Forbes: Ferries contract was not rushed for 'political reasons'

Finance Secretary Kate Forbes has said it is “entirely wrong” to suggest the contract to build two ferries was “rushed for political purposes” and that the contracts were signed by ferry bosses, not a Scottish Government minister.

Today in parliament Forbes faced questioning from Labour MSP Neil Bibby, who cited allegations made by former Ferguson Marine shipyard boss Jim McColl that the contract was signed by former Cabinet Secretary for Infrastructure, Investment and Cities, Keith Brown.

Speaking on the BBC’s Good Morning Scotland programme, McColl claimed that the SNP had launched a "propaganda campaign" against the management of Ferguson Marine which was done for "political purposes".

McColl said that had he known that statutory harbour authority Caledonian Maritime Assets Limited (CMAL) had advised against the Ferguson shipyard being awarded the contract, he would not have gone ahead with the deal.

He added: “I believe it was Keith Brown at the time who signed it.”

Previously, senior SNP figures – including First Minister Nicola Sturgeon – have suggested the contract was approved by former MSP Derek Mackay, who was a junior minister for transport at the time.

However, in response to Bibby’s questions, Forbes said: “Firstly, the timetable does not support that notion, given that Ferguson [Marine] was publicly announced as the preferred bidder in August.

“Secondly, the contract was awarded in line with all of the procurement rules and practices in the normal way, as the Audit Scotland report confirms.

“And thirdly, presiding officer, contrary to what Jim McColl said this morning on the BBC, it was the chief executive of CMAL and Jim McColl himself, who signed the contract.

“There's a man with a clear interest in shifting the blame on others. When the root cause, ultimately to the delays of these important vessels was the construction under FMEL [Ferguson Marine].”

An Audit Scotland report last week said there had been “multiple failings” which have prevented two new ferries for the Clyde and Hebrides routes being delivered on time and on budget.

In particular, it criticised a “lack of transparent decision-making” after CMAL officials warned ministers against continuing with the award after it became clear Ferguson Marine could not provide a refund guarantee.

The vessels are now expected to cost £240m - 2.5 times more than the original price tag - and will be five years late.

In a follow up question, Bibby asked: “Is Kate Forbes able to confirm whether the award of this contract without a full refund guarantee was discussed and agreed by the cabinet?

“If so, were they made aware of CMAL’s concerns, or if not, is the Scottish Government’s position the decision to ignore CMAL was made by Derek Mackay and Derek Mackay alone?”

Forbes responded: “There were no concerns raised at the point of announcing the preferred bidder in August 2015. And that is why the preferred bidder was announced based on the advice of CMAL.

“FMEL clearly scored the highest score overall. When concerns were raised mitigations were put in place. That is all very well documented in the Audit Scotland report.”