Meeting of the Parliament 09 December 2025
I ask Craig Hoy to allow me to make a bit more progress, and then I will be more than happy to take his intervention.
We want Ferguson Marine to be capable of supporting Scotland’s long-term maritime and economic interests. We also recognise the frustrations that are felt by Parliament, which the two previous speakers expressed, as well as those that are felt by island communities and, indeed, by the workforce due to the delays and cost pressures in the MV Glen Sannox and MV Glen Rosa projects.
The delivery challenges and governance issues at Ferguson’s have been significant, and it is right that we address them openly. I will always apologise to our islanders, many of whom are my constituents, for the disruptions that they have faced in the ferry network as a result of delays at the yard.
With our support, the board of Ferguson Marine has, over the past year, taken sustained action to recruit fresh leadership, strengthen governance standards and improve oversight. A new chief executive, Graeme Thomson, who brings extensive shipbuilding and engineering experience, was appointed in May. He is tasked with driving completion of the MV Glen Rosa and developing a long-term commercial strategy for the yard.
Board governance has been strengthened, too. The Ferguson Marine board has introduced clearer segregation of duties and more structured agenda planning, and it has enhanced its programme of board and committee meetings. Four new non-executive directors with strong commercial and shipbuilding expertise have been appointed, and the board will continue to review its governance arrangements over the next 12 months to ensure that they remain robust.
Internal audit capability has also improved substantially. External expertise from BDO Global has enabled Ferguson Marine to address all high-risk and most medium-risk audit recommendations, with strengthened reporting to the audit and risk committee and improved corporate and project risk registers.
Nevertheless, I recognise the Public Audit Committee’s concerns regarding earlier governance failings. I am very clear that the handling of certain matters during the financial year 2023-24—especially matters that were concealed from the board and from ministers—did not meet the standards that are expected of a publicly funded body. When they were uncovered, the board alerted ministers and Audit Scotland and took appropriate steps to address them, including through the removal of the former chief executive.
The improvements that are now embedded across leadership, assurance, financial controls and governance represent a meaningful shift in capability and discipline at the yard.