Douglas Ross has today condemned the First Minister over leaked documents which indicate that Ferguson Marine was given preferential treatment during the bidding process for the contract to build Hulls 801 and 802.
The Scottish Conservative leader said that the evidence, which was uncovered by investigative journalists at the BBC, looked like ‘corporate fraud’ and had ‘a stench of political corruption’.
Douglas Ross questioned Nicola Sturgeon over why the shipyard was given a confidential meeting with CMAL assessors, a 424-page document of detailed design specifications, and the chance to change its bid after the deadline – in contrast to all other bidders.
However, the First Minister failed to offer an explanation for this preferential treatment – or for the Scottish Government and its agencies failing to provide Audit Scotland with this evidence during their investigation earlier this year.
Questioned over the £84m increase in costs for the two ferries that came to light in a letter from the shipyard yesterday, the First Minister said the additional costs would be ‘scrutinised’.
Douglas Ross said that Nicola Sturgeon was ‘incredibly’ effectively admitting that the taxpayer would have no option but to swallow an additional £84m overspend, as well as a further delay to the vessels’ completion.
Scottish Conservative Leader Douglas Ross said: “This week, it emerged that Ferguson shipyard had received preferential treatment from this government and its agencies in its bid to build two ferries.
“Ferguson were the only bidder given special access to a 424-page cheat sheet on how to build the ferries – a cheat sheet they literally copied page after page from.
“They received a confidential in-person meeting with the people involved in buying the ferries, and they were the only bidder allowed to resubmit with a new design and change their price after the deadline.
“The only conclusion that any reasonable person could draw is the deal was rigged. But we didn’t find out any of that until this leaked dossier was uncovered by investigative journalists this week.
“Instead, we got secrecy. The public were kept in the dark. It’s clear that there has been a cover up by the government and its agencies.
“The First Minister thinks this is no big deal, but this does matter – because the price and the delays keep spiralling further.
“It emerged yesterday in a letter from Ferguson that the delays are continuing – Hull 802 is now going to be six years late. And, according to Fergusons, their total project budget has increased by £84million on previous estimates.
“This scandal looks like corporate fraud and has a stench of political corruption.
“The First Minister said in March she has 'ultimate responsibility' for this deal. She used to pose for pictures at the yard and shouted from the rooftops that it was one of her proudest achievements.
“Nicola Sturgeon was happy to take all the praise – but now she refuses to share any of the blame.”
Notes:
Ferguson Marine CEO, David Tydeman, informed the Scottish Parliament’s Net Zero, Energy and Transport Committee of further delays to the delivery of Hulls 801 & 802. In a letter to Committee Convener, Edward Mountain MSP, Ferguson Marine informed parliament of a ‘worst case slippage’ of one to two months in the final handover of Hull 801 (Glen Sannox) and have moved the handover date of Hull 802 from ‘Q4 ’23 into Q1 ‘24’, (Letter to Net Zero, Energy and Transport committee, 28 September 2022, link).
Ferguson Marine has confirmed an increase in total project costs, including contingencies and excluding previous milestone payments, of £84million on previous estimates from March 2022. (Letter to Net Zero, Energy and Transport committee, 28 September 2022, link; Confirmatory email from Ferguson Marine available on request.)
Evidence uncovered by BBC Disclosure indicates Ferguson Marine received preferential treatment when bidding for the two CMAL ferries currently under construction at the shipyard. Including a 424-page document from a design consultant setting out CalMac's technical requirements, while other bidders had to rely on a more limited 125-page specification; a confidential in-person meeting with CMAL assessors; and the chance to significantly change its design halfway through the tender (BBC, 28 September 2022, link).