Scottish Government takes shipyard into public control

Derek Mckay

The government said the agreement will enable completion of the two ferries being built there for Caledonian Maritime Assets Ltd (CMAL).

It also said the move will ensure work continues towards delivery of the other vessels currently under construction and secure a future for the yard through continuity of employment for the workforce.

Ministers will now operate the yard and its 300-strong workforce under a management agreement with Deloitte, which will see the Scottish government buy the facility if no private buyer is found within four weeks.

The development follows two years of extensive discussions with partners to try and find a workable commercial solution.

Representatives of Deloitte addressed workers gathered at the Port Glasgow shipyard on Friday morning along with and Finance Secretary Derek Mackay who outlined the Scottish Government’s plan for the yard.

A newly-appointed turnaround director will now take forward steps to stabilise the business and support the recruitment of an incoming management team, including a chief executive officer.

Mr Mackay said: “We have always been clear that we want to complete the vessels, secure jobs and give the yard a future. I am here today to ensure that we hit the ground running in making that happen and to reassure Ferguson’s excellent staff of the government’s commitment.

“Public control will provide much-needed continuity of employment now and ensure the completion of the CMAL ferry contracts at the lowest possible cost to the taxpayer. It is absolutely essential that the outstanding contracts to build these two ferries are completed in order to sustain the Clyde and Hebrides Ferry Services network and provide vital support for the economies of our island communities.

“The alternative was for the government to stand aside while the company went into administration, resulting in the jobs being lost and the vessels not being completed. That was not an outcome I was willing to consider.

“We are now working to put in place a management team which will refocus all efforts on completing this vital government contract. We will also be working closely with staff and the trades unions – as well as suppliers and customers - to achieve the best possible outcome for the yard.”

GMB Scotland Organiser and CSEU Scotland Chair, Gary Cook, said: “Nationalisation secures the immediate future of the yard and that is a very welcome development, particularly after all the recent uncertainty.

“Our members were caught in the middle of a situation that had nothing to do with them and their relief will be palpable. It is five years since the yard went bust and the Scottish Government has prevented that from happening again.

“We can now look to the future and everyone should do so with a sense of purpose. With vision and competency we can get on with building the ships Scotland needs and together we can grow jobs and prosperity on the lower Clyde.”

Unite Scottish Secretary, Pat Rafferty, said: “Unite fully supports the actions of the Scottish Government to intervene and nationalise Ferguson Marine shipyards. It’s clear at this stage that nationalisation was the only serious option on the table to save the yard and more than 350 highly skilled jobs. The Scottish Government have rightly acknowledged their obligations to the workforce, and the people the ferries would serve which must be acknowledged.

“Unite also welcomes the fact that the trade unions have been fully engaged in this process so far. This must remain the case going forward to ensure that the ferries on the existing contract become operable and future contracts can be secured. The yard can have a very successful future and we must all now play our part to make sure this happens.”