Ferguson Marine: Public inquiry call as costs of lifeline ferries soar again - to a quarter of a billion pounds

Audit Scotland criticised a “multitude of failings” in the delivery Glen Sannox and Hull 802 which are languishing in the state-controlled Ferguson Marine yard were now nearly five years late and will cost the public two-and-a-half times the contract costs - £240m.

After the latest costs uplift and delay emerged, Scottish Conservatives' shadow transport secretary Graham Simpson said the SNP should be "ashamed" by the auditors analysis  and called for a public inquiry.

Scottish Labour shadow transport secretary Neil Bibby challenged Ms Forbes to resign if the latest rescheduling is not stuck to.

The state-owned Ferguson Marine (Port Glasgow) management have revealed there will be a further delay of eight months on Glen Sannox and a six month delay in Hull 802, which were due to serve Arran.

READ MORE: Ferguson Marine: Two faulty £240m ferries may never set sail with defects and costs rising under SNP control

The extra costs will take the current price of the vessels to £250m.

Of the extra costs just £825,000 related to the cabling issue with the rest blamed on overhead labour and material costs associated with the new schedule.

It means that instead of going into service this year, Glen Sannox will now be five years late and will not see service till between March and May 2023 at the earliest, while Hull 802 is not due to set sail till between October and December 2023.

She said: "I won't rehearse it my frustration and I know the Chamber's frustration with this updated timetable.

"There is an urgency and a necessity in delivering these vessels as quickly as possible.

"I expect the yard as a priority to complete those vessels successfully and at the fastest, most achievable pace. "I expect the yard to turn around its operations so it's competitive, productive and efficient. And I expect the yard to win and secure a further pipeline of work on the basis of its operations."

She added: "It also goes without saying that progress has not been as fast as we would have liked, largely due to ongoing legacy issues."

She said Covid had "undoubtedly" slowed the turnaround efforts of the year which had twice to shut down and had to work at a reduced capacity for many months.

The Audit Scotland report revealed that as recently as January there were still 175 technical, safety or quality issues to be resolved - including some that could prevent the issuing of a passenger safety certificate by regulators.

it also found that the contract for the ferries was approved by ministers without normal financial safeguards.

The Audit Scotland investigation was unable to establish why the £97m order was given to Ferguson shipyard without such guarantees.

Ms Forbes said that the auditors' report "reflects fairly on the complex issues which have mired the history of the building of the ferries and underpin many of the legacy issues which Ferguson's are dealing with today. "

She concluded: "There are no ifs and not buts, those vessels must be completed and they must be completed as quickly and as effectively as possible.

"The board and leadership of Ferguson Marine know where I stand on this issue. They expect to be held to account for delivery of these critical ferries in line with the new schedule. And until those vessels are serving the communities for which they were built. We will not let up in our drive and determination to get them finished."

David Tydeman, Ferguson Marine's chief executive said: "Whilst this delay to the overall programme is regrettable and there remains risks to be managed, the revised plan is focused on delivering both ships robustly fit for purpose."

Ferguson Marine had told Audit Scotland that if the multiple issues were not resolved "there is a risk" that Caledonian Maritime Assets Ltd (CMAL), the taxpayer-funded firm which owns and procures ferries "will not accept the completed vessels".

The two dual-fuel ferries, meant to serve the Clyde and Hebrides but has been plagued with setbacks since they were first ordered in 2015.

State-owned ferry operator CalMac is now having to handle an ageing ferry fleet.

Mr Bibby said in response to Ms Forbes that the islanders had "heard this all before" and accused the cabinet secretary of "passing the buck".

"The  cabinet secretary says she is holding the new board accountable. I'm sorry it's the cabinet secretary who is accountable.

"We've heard again the tough talk of no ifs and no buts, and these ferries  must be delivered as soon as possible.  

"The reality is the only chance islanders are going to see a new ferry this year is to take a holiday to Marmaris. Is she going to stake her reputation on this, or is this just more words.

"Can Kate Forbest confirm that if these ferries are not ready by May and December 2023, then she will resign.

"If you're not confident enough, cabinet secretary, to stake your position on this, why  should any islanders have any confidence in what you're saying now."

Highlands and Islands MSP Edward Mountain, the former convenor of the rural economy and connectivity committee whose probe into the construction of two overdue and over-budget ferries for CalMac branded the management process a "catastrophic failure" said that because of  Scottish Government failings, Scotland needs to build two-and-a-half ferries every year for 10 years to get back on track.

“Seven years ago a contract was awarded to build two ferries and today neither of which are close to completion.

“Seven years is the time it took to build an aircraft carrier and yet this Scottish Government has nothing to show for all the hundreds of millions of pounds we have spent, what a farce."