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New doubts have been raised about the future of the beleaguered nationalised Ferguson Marine as auditors blasted the shipyard for a lack of business plan.
Audit Scotland has said that questions remain about how the Port Glasgow shipyard will proceed in the future following the construction of the Glen Sannox and Hull 802.
These two CalMac ships are vastly over-budget and also more than five years late, with the building being disrupted by numerous issues including Ferguson Marine going bust.
READ MORE: ‘Unacceptable’ bonus payments totalling £87,000 to be paid out to ferry bosses
The Auditor General Stephen Boyle sowed doubt about the future of the shipyard which has received hundreds of millions of taxpayer cash to keep it afloat.
He said: “There are two significant vessels to deliver. But there are doubts about the long-term viability until it is clear there is a plan in place… that plan is awaited.”
A revised performance framework for Ferguson Marine’s senior managers and chief executive was still awaiting approval and consideration by the Scottish Government.
The yard was rescued from administration in 2019 but has not been able to complete the construction of two lifeline ferries, with further delays announced in March pushing the delivery date for the two boats to the end of 2023 and 2024, five and six years delayed.
Ferguson Marine is still expected to be eventually sold by the government, but has needed cash payments to keep it afloat, with taxpayers cash totalling more than £450 being plunged into it.
Asked if the yard has a viable future, Mr Boyle said: “I am not able to say yes it does, or it doesn’t.” He added: “What we are looking at is beyond the delivery of Glen Sannox and Hull 802.
“Is there a long term order book? Is there progress in terms of a relationship with BAE Systems? But in order to transition effectively to a long-term successful shipyard, there has to be a clear business plan supported by a viable workforce. And that’s what’s awaited.”
He added that Ferguson Marine reported that there were “limited shipbuilding skills available in Scotland and that, to date, it has been unable to compete effectively with the private sector for skilled staff.”
And he warned that this has “implications for future costs and [Ferguson Marine’s] ability to secure and deliver contracts”. He said: “That is a very clear risk to the future viability. There are many factors to that, the ability to compete with the private sector, which feels unusual in the relatively short time that it’s been a public entity.
“These are the factors that the yard’s business plan will have to make assumptions [over]. Its workforce plan will have to be part of that, how it secures and retains the future workforce.
“There is no shortage of labour in the longer term, as supported by adequate training, apprenticeships and so forth, that could provide a future for the yard. It is the transitioning from where they are now into a longer term workforce that will be the key task for the management of the yard and the Scottish Government.”
We previously told how Ferguson Marine warned about “significant doubt” over its ability to continue as a company due to concerns over future funding.
The board of directors went on to say that they are working with the Scottish Government to “continue to develop our strategy and processes to deliver a sustainable business model which will secure the long-term position of the company”.
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