The Scottish Government’s pledge to award four new vessels directly to Ferguson Marine has been thrown into doubt after Scotland’s most senior transport official confirmed that a direct award cannot be made “under the law as it stands.”
Transport Scotland chief executive Alison Irvine made the admission under questioning from Reform UK Transport Spokesman Graham Simpson MSP at Holyrood’s Transport Committee today.
Mr Simpson asked whether, under the law as it currently stands, the Scottish Government could make the promised direct award to the publicly owned Port Glasgow shipyard.
“No, not under the law as it stands,” Ms Irvine replied.
The exchange raises serious questions over the Scottish Government’s announcement in March that it intended to directly award Ferguson Marine work on four vessels – two small ferries and two other vessels – subject to procurement, subsidy control and value-for-money requirements.
It also raises questions over what Ministers knew about the legal obstacles when they made the announcement.
Earlier this month, Economy, Tourism and Transport Secretary Stephen Flynn told the Transport Committee that there were “very significant legal matters” surrounding the proposed award, including compliance with subsidy control legislation.
When Mr Simpson put it to him that he could not promise a direct award because of the Subsidy Control Act 2022, Mr Flynn said: “As a member of the Government, I cannot sit here and say that we will circumvent the UK Government’s subsidy control laws.”
Today’s evidence from Transport Scotland now puts the legal obstacle at the heart of the Government’s promise to secure future work for the yard.
Graham Simpson MSP, Reform UK Transport Spokesman, said: “This is a hugely significant admission. The Scottish Government announced four new vessels for Ferguson Marine and presented it as a lifeline for the yard and its workforce.”
“Now the chief executive of Transport Scotland has confirmed that, under the law as it stands, the Government cannot make the direct award it promised. That raises a very simple question: why did Ministers make this announcement before they knew they could legally deliver it. Workers at Ferguson Marine deserve certainty, not political promises that may not be deliverable.”
“I want Ferguson Marine to have a future. I want the yard winning work, building ships and securing skilled jobs on the Clyde. But announcements are not contracts and Ministers cannot wish away procurement and subsidy law. The Government now needs to explain exactly what has to change before these contracts can be awarded, whether that change is actually achievable, and when Ferguson Marine can expect a legally binding contract. Until Ministers can answer those questions, their promise of four new vessels is just that – a promise.”
When Graham Simpson subsequently put it to Mr Flynn that he could not promise the direct award because of the Subsidy Control Act 2022, Mr Flynn replied: “As a member of the Government, I cannot sit here and say that we will circumvent the UK Government’s subsidy control laws.”