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Daily Record
Daily Record
National
David Clegg

Last commercial River Clyde shipyard could be nationalised due to long-running contract wrangle

The last civilian shipyard on the Clyde could be nationalised following a long-running dispute over ferry contracts, it emerged yesterday.

The Scottish Government is poised to take over Ferguson Marine Engineering amid a multi-million pound row over the building of two ferries for Caledonian MacBrayne.

Government officials have been in talks for months with the yard’s billionaire owner, Jim McColl, after the cost soared to nearly double the original £97million contract price.

McColl has previously accused CalMac of failing to seriously discuss the yard’s demand for more than £61million extra. 

The two hybrid ships were commissioned in 2015 but construction has stalled repeatedly over design issues.

Alex Salmond visits the shipyard in 2014 (Getty Images)

One ferry, Glen Sannox, was completed in late 2017 and was expected to start on the Arran route last year.

However, it remains moored beside the yard while the other work continues.

The second ferry, earmarked for the Skye and Harris routes, may not enter service until 2021.

Former first minister Alex Salmond personally helped negotiate the deal that saw McColl rescue the Port Glasgow yard in 2014. He vowed to breathe new life into the only commercial yard left on the lower Clyde, now employing 350 workers.

The Scottish Government has loaned Ferguson £45million in the past five years, sparking controversy at Holyrood.

Local SNP MSP Stuart McMillan welcomed the news that the Scottish Government was “preparing for all eventualities” and “appears to be so focused on a future for the yard and the workforce”.

Scottish Conservative shadow finance secretary Murdo Fraser called Salmond’s deal to save the yard “a headline-grabbing move” before the 2014 independence referendum, and said Scottish taxpayers were now paying the price for it.

First Minister Nicola Sturgeon with shipyard owner Jim McColl (Wattie Cheung Photography)

He said nationalisation was not the answer, but added: “It appears the SNP’s desire to control everything in Scotland, on the taxpayer’s expense, trumps common sense.”

Scottish Labour MSP Rhoda Grant added: “The first priority is protecting jobs at Fergusons and Scottish Labour will support all efforts to ensure the future of the shipyard is protected.

“But serious questions must be asked over the SNP’s role in awarding these ferry contracts in the first instance. ”

A spokesman for the Scottish Government said: “The Scottish Government is focussed on supporting the yard completing the vessels and ensuring the future of shipbuilding at the site.

“We are working with partners to deliver that outcome.”

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