THE main union representing staff at Scotland's crisis-hit nationalised shipyard firm is urging ministers to sign off on ploughing further millions in investment into the shipyard saying it will underpin a "secure and successful future" but has warned against privatisation.
It emerged that a multi-million-pound tranche of capital expenditure has been requested by Ferguson Marine as part of a plan to make it more competitive and is being evaluated by the Scottish Government.
The move comes on top of the decision to inject a further £72m into the Ferguson Marine (Port Glasgow) shipyard this financial year amidst a ferry-building fiasco.
Now GMB Scotland has said workers believe that millions of pounds of capital expenditure needed to secure future contracts for the yard in Port Glasgow was "justified investment" for a skilled and committed workforce that it said has been "badly failed and unfairly scapegoated for two late and overbudget ferries".
The Ferguson Marine board admitted there was a "significant doubt" over its ability to continue as a going concern due to doubts over future funding in its last 2021/22 financial statement.
And Auditor General Stephen Boyle (below) said at the end of April that there remains doubts over the long term future of the shipyard firm because of a lack of a business plan.
Senior union organiser Gary Cook said the priority is to secure future work and that demands investment in the yard’s infrastructure.
He said: “Ferguson Marine could and should be a jewel in the crown of Scottish shipbuilding but, in recent years, the workers there have been repeatedly and unfairly blamed for grave mistakes made by others.
READ MORE: Auditor concerns over shake-up of bonus culture at Ferguson Marine
“The workforce’s expertise and commitment have been repeatedly recognised by ministers and when these ferries are finished, there is a real opportunity to secure this yard’s future for generations to come.
“There is work out there, opportunities to be taken and contracts to be won.
“It makes no sense to us for ministers to make that investment in Ferguson Marine, secure its future, then hand it back to private owners.
“That argument can wait. The priority is to give the yard the investment it needs and allow it to secure new contracts."
It comes as Ferguson Marine chief executive David Tydeman has indicated that it is hoping for a significant order for the building of ships for the UK and Scottish wind farm market. They say they are in discussions and are working on preliminary designs for the ships and that it could create ten to 15 years of work.
He says it comes from a "commitment" from two major operators in the wind farm market to build ships in Scotland. But he indicated that it was a longer term project with ships that may not be built till 2027 "which doesn't fill the immediate gap".
But he has said it is a "very significant opportunity for the future".
The Ferguson Marine board admitted there was a "significant doubt" over its ability to continue as a going concern due to doubts over future funding in its last 2021/22 financial statement.
And Scotland's public spending auditors said at the end of April that there remains doubts over the long term future of the shipyard firm because of a lack of a business plan.
Ministers were accused of presiding over an “outrageous mismanagement of public funds” after pressing ahead with the second ferry at the Ferguson shipyard, known only as Hull 802, despite learning it would be cheaper to scrap the vessel and tender for a new one.
In March it was confirmed that due to "persistent design gaps and build errors" the first of the two Ferguson Marine vessels, Glen Sannox is scheduled for autumn 2023 rather than the end of May 2023 with a "contract backstop" of no later than the end of December 2023.
Hull 802 is now not expected to set sail till the autumn of 2024 having already been delayed to the end of March 2024. The contract backstop was stated as being at the end of December 2024.
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They were originally due to set sail in mid-2018 with one initially to serve Arran and the other to serve the Skye triangle routes to North Uist and Harris, but they are well over five years late. It is suggested the costs of delivery may quadruple compared to the original £97m contract costs.
The two ferries for CalMac were ordered in 2015 when Ferguson Marine was owned by Jim McColl, a then pro-independence businessman who rescued the Inverclyde yard from administration a year earlier.
READ MORE: CalMac ferry remains sidelined months after rust and engine issues
When the build ran into trouble, the shipyard firm fell into administration and was nationalised with Mr McColl and the government-owned ferry owning and procurement agency CMAL blaming each other for the fiasco.
The Scottish Government's accountable officer for the yard, the general economy director Gregor Irwin said a secret report commissioned by the Scottish Government from consultancy firm First Marine International (FMI) is punctuating ministers' decision-making on how it deals with Ferguson Marine.
He indicated that privatisation would come after the shipyard firm was on a sure footing.
He has confirmed that investment from the Scottish Government was needed for longer term yard plans which are subject to a new wave of due diligence.
External advisors have been brought in to help with the process.
The financial collapse of Mr McColl's Ferguson Marine which runs the last remaining shipyard on the lower Clyde, in August 2019, came amid soaring costs and delays to the construction of the two ferries.
It came five years after tycoon Jim McColl first rescued the yard when it went bust.
Audit Scotland has continued to raise questions about the yard's future despite attempts by new management to map out a long-term plan beyond the delivery of the two ferries.
Nationalised Ferguson Marine has previously responded to concerns over its status as a going concern by insisting there is a strong future for the business, despite its last annual financial review for 2021/22 admitting there was "significant doubt" over its ability to continue as a going concern.
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".
The Scottish Government in response to concerns said its priorities were to complete the ferries and secure the yard's future, while the deputy first minister said that ministers remained "committed to do all that we can" to help achieve a prosperous future for the yard.
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