A Clyde shipyard nationalised by the SNP Government faces an “uncertain” future as orders dry up, auditors have warned.
Ferguson Marine was rescued by the taxpayer in 2019 after the yard was pushed into administration by the cost of building two CalMac ferries, one of which is still unfinished.
The Port Glasgow yard is continuing work on the Glen Rosa but does not have any scheduled work beyond the ferry’s estimated handover date of September next year.
Audit Scotland, which scrutinises how public money is spent, tore into the management culture at Fergusons.
Before being sacked in March, the shipyard’s former chief executive David Tydeman agreed contract changes for a seconded employee without approval of the board – leaving the yard with £48,000 bill for unpaid income tax.
Auditors also said the yard provided no evidence on why it decided to award exit packages above the £95,000 public sector threshold to two employees, without the required advance ministerial approval.
Tydeman also received an exit package above this value, although this had ministerial approval.
The report found there are “multiple risks to the continued costs of completing the Glen Rosa” one of the two hugely delayed and over-budget ferries being built at the yard.
Initially expected to cost £97 million, the report found the bill for the Glen Rosa and Glen Sannox has risen to £317.8 million, as of October.
Auditors said Ferguson Marine has no further work confirmed once both ferries are complete with its only guaranteed income Scottish Government funding up to 2026.
The yard’s five-year business plan to 2029 had assumed direct award of the Scottish Government’s small vessel replacement programme but this is not possible because of UK subsidy law and Ferguson Marine is now one of six firms invited to tender for the contract.
Claire Baker, Scottish Labour transport spokeswoman, said: “The SNP Government must listen to this stark warning and set out a real plan to secure a sustainable future for this yard.
“The skilled and dedicated workers at Ferguson’s Marine have been failed time and time again by SNP chaos and incompetence.
“The SNP must work with Ferguson’s to attract work, ensure these vital jobs are safe and support Scotland’s iconic shipbuilding industry.”
Willie Rennie, Scottish Lib Dems economy spokesman, said: “It has not been a year to inspire confidence in the running of Ferguson Marine.
“A Chief Executive sacked with the collaboration of government ministers for telling home truths they didn’t want to hear, an order book looking painfully thin and now fresh concerns over poor governance and decision-making.
“In 2025, ministers and bosses need to help Ferguson Marine to turn a corner, with effective leadership and a programme of work to secure the yard’s future.
“Islanders have had to put up with endless delays and taxpayers have been expected to foot a bill for hundreds of millions of pounds, yet still no one in government carries the can.
“This should be a case study for future minsters in how not to do things.”
Kate Forbes, the Deputy First Minister, said: “The Scottish Government is committed to helping Ferguson Marine reach a position where it can competitively bid for a range of projects and build a sustainable future.
“Officials have been working with the board to explore options to improve productivity and, as previously set out, we are willing to invest up to £14.2 million over two years, subject to due diligence and provided commercial standards are met.
“The draft 2025/26 Scottish Budget allocates £46 million to Ferguson Marine for the completion of Glen Rosa and to cover the yard’s planned capital investment, subject to parliamentary approval.”
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