Ferries Scotland: SNP told to hand Ferguson Marine 'distinguished future' with urgent investment

SNP ministers have been told to bring forward urgent investment to give the publicly-owned Ferguson Marine shipyard a “distinguished and positive future”.

The plea comes from a cross-party committee of MSPs that has highlighted multiple and repeated failings at the Port Glasgow site. These cited failings include leadership and board instability, inadequate internal audits, serious weaknesses in contractor oversight, and governance failures around exit packages for senior staff.

Work on the MV Glen Rosa is not now expected to be completed until spring next year (Picture: Jeff J Mitchell) | Getty Images

These issues, together with the delays and huge cost overruns associated with the Glen Sannox and Glen Rosa vessels, have caused significant reputational damage to the yard. Holyrood’s Public Audit Committee now said it believed urgent investment was needed to make sure it could be competitive once again.

During the committee’s consideration, Ferguson Marine announced the cost of the MV Glen Rosa had risen to £185 million and was delayed once more, this time until early 2026.

READ MORE: Ferries Scotland: The £4.4m fund for suffering island businesses as Caledonian Isles still out of action

The two ships, which were meant to be delivered in 2018, will now cost an estimated £460m – up from the original price tag of £97m.

The committee has expressed its serious concern over the increased cost and further delay to the ferry and has now called on the Scottish Government to give urgent clarification about where the additional funds are coming from.

The new report also notes the yard does not have any further orders lined up beyond its existing contract to deliver on the MV Glen Rosa.

Today’s report also warns the organisation has failed to meet the standards expected of a publicly funded body. The committee has called on the Scottish Government to urgently improve its oversight to address some of the long-standing weaknesses at the yard.

READ MORE: CalMac warns of 'multiple islands' disruption if Caledonian Isles ferry repairs prolonged

Committee convener Richard Leonard said: “It is clear to the Public Audit Committee that there has been a long-standing weakness in the management, governance and financial sustainability of this yard. That there are currently no further orders raises significant concerns for us about the future of the last commercial shipyard on the Clyde and its workforce.

Labour MSP Richard Leonard

“This is a state-owned yard and the Scottish Government must do more to ensure that not only is its future secure, but that the MV Glen Rosa can be delivered as soon as possible. There has to be better oversight and governance of the work that is ongoing.”

He added: “There is no doubt that the yard has suffered significant reputational damage and that the workers at Ferguson Marine deserve better, the communities waiting for a new ferry deserve better and the people of Scotland deserve better.

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“But it doesn’t have to be this way. Our committee believes that the yard can once again be competitive. There is no shortage of potential work. With investment, and better oversight, this yard, which has a distinctive and proud history, can have a distinguished and positive future.”

Louise Gilmour, GMB Scotland secretary, said workers must be allowed to restore their reputation, which the union claimed had been unfairly damaged by delays and overspends affecting the Glen Sannox and Glen Rosa.

GMB Scotland secretary Louise Gilmour | Andrew Cawley

She said: “People have short memories, but, before these misjudged and ill-planned contracts, this yard successfully built a third of CalMac’s current fleet, including the original Lord of the Isles.

“Workers must now be given the chance to restore what was a worldwide reputation for excellence that has been damaged through no fault of their own. Before being turned into a political football, they delivered a steady stream of ferries serving Scotland’s islands and must be allowed to do so again.”

A Scottish Government spokesperson said the “decision to take Ferguson Marine into public ownership saved the last commercial shipyard on the Clyde”.

“We are ensuring the long-term future of the yard and the workforce and will invest up to £14.2 million in the yard over the next two years in order to help it modernise and secure future business,” the spokespersons said.

"Scottish ministers expressed their disappointment and frustration to the board of FMPG at the confirmation of a further delay and increased estimated cost to deliver the Glen Rosa. They also made it clear to the yard’s leadership that it must take immediate and sustained action to restore trust, enforce delivery discipline, and bring the project under control.

“This will be delivered alongside the development of the business’s future commercial strategy, which is being spearheaded by a new CEO to enable Ferguson Marine to win new business in its target markets.”