New ferries hit by more costs and delays

Two new CalMac ferries being built at the Scottish Government-owned shipyard Ferguson Marine in Port Glasgow are now five years overdue and three times over budget - and the final cost and delivery dates are still uncertain.

 

Deputy First Minister John Swinney, in a statement to MSPs on March 16, announced a further delay for the Glen Sannox from May to this autumn, if not the end of 2023.

 

Glen Sannox’s sister vessel, the as-yet unnamed Hull 802, will also be delayed, from March 2024 to “late summer”, if not the end of 2024.

 

Public spending watchdog Audit Scotland expects the project to cost at least £293 million – three times the original contract.

 

Mr Swinney warned costs may rise again due to the delays. He said: “Persistent design gaps and build errors mean progress has been slower than planned. After the appointment last February of the new chief executive, substantial progress has been made."

 

Scottish Conservative transport spokesman Graham Simpson called it a “disgrace”, adding: “More delays, more costs and islanders left in the lurch.

 

“Even if the Glen Sannox is ready by the end of the year, it won't be ready for use by islanders as it will have to undergo sea trials.

 

“There is no guarantee it would be ready for next summer's season. The whole thing is a shambles."

 

A row erupted after Tory Highland and Islands MSP Donald Cameron sought another apology for the "complete and reckless neglect of our ferry service".

 

He said: “These ferries were due in 2018. They will be six years late. Communities are sick to the back teeth of these endless excuses. They rightly want ferries that work and run on time. Nothing more and nothing less.”

 

Mr Swinney replied he had apologised in a response to Scottish Labour's transport spokesman Neil Bibby.

 

He said: "I thought one of the obligations of members of parliament is to listen to what people actually say. So I apologise to people again, for the inconvenience and distress and difficulty that's been caused. The government's investment in ferries has been increasing very significantly indeed."

 

After interjections from opposition benches, Mr Swinney said: "Don't start shouting at me."

 

Earlier this month, a damning report from Audit Scotland revealed the final cost and completion dates of the Glen Sannox and Hull 802 ferries by Ferguson Marine remained uncertain.

 

"Despite additional Scottish Government funding in 2022/23 and 2023/24, the latest estimates suggest around £9.5m of funding is required for the ferries beyond the amount already approved."

 

It also raised concerns over £87,000 of performance bonus payments to senior managers at Ferguson Marine Port Glasgow during 2021/22.

 

Stephen Boyle, Auditor General for Scotland, said: “It is deeply concerning that the costs to complete these ferries have continued to escalate, whilst the island communities these boats are meant to serve remain significantly impacted.

 

“Despite substantial sums of public money being invested, there is still no certainty over how much the ferries will cost, when they will be ready or whether the shipyard has a viable future.

 

“It is unacceptable performance bonuses were awarded to senior managers at the shipyard, without proper governance for such payments. The Scottish Government needs to make sure its rules over pay are followed by this public body.”