• STV
  • MySTV

Call for inquiry over Ferguson shipyard administration plan

A Ferguson Marine Engineering chief said the move had been made ‘with great regret'.

Ferguson: Around 350 jobs are at risk.
Ferguson: Around 350 jobs are at risk. © HEMEDIA / SWNS Group

Calls have been made for a parliamentary inquiry after Ferguson shipyard bosses served notice of their intent to put the yard into administration.

Around 350 jobs are at risk at the yard by the River Clyde in Port Glasgow which was previously in administration five years ago until it was bought by Clyde Blowers Capital (CBC).

Ferguson Marine Engineering chief executive Gerry Marshall said the move had been made "with great regret and disappointment".

He added: "This decision has not been taken lightly, but the directors do not consider there to be any other options in the current circumstances.

"However, the directors will continue to support the shareholder and the Scottish Government to realise a positive outcome for the business and its employees."

Scottish Conservative transport spokesman Jamie Greene has called for a full parliamentary inquiry.

He said: "The news of this administration will no doubt be deeply concerning to the many workers and families connected with the yard.

"The immediate priority must be to act to protect jobs, secure the future of the yard and see the conclusion of the CalMac ferry building.

"The blame for this fiasco lies solely at the feet of the SNP government who have recklessly mismanaged this contract, wasted hundreds of millions of pounds of public money and put the entire marine industry at risk.

"SNP ministers must be held to account over this entire fiasco.

"It is impossible to chart a way forward for the yard until we get to the bottom of both why things have gone so financially awry and what can now be done differently to secure a longer term future for Scotland's shipbuilding industry."

Ferguson Marine won the £97m fixed price contract to build the MV Glenn Sannox and a second Hull 802 boat for CalMac, which is due to be deployed in the Outer Hebrides.

The MV Glenn Sannox ferry, which CalMac plans to use to provide services to Arran, had been due to come into service in summer 2018, but transport secretary Michael Matheson said in May that this date could be pushed back to 2020.

The shipyard's parent company, owned by Jim McColl, also criticised Caledonian Maritime Assets Ltd (CMAL) and the Scottish Government after the move.

CBC said in a statement: "We understand that this decision has not been taken lightly and is fundamentally due to CMAL and the Scottish Government's inability to find a resolution to the additional costs encountered during the build of the two prototype LNG dual-fuelled ferries.

"As shareholder we have provided a number of viable proposals to avoid the process of administration and save the jobs of 350 employees.

"However CMAL and the Scottish Government have consistently refused to participate in productive discussions, leaving the directors of Ferguson Marine Engineering Ltd with no other options given the circumstances they are faced with."

A Scottish Government spokeswoman said: "Our priority remains to ensure the completion of the vessels under construction, secure jobs for the workforce and protect the future of shipbuilding at the site.

"We have been working to secure a future for the shipyard for two years, and it is disappointing that we have not been able to reach a commercial solution with CBC that would have prevented administrators becoming involved.

"We appreciate that this will be a concerning time for the workforce, their families and the local community, and we would like to reassure them that we are committed to maintaining the jobs on the site and building a secure future for the yard and its workforce.

"We have been working closely with trade union representatives throughout this process, and we will continue to do so in the coming days and weeks."

Greenock and Inverclyde MSP Stuart McMillan called the decision "one that nobody wanted to see".

He added: "It will be distressing for all the workforce, their families and the whole community. I support the workforce and the yard and I want an outcome that keeps both working and delivering for the community.

"There is a belief in the community that the yard has a future and it's important that dialogue to find a solution continues.

"I know the workforce are highly skilled and highly motivated and they can deliver world class ships. Our community is on their side and we want to continue to build ships."

A CMAL spokeswoman said: "We are keen that the future of the shipyard and its workforce is secured, and a solution is found that will allow the yard to deliver the two dual fuel vessels, which will serve Scotland's island communities."

Download: The STV News app is Scotland's favourite and is available for iPhone from the App store and for Android from Google Play. Download it today and continue to enjoy STV News wherever you are.

One account. All of STV.

This field is required. That doesn't look like a valid e-mail format, please check. That e-mail's already in our system. Please try again.
ShowHide
Forgot password?
This field is required. This must be at least 6 characters long. Did you enter your details correctly?
If you've forgotten your details then use the 'Forgot password?' link.
Need to reset your password?

We'll send a link to reset your password to

We've sent you details on how to reset your password

Please check your email and follow the instructions.

Forgotten your email address?

Have you forgotten the email address that you previously joined with? Don't worry, by emailing enquiries@stv.tv we can help.

One account. All of STV.

This field is required. Please enter at least 2 characters
This field is required. Please enter at least 2 characters
This must be at least 6 characters long.
ShowHide
This field is required. This must be at least 6 characters long.
You must be over 16 to join STV.
This field is required. This doesn't appear to be a valid date
We need this to check that you live in an STV region.
This field is required. This doesn't appear to be a valid postcode
Would you like us to email you about our great shows and services from time to time?
We'll only send emails we think you'll like (see example) based on information you have supplied and shows you have watched on STV Player. For details on emails and advertising, see our STV & You page.
Would you like to receive emails from the Scottish Children's Lottery about draws, instant games and competitions?
We support the Scottish Children's Lottery (SCL), which is managed by our colleagues at STV ELM Ltd. You can find out more about the SCL on its website, including its Privacy Policy.

By continuing you agree to our Terms of Use, and understand our Privacy and Cookie Policies.

Upload Profile Picture

Please make sure your image is under 2mb in size and a valid JPG, PNG or GIF.

Are you sure?

Unfortunately, you'll be unable to access our premium content. We’ll be sorry to see you go, but if you change your mind you can rejoin us at any time.

Please verify your STV account

Please verify your STV account using the email we sent you. If you have lost the email, we can send you another one, just click the button below.

Thanks

We've sent you a new verification email.
Please check your email and follow the instructions to verify your account.

Welcome to STV
Thanks for joining us.

Oops!

Sorry, you must be at least 12 years old to place a vote for your Real Hero.

Please review our Voting Terms of Use for more information.

Oops!

Sorry! It seems that you are using a browser that is incompatible with our voting service.

To register your vote please copy the below URL in to your regular mobile browser. We recommend Google Chrome, or Safari.

http://shows.stv.tv/real-heroes/voting

Oops!

Sorry, you seem to have already voted in this category.

Thanks for voting

Now share your vote with friends on your social network

Share on twitter Share on facebook

Cast your vote

Please register or sign in to continue.

Cast your vote

This field is required. This doesn't appear to be a valid date

Cast your vote

Please fill out this form to cast your vote. As you are under 16 years old you will not create an STV account. Why do we need these details?

This field is required. Please enter at least 2 characters
This field is required. Please enter at least 2 characters
This field is required. That doesn't look like a valid e-mail format, please check.
Location This field is required.
Parental Consent This field is required.

That's you. All that's left is to click the 'Submit Vote' button below. By doing so, you confirm that you and your parent or guardian have read and accept our Voting Terms of Use, Privacy Policy and Cookie policy, and that the details you have entered are correct. We'll look after them as carefully as if they were our own.