Meeting of the Parliament (Hybrid) 20 April 2022
I welcome this Liberal Democrat debate. The Parliament has just debated the cost of living and now we are debating the cost of the Scottish Government’s failure: severe and unacceptable delays to vessels 801 and 802, which have already cost the taxpayer £250 million.
Ministers say that the process that led to cost overruns and delays was “normal”, as if there is nothing to see here. As Graham Simpson said, let us hear what the Auditor General has to say about that at tomorrow’s meeting of the Public Audit Committee.
The truth is that this is one of the biggest public procurement failures in 20 years, and the failure to deliver the vessels on time and on budget has deprived islanders of the lifeline ferry services that they need. This week, islanders on Arran are yet again feeling the impact of being reliant on old ferries that are in desperate need of replacement.
I believe now, as I believed in 2014, that the long-term solution is a national ferry-building programme, and I believe now, as I believed then, that any replacement programme can bring new opportunities to Ferguson’s and the lower Clyde. Scottish Labour has no truck with those who would have let the jobs at Ferguson’s go to the wall. We will always stand by the dedicated, professional and blameless workforce at Ferguson’s.
However, nobody can excuse the failures and the mismanagement that have led us to where we are now, which put those jobs at risk. Audit Scotland found a “multitude of failings”, and there are still aspects of the scandal that Audit Scotland did not look at, such as the procurement decisions that were taken prior to August 2015 and the adequacy of vessel designs.
There are further questions that Parliament should expect answers to, such as why the Government-appointed turnaround director, who earned £2 million, did not turn around the yard. Transparency and accountability are essential if we are to fully understand what went wrong and to have confidence that the Government can put it right.
I want to be clear about what Scottish Labour believes must happen next. There must be a full public inquiry. There must be clarity about ministerial decisions in relation to the awarding of contracts without full refund guarantees. There must be maximum transparency. The documents that the Scottish Government released more than two years ago were released under Derek Mackay—the minister the Government is now trying to blame for the fiasco.
There must also be real ministerial accountability. The Cabinet Secretary for Finance and the Economy would not stake her reputation on the revised timescales that she announced to Parliament last month. Perhaps she will confirm whether that is still the case when she closes for the Government.
The truth is that responsibility for the fiasco goes straight to the top. There has been a ministerial merry-go-round, with the fiasco extending from the involvement of Alex Salmond in 2014 to that of Derek Mackay, and including Nicola Sturgeon’s launching of one of the ferries before it was done, with painted-on windows. Fiona Hyslop, Michael Matheson, Humza Yousaf and Graeme Dey have all come and gone. Jenny Gilruth is now the Minister for Transport and, today, Ivan McKee and Kate Forbes are speaking for the Government.
It is the Scottish Government that is ultimately responsible for the procurement of the vessels, and it is the First Minister who is ultimately responsible for the Scottish Government. Therefore, Labour is again calling on the First Minister to take direct ministerial responsibility. There should be no more buck passing and no more blame shifting; it is time for real accountability.
Today, we ask Parliament to support our calls for the First Minister to assume responsibility for the Ferguson’s fiasco; finish the ferries, do it right, do it transparently and do what it takes to bring the scandal to an end.
The Lib Dems have rightly asked whether there will be ministerial resignations if there are any more delays or extra costs. I make it clear that I do not think that it matters how the Scottish Government votes or what it says today. If there are any further delays or cost overruns, the public—who have paid the cost of the Government’s failure—will expect resignations.
I move amendment S6M-04051.2, to insert at end:
“; further calls on the First Minister to lead government efforts to secure the completion of vessels 801 and 802 by taking ministerial responsibility for government investments in Ferguson Marine; notes that the associated costs to the taxpayer include almost £2 million paid to a turnaround director of the yard; considers that, given the ongoing delays to the vessels, this cannot be considered value for money; notes that there remain unanswered questions with regards to the awarding of the contract for vessels 801 and 802, and calls on the Scottish Government to confirm whether a ministerial direction was issued and to publish a copy of any such direction.”
Motions, questions or amendments mentioned by their reference code.
- S6M-04051.2 Economy: Ferries Motion