Shipyard’s promised investment is ‘conditional’
October 6, 2025
Shipyard’s promised investment is ‘conditional’ – Forbes
Getty ImagesOnly a small fraction of the £14.2m investment promised 16 months ago to help the nationalised Ferguson shipyard win new orders has so far been handed over, the Scottish government has confirmed.
Deputy First Minister Kate Forbes said 11 funding requests had been approved, totalling £570,0000 since she first announced the investment in June last year.
But in a letter to MSPs she said the remainder of the modernisation money was conditional on a “robust business case” being made by the Ferguson board.
GMB, the main union representing Ferguson workers, said the firm was being placed in a “Catch 22” situation.
It called on the government to give it a new ship order which would then unlock the investment funding.
The Port Glasgow shipyard, which employs about 300 workers and apprentices, is currently working to complete MV Glen Rosa, the second of two gas-powered CalMac ferries that have been beset by design problems and delays.
While it has secured some subcontracting work for BAE Systems, it has no ship orders after the ferry is completed in the second quarter of next year.
Holyrood’s public audit committee wrote to Kate Forbes last month questioning the government’s commitment to the shipyard after it emerged that procurement orders for major equipment items had been withdrawn.
In her reply, Forbes suggested that the firm had simply issued these notices as a means of testing the market and gaining information about potential delivery times.
It is understood the equipment – a semi-automated panel line and profiling and cutting machines – was recommended by consultants First Marine International which was tasked with reviewing the shipyard’s productivity three years ago.
In her letter, Forbes said all 11 requests for capital funding from the shipyard so far had been approved, and the money had been spent on building repairs and health and safety as well as some equipment modernisation.
But she added: “Access to the remainder of the modernisation funding will be conditional on a clear, board-approved business case, evidenced through the revised business plan”.
Earlier this year Ferguson Marine missed out on an order for seven small CalMac vessels – widely seen as well-suited to the yard’s size and capabilities – which were a key element of the board’s previous five-year business plan.
While the Ferguson bid fared well in the technical assessment, government-owned ferries procurement body CMAL awarded the contract to a Polish firm which was able to undercut the Scottish shipyard on price.
‘Failure to invest’
The GMB has called for the next CalMac vessel order, a replacement for MV Lord of the Isles, to be directly awarded to Ferguson’s to help kickstart its recovery.
Ministers previously ruled out a direct award for the seven small CalMac vessels, saying it risked a legal challenge, but First Minister John Swinney says his government is “actively considering” the latest request.
Louise Gilmour, GMB Scotland secretary, called on Transport Secretary Fiona Hyslop and government-owned ferries procurement body CMAL to provide a pipeline of work for the state-owned shipyard.
She said: “Ministers must stop delivering excuses for a failure to invest in Ferguson’s future and start awarding contracts.
“How can managers detail the investment needed to deliver future contracts when ministers and CMAL refuse to award those contracts?
“It is an absurd Catch 22 situation and cannot continue.”
BBC Scotland News understands that even if a new ferry order is directly awarded, design work means it will be at least a year before the yard can begin cutting steel.
Ms Gilmour added: “It is beyond time for the transport secretary and CMAL to show they have a plan for Ferguson’s along with the vision, ambition and investment to deliver it.”
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