The Scottish Government’s refusal to accept responsibility for the “catastrophic failure” that is the islands ferry debacle is “shocking”, say opposition parties.
Disgraced former Finance Secretary Derek Mackay launched an inquiry into the ferry fiasco almost two years ago.
Orders for two ships, built in Port Glasgow and set to sail for communities on the Clyde and the Hebrides, were placed by CMAL (Caledonian Maritime Assets Ltd) with Ferguson Marine Engineering Ltd (FMEL) in October 2015.
The boats are still to be delivered, with the cost of completion rising from an initial fixed price of £97 million to between £192.8m and £196.8m.
Each ferry, named 801 and 802, is not expected to launch for service until 2022 and 2023, respectively — as much as 49 and 55 months late, respectively.
A report by the Rural Economy and Connectivity Committee stated there had been a “catastrophic failure” in the procurement process, but islands minister Paul Wheelhouse subsequently rejected the findings.
MSPs debated the issue at Holyrood on Tuesday.
Communities failed
North East Scottish Conservative MSP Peter Chapman, said Highland and Island communities are being left behind as a result of the “debacle”
He said: “Four years after the contract was awarded 95% of the sign offs on the basic design of the vessels were still not completed.
“It is a matter of grave concern that CMAL did not intervene to halt the process as soon as it became aware that Ferguson Marine was proceeding to build at risk without having secured sign off of the basic design.
“These are the wrong ships given to the wrong yard to build and the outcome is island communities across the west coast are suffering a poor and unreliable service.
“Their promised new ships are nowhere to be seen and the whole Calmac service is stretched to breaking point.
“There is no spare ferry anywhere in the system and if there is a breakdown, or a ship needs maintenance, sailings must be cut and islanders’ essential journeys abandoned.
“This makes running a business on our islands, which can already be expensive and difficult, almost impossible.
“This is a debacle of the worst kind. It has cost taxpayers hundreds of millions of pounds, has made life for our island communities more difficult and far from securing a reliable future for the Ferguson Marine yard, I believe they will find it difficult to secure new work under the dead hand of this incompetent government and with the abysmal legacy of these ships.
“The failure of this yard could well be the final disaster of this whole sorry saga. A sad end for a committed skilled and reliable workforce who deserve so much more.”
‘Disdainful response’
The committee convener, Scottish Conservative MSP Ed Mountain, added: “The Scottish Government’s disdainful response to the committee’s critical conclusion is, frankly, surprising.
“Contrary to the minister’s assertion that the committee did not highlight the poor performance by the shipyard’s former management as a contributory factor to the problems of this project – we did.
“It is clear, however, that the procurement process that the minister tries to defend was not fit for purpose.”
Conclusion does not ‘reflect evidence’
Mr Wheelhouse said: “As set out in my response, there are some conclusions in the report with which we do not agree, and some instances where we believe the conclusion or recommendation made does not reflect the breadth of evidence presented to the inquiry.
“However – and I stress this for the convener’s benefit and for other members of the committee – we do recognise that, in relation to the two ferries and the delay in their delivery, the outcome has been particularly impactful on communities awaiting the delivery of ferries that have yet to be completed and clearly the cost outturn and delays are far from what was anticipated or desired at the point of contract award to FMEL.
“We accept that lessons have to be learned and I want to assure members they are being learned.”
He added: “However, I would again reiterate our view that contractor failure played the primary role in these difficulties and we are disappointed this was not more fully reflected in the final report, although I accept the committee has to take its own view but the government is also entitled to take a view as well.”
SNP ‘fail’ to take on responsibility
Scottish Labour transport spokesperson Colin Smyth said: “The committee’s unanimous report described this ferry fiasco as a catastrophic failure, yet the SNP Government have failed to take any responsibility.
“They have sought to brush many of the conclusions of this damning report under the carpet and pass the buck entirely to the Ferguson’s yard.
“It raises the questions: if all the failings were on the part of Ferguson’s, why was this contract awarded in this manner in the first place, and does that require further investigation including, if necessary, a criminal investigation?
“There was insufficient due diligence carried out by CMAL, and it’s clear they are simply not fit for purpose. There is a need for an urgent overhaul of the cluttered procurement processes for new ferries, including the scrapping of CMAL.
“Audit Scotland should also undertake a forensic inquiry into the financial management of the contract by CMAL and the role of the Scottish Government in the process.
“Scottish Labour repeatedly called for the First Minister and Derek Mackay to appear before committee to explain their decisions. Their failure to do so leaves unanswered questions over why Ministers failed to intervene earlier when they knew this contract was failing.
“As a result of the lack of action, taxpayers have been left with a bill double the size of the original contract and our island communities still don’t have the lifeline ferries they desperately need.
“We need a change of direction from the Scottish Government that delivers for our islands communities, taxpayers and Scotland’s shipyard workers, who have been so badly let down.”