Committee
Rural Economy and Connectivity Committee 26 August 2020
26 Aug 2020 · S5 · Rural Economy and Connectivity Committee
Item of business
Construction and Procurement of Ferry Vessels
Yes. Standardisation is important, as I have mentioned before at committee. There are a number of benefits of standardisation. For example, if a smaller number of components need to be stored in inventory, that saves money, and having standardised facilities on vessels, including the wheelhouse and the steering mechanisms and so on, makes training easier for staff, which means that there is more interoperability of staff and crew from vessel to vessel. Standardisation helps in other respects. For example, we have a problem where the parts for a number of vessels that were built many years ago are now obsolete, so they have to be ordered on a bespoke basis. As Ms Harper may know, we have provided resilience funding to both networks to try to ensure that there is a stock of high-risk parts available for maintenance. Excuse me—I will just take a wee sip of water. More generally, we are trying to achieve standardisation. That is not necessarily around 801 or 802, although they will be valued vessels for the fleet. However, we are learning a lot in the Islay vessel procurement process and the process of reaching a conceptual design for the tender specification. CalMac and CMAL are working together to consider how standard design features can help the efficiency of the vessels. The member is also right to raise the issue of ports and harbours. It is important to stress that 801 and 802 can operate from more than just Ardrossan and on the triangle routes. I think that our statement makes clear what those other harbours are but, if not, we can provide that information to the committee. Once the vessels are in service, they could provide a resilience role on a number of routes, but as we look to standardise major vessels and other vessels—there is already potential for quite a lot of standardisation in our smaller vessels—we can start to use the vessels in other harbours. We can bear that in mind as we look to renew our harbours. As I said, I understand why the committee has linked the investment in the harbours and the cost of the ferries and has come up with a composite number but, strictly speaking, the costs of harbour renewal are not linked to the two vessels that are currently going through procurement. We have linkspans and harbours that will be approaching life expiry and will need to be renewed for safety reasons and for on-going use. When we are designing the replacements, we need to ensure that they can facilitate that standardisation. That might require dredging in some places because, with standardised vessels the draught of the vessel might otherwise be too deep for the harbour that it will serve. A number of issues need to be factored in, and that drives the cost. I apologise for the length of the answer, convener.
In the same item of business
The Convener
Con
Item 3 is to take evidence for our inquiry on the construction and procurement of ferry vessels. This is our last scheduled evidence session, and we have two...
The Minister for Energy, Connectivity and the Islands (Paul Wheelhouse)
SNP
Yes, thank you, convener. Good morning to colleagues here and online. I welcome the opportunity to address the committee in my capacity as Minister for Energ...
The Convener
Con
Are you happy that all the costs relating to the ferries were identified in yesterday’s statement?
Paul Wheelhouse
SNP
I am certainly happy that the statement that Fiona Hyslop gave to Parliament yesterday set out our latest understanding of the delivery timetable and the rev...
The Convener
Con
You said that there has been no increase in costs. When the committee started its inquiry, we were looking at costs of around £97 million. So far, we have sp...
Paul Wheelhouse
SNP
I think that we have to be clear about the position, convener. I appreciate that you are trying to get to the truth and present an accurate picture to Parlia...
The Convener
Con
The figure of £90 million that I have was supplied by the Scottish Parliament information centre, and it was for improvements to the harbour facility to allo...
Paul Wheelhouse
SNP
It is really important for me to make the point that we do not require to enlarge the harbour to allow vessels 801 and 802 to enter. My understanding is that...
The Convener
Con
But they cannot berth.
Paul Wheelhouse
SNP
However, as the communities that are served by that service know to their cost, we need to upgrade those facilities. The Ardrossan task force, in engagement ...
The Convener
Con
Just finally on costs, before I bring in some other members, I thank you for the detailed update report that has been submitted to the committee. I always lo...
Paul Wheelhouse
SNP
That goes to the heart of the work of International Contract Engineering, the contractors, and their design team employed by Tim Hair and the turnaround team...
The Convener
Con
Fran Pacitti, do you have a value for the potential cost of this significant problem that has been identified?
Fran Pacitti (Scottish Government)
I would defer on the detail of that to Tim Hair, to whom you will speak later today. You will wish to correct this with Mr Hair, but my understanding is that...
The Convener
Con
So, the £110 million, which might go up to £114 million—which might go up a bit more yet—covers the potential risk to the hull. The committee was not given t...
Fran Pacitti
The risk register will be kept under review. I am not surprised that it has been updated, as the team at Ferguson’s have been able to spend more time and inv...
The Convener
Con
So there will be no extra costs if the hull is faulty.
Paul Wheelhouse
SNP
There is still £5.5 million of contingency remaining in the figures that Fran Pacitti and I have quoted this morning, so there is still scope for additional ...
The Convener
Con
John Finnie wants to come in, followed by Graham Simpson.
John Finnie (Highlands and Islands) (Green)
Green
Thank you, convener—my question relates to your exchange with the minister about the harbour design. I know that you want to be upbeat, minister, and I am v...
Paul Wheelhouse
SNP
Mr Finnie is absolutely correct to identify that that is an issue. Although we have confidence in the system, it is clear that, as far as communities and wid...
The Convener
Con
Graham Simpson wishes to come in; I will then move to the next questions, from Angus MacDonald.
Graham Simpson
Con
This question follows on from the mention of Ardrossan and the work that is required there. You are familiar with the issues there, minister, particularly in...
Paul Wheelhouse
SNP
It has been suggested, including by your colleague, John Scott, that Troon would be an alternative to Ardrossan. In his capacity, championing his local area,...
The Convener
Con
Minister, could I ask you to look in my direction occasionally, please, so that I can keep things moving along among committee members. There are a lot of qu...
Paul Wheelhouse
SNP
Apologies, convener.
Angus MacDonald
SNP
Good morning, minister and Ms Pacitti. First, I thank you and your officials for the detailed written submission to which you referred in your opening remark...
Paul Wheelhouse
SNP
Thank you for your kind remarks about the written statement. I appreciate that it is a lot of material for the committee to read, but I hope that it is of as...
Angus MacDonald
SNP
It is, thanks. We will certainly come back to you, if required. You mentioned a review of the tripartite arrangements. It is probably fair to say—although I...
Paul Wheelhouse
SNP
I am keen to emphasise that we have confidence in the procurement process. That is irrespective of the fact that the committee and wider stakeholders have hu...