costs on the original £97m contract spiralled with neither side prepared to meet the additional bill, resulting in administrators being called in.

Finance Secretary Derek Mackay has already set out plans to nationalise the yard top secure the 300 jobs at stake, but interest was invited from commercial operators which resulted in three indicative offers. But administrators have concluded these are either not capable of being executed or do not represent a better outcome for creditors than a sale of the business to the Scottish Government.

But Mr Mackay confirmed today he has started legal discussion with administrators to conclude the process of taking the Ferguson Marine shipyard into public ownership.

“We have always been clear that we want to complete the vessels, secure jobs and give the yard a future," he said.

READ MORE: Ferguson shipyard on the Clyde set to enter administration

“Administrators have concluded that despite other bids being submitted for the yard, the Scottish Government’s offer presents the best outcome for creditors.

“We are working with the administrators to bring the yard into public ownership. I will be there on Monday to meet with the excellent workforce and reiterate the Scottish Government’s commitment to achieving the best possible outcome for the yard and its employees.

“While there is still more to be done, our actions have ensured that there will be a future for Fergusons.”

Following a sale of business process, administrators have concluded that three indicative offers for the business received from commercial parties are either not capable of being executed or do not represent a better outcome for creditors than a sale of the business to the Scottish Government. Administrators are now in discussion with Scottish Ministers to agree final terms of a sale and expect this to be executed within the next four weeks.