News

New board to oversee completion of Ferguson ferries

New board to oversee completion of Ferguson ferries
Business
The Scottish government has set up a board to deal with the completion of two ferries being built at the now publicly-owned Ferguson shipyard.

after bosses at the yard served notice of intent to put the business into administration.

This would have left 350 jobs at risk.

Finance Secretary Derek Mackay said the new programme review board would try to secure the cheapest possible delivery of the CalMac ferries.

"We have always been clear that we want to complete the vessels, secure jobs and give the yard a future," he said.

"I have formed a programme review board to establish a new delivery programme to ensure the completion of the CMAL [Caledonian Maritime Assets Ltd] ferry contracts at the lowest possible cost to the taxpayer.

"While work continues at the yard, we are working to put in place a management team which will refocus all efforts on completing this vital government contract."

He added: "We are working closely with staff and the trades unions - as well as suppliers and customers - to achieve the best possible outcome for the yard."

A turnaround director had already been appointed to work to stabilise the business and support the recruitment of an incoming management team, including a chief executive officer.

The Scottish government will buy the yard if no private buyer is found within four weeks.

Image caption Finance Secretary Derek Mackay visited the Port Glasgow yard on Friday

Ferguson was involved in a dispute with the Scottish government over the construction of the two CalMac ferries.

The yard was owned by industrialist Jim McColl, who could not persuade ministers to pay more than the £97m contract price for the disputed ferries.

The agreement also means work on the CalMac ferries, and other contracts, can continue while efforts to find a commercial buyer get under way.
Read more on bbc.com
News Topics :
Similar Articles :
Business
Ministers will now operate the yard under a management agreement with administrators, which will see the Scottish government buy the facility if no private buyer is found within four weeks....
Business
Mr McColl said he was happy to talk to ministers about some sort of joint arrangement for the yard, which currently owes taxpayers about £50m . Ministers are hoping a...
Business
Finance Secretary Derek Mackay said taking the Port Glasgow site, which is due to enter administration , into public ownership was an option. The site currently employs about 350 staff...
Business
In the autumn, administrators from Deloitte concluded public ownership was in the best interests of the creditors, despite receiving three commercial bids. The Port Glasgow yard will now be known...
Business
The 54 turbines for the Neart na Gaoithe NnG site are being assembled at Port of Dundee, while engineering firm BiFab will build eight of the foundation jackets at its...