Ferguson Marine ferry fiasco: ‘Turbulent’ economy means more cost increases cannot be ruled out – Wellbeing Economy Secretary Neil Gray

Two CalMac vessels being built at Port Glasgow yard already three times over budget

Further cost increases to the Ferguson Marine ferries cannot be ruled out because of high inflation and "incredibly turbulent economic factors", Wellbeing Economy Secretary Neil Gray has told MSPs.

He told the public audit committee on Thursday he hoped yet more funding to complete Glen Sannox [or ferry 801] and sister vessel 802 for CalMac would not be required.

However, the cabinet secretary said that was “not something I can absolutely guarantee".

Glen Sannox is due to be completed by the end of the year. Picture: John Devlin

He said: “We are facing incredibly turbulent economic factors”.

The two ferries, which were due to have been completed five years ago, will cost at least three times their original £97 million budget. They have needed an extra £202m since the Port Glasgow yard was nationalised by the Scottish Government in 2019 after going into administration.

The yard won the contract in 2015 while under the ownership of SNP-supporting businessman Jim McColl but it became beset with a series of design problems.

Glen Sannox is due to be finished by the end of this year and 802 – which has still to be named – by the end of 2024.

Ferry 802 under construction at Ferguson Marine. Picture: John Devlin

Mr Gray last month issued a rare “written authority” – the Scottish Government’s first for 16 years – to approve the completion of vessel 802 because an official review concluded it would be better value for money to build a new ferry from scratch.

Mr Gray said: “Lessons are being learned in terms of the delivery of 802 from what has happened with 801. Design difficulties led to cost increases and delays with 801.

"My hope is certainly that will reduce, minimise, any further delays and any other cost increases. Clearly it’s not something I can absolutely guarantee.”

He said everything possible was being done to expedite completion of the ferries as soon as possible and minimise costs.

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Mr Gray said: “I’m hopeful that we will be in a position where there won’t be any further requirement of funding, but it’s not something I can absolutely guarantee.

"We are in a very turbulent economic situation. That is going to have an impact but I’m hopeful that impact can be minimised as far as possible.

"There is a process to inform Parliament should there be any further requests, as there was last year, for any increased funding, and I’ll ensure that process is followed.”

However, the cabinet secretary said he would not resign if there were further significant cost increases or delays that were not his responsibility.

He told committee member Craig Hoy: “If I personally have done something that puts at risk the delivery of a Government agenda, then of course I would consider my position.

"But in this case, the issues we are talking about, particularly in more recent times, have not been due to ministers or Government issues. We are facing incredibly turbulent economic factors that are driving supply chain constraints, cost increases, not just in terms of parts but also labour, so it's incredibly unpredictable.

"So I cannot foresee a circumstance that this would be something that I would be resigning over unless it was something that I had done directly myself that had caused any of these issues. So far I don’t think that has been the case.”