News

Tycoon Jim McColl ready to resume Ferguson shipyard involvement

Tycoon Jim McColl ready to resume Ferguson shipyard involvement
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 private buyer will take over the business.

The Inverclyde shipyard ran into trouble after failing to complete a £97m order to build two ferries for Scottish government owned CalMac.

Jim McColl has blamed for the spiralling costs of the unfinished order.

Image caption Jim McColl said he would be happy to talk with the Scottish government about a joint arrangement

He said that since the yard had been taken over by the Scottish government, he had been part of a joint venture - along with a major overseas shipbuilder - considering a bid to take the yard out of administration.

However, that plan was abandoned last week due to a lack of time to prepare the bid. It is understood there are two other private bidders still interested.

A statement about the bids has been expected from Deloitte, the administrator, for some days.

Mr McColl said he would be "happy to talk to the Scottish government about some sort of joint arrangement".

He said this would involve the Scottish government setting up a separate company to complete the two CalMac ferries.

Mr McColl, who controls the investment company Clyde Blowers, said this would allow the firm to focus on other contracts that could otherwise be lost to the yard.

Image caption The contract to build two ferries for CalMac remains unfinished

The billionaire suggested these could include a project with several industrial partners and St Andrews University to develop hydrogen-powered ferries.

Ferguson shipyard was part of the winning partnership in bidding to win the £1.25bn contract to build five Type 31 frigates for the Royal Navy.

Babcock was lead partner and named as the sole preferred bidder .

Mr McColl said he wanted to ensure the Inverclyde yard was included in the military order, securing up to 10 years worth of work to build the bow sections.

Such a business model - splitting the CalMac ferries from other marine engineering work - was proposed by Mr McColl and Clyde Blowers before its subsidiary was taken over by administrators.

At the time, the Scottish government said it would be illegal to bail it out, or to meet the rapidly increasing cost of finishing the two ferries, on what had been a fixed price contract.

However, Mr McColl said that would not apply to a company buying assets out of administration, and Finance Secretary Derek Mackay has said he would welcome private sector investment in the yard.

Mr Mackay has set out his determination to ensure the ferries - which are due to operate in Arran and Skye are completed - and says he will outline the timetable and cost of doing so by the end of next month.

Mr McColl also denied reports earlier this week, based on Deloitte s assessment of Ferguson s finance, that Clyde Blowers had left some of the yard s 300 workers unpaid.

He said staff pay was brought forward when it was clear the company was heading into administration, and that holiday pay and pensions would be honoured through the administration process.

In response to opposition MSP calls for an inquiry into the funding of Ferguson shipyard and the CalMac ferries, Mr McColl said he was eager to contribute.
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
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
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...
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...
Top Stories
The towering seven storey superstructure that will sit atop Canadas newest naval supply ship weighs 2, 200 tonnes and is outfitted with cabins, provision stores and all of the vessels public areas....