Stuart McMillan MSP wrote to the Cabinet Secretary for Wellbeing Economy, Fair Work and Energy, Neil Gray MSP, on Tuesday evening following his statement in the chamber regarding Ferguson Marine.
The Cabinet Secretary has already responded to the local SNP MSP’s correspondence, giving assurances that he is working with the yard to develop a new business plan which better reflects current market conditions and is consistent with the requirements of subsidy control.
Mr Gray went on to say that while procurement strategy for the Small Vessels Replacement Programme has yet to be agreed, his focus is on supporting the yard to develop plans that would enhance their ability to secure this work.
Commenting, Stuart said:
“This response from the Cabinet Secretary emphasises the Scottish Government’s commitment to Ferguson Marine.
“Like me, Mr Gray admires the quality of the workforce and shares my determination to do all we can to maintain shipbuilding in Inverclyde. The yard is hugely important to the local economy and is well loved amongst the community.
“I’ll continue to advocate for the yard and ensure that all options are being considered by the Scottish Government.”
Below, the text of Stuart’s email to the Cabinet Secretary and his response.
Dear Neil,
I hope you are well.
Thank you for the statement you made in the chamber on 14th November 2023. The update, in particular regarding the MCA was helpful.
As you will be aware, I asked a question regarding the Small Vessel Replacement Programme (SVRP). This programme has become even more crucial for Ferguson Marine now that a launch date for the Glen Rosa has been announced.
If the yard makes the progress we want to see in the coming months, the yard will have a challenging future and it will see more of the workforce leave for opportunities elsewhere.
I accept that the Scottish Government have invested vast sums of taxpayers money into the yard. I obviously would like to see more capital investment go into the yard to make it more competitive and as you are aware, I have added my name to correspondence in this regard. However, new information was presented to me indicating that the yard could, without additional investment, undertake the SVRP. The main activity that would be required is a reconfiguration of the yard to improve workflow.
Ultimately, capital expenditure is required in the yard to make it competitive internationally. I would like this to happen. However, if we learn from the mistake of the past, ie, rebuilding a shipyard whilst attempting to build the two most complicated ships the yard has ever built, then we can and must do things differently for the future.
The yard has proven it can successfully build smaller vessels. The SVRP is an ideal contract for the yard to rebuild its reputation and ensure it can train the next generation of shipbuilders. The longer term contract of the SVRP would help provide the stability of work the yard needs whilst rebuilding the trust within the industry.
I appreciate a direct award is challenging legally. However, if there is any way to make this happen, I urge you and Scottish Ministers in the strongest possible terms to find a way to safeguard shipbuilding in Port Glasgow and for Scotland.
I have long held the view that shipbuilding in Scotland has a future. I know that the Netherlands are now re-investing in their shipbuilding industry as are other countries. For us not to do so will place Scotland at an even further competitive disadvantage and make it even harder to win non public sector business. I know that is not what you want to see.
Once again, thank you for the update yesterday and I am always on hand to help our shipyard.
Best regards
Stuart
Hello Stuart
Thank you for your email yesterday. I am grateful for the support you continue to offer to Ferguson Marine and share your determination to ensure that the yard has a sustainable and successful future.
Whilst we were unable to support the initial investment proposal, as I indicated in the Chamber on Tuesday, we are working with the Board of FMPG as they develop a new business plan which better reflects current market conditions and is consistent with the requirements of subsidy control. The Chair of FMPG understands this position and I have been encouraged by the way in which the Board is reacting to the challenges ahead. They will consider a number of options, including the benefits that might come from reconfiguring the yard. I expect this work will conclude early in the New Year and my team have offered any support required to complete this work effectively.
I am conscious that the small vessels replacement programme represents a critical opportunity for the yard and that the kind of vessels we will be looking to procure are similar to those that have been built previously at the Fergusons Yard. The procurement strategy for these vessels has yet to be agreed and at this stage my focus is on supporting the yard to develop plans that would enhance their ability to secure this work.
Thank you again for your continuing support for Ferguson Marine. I know that we share an admiration for the quality of the workforce and a determination to do all we can to maintain shipbuilding in Inverclyde with all the benefits that the industry brings to the local community.
Neil Gray
