Committee
Rural Economy and Connectivity Committee 05 February 2020
05 Feb 2020 · S5 · Rural Economy and Connectivity Committee
Item of business
Construction and Procurement of Ferry Vessels
We have heard evidence from the turnaround director, Tim Hair, and we have looked at the review board report. I am sure that you are aware that the report is very critical of management at Ferguson Marine. It says that FMEL did not maintain adequate project plans or records management systems; that Ferguson Marine exercised a lack of management control over design and construction subcontractors; that there was poor storage of materials and poor stock control; and that there was only ad hoc control of engineering change. Those are just some of the criticisms in the report. Will you give us your thoughts on the report and whether it is accurate?
In the same item of business
The Convener (Edward Mountain)
Con
Good morning and welcome to the fifth meeting in 2020 of the Rural Economy and Connectivity Committee. I ask everyone to ensure that their mobile phones are ...
Luke van Beek (Former Independent Adviser to the Scottish Government on Shipbuilding)
Of course. Good morning. I was taken on by the directorate of economic development to provide assurance that the revised shipbuilding programme was being kep...
John Finnie (Highlands and Islands) (Green)
Green
Good morning, Mr van Beek. Thank you for providing that background. In your view, did Ferguson Marine have access to the physical capacity, workforce and te...
Luke van Beek
When I first assessed the yard against that question—you should bear in mind that I did not start what I was doing until June 2018—I was in no doubt that it ...
The Convener
Con
We will get on to that issue later.
John Finnie
Green
Yes, I was going to say that colleagues have a number of questions on that. Could you clarify something for me? You said that in June 2018 “resources were ...
Luke van Beek
I make it clear that the plan was rebaselined in May 2018.
John Finnie
Green
For the avoidance of doubt, will you say which plan that is, please?
Luke van Beek
The plan for building the two ships. The shipbuilding plan was rebaselined in May 2018. The first thing that I was involved in was assessing that plan again...
John Finnie
Green
There were three elements to my original question: physical capacity, workforce and technical expertise. Were the deficiencies in the technical expertise res...
Luke van Beek
I suppose that the answer is yes, in the loosest sense, because there were not enough people. In particular, FMEL was short of two ship managers, who were re...
Mike Rumbles (North East Scotland) (LD)
LD
The plan was rebaselined 18 months ago, but we were two and a half years into the project at that point. I am more interested in the procurement process. W...
Luke van Beek
That was not done by me at that time. 10:00 It is interesting, and perhaps I could expand a little here. I had no involvement before May 2018, but my ini...
Peter Chapman (North East Scotland) (Con)
Con
On physical capacity, we heard in previous evidence that there was not enough room on the dockside to build two ships side by side. Was that something that y...
Luke van Beek
By the time I was involved, we had one ship on the slipway and one ship in the water. I cannot really answer that question. In the situation that I saw when ...
Jamie Greene (West Scotland) (Con)
Con
I have a background question. You mentioned various Government departments. Why were you instructed by the directorate of economic development rather than Tr...
Luke van Beek
As I said, the initial approach from the Scottish Government came from Transport Scotland, but that was in the context of carrying out a gateway review. Subs...
Stewart Stevenson (Banffshire and Buchan Coast) (SNP)
SNP
I want to explore, rather narrowly, some of the project management, because you are clearly in a position to make some observations about that. I have run pr...
Luke van Beek
Not really. The problems that occurred around the time when I wrote that report were well understood by the yard. The yard’s project management system had sh...
Stewart Stevenson
SNP
You wrote, “This sequence is currently broken”, which I take to mean that, in the context of the Gantt chart and the work breakdown structure that one woul...
Luke van Beek
Yes.
Stewart Stevenson
SNP
Therefore, predecessor activities that needed to be completed before a move to subsequent activities had not been completed. Although the plan might reflect ...
Luke van Beek
At that time, yes.
Stewart Stevenson
SNP
There are no simple answers, and I do not want to simplify. However, all that suggests that some of the reworks that we might now face stem from that deviati...
Luke van Beek
I am not in a position to comment on that, because I do not know what the situation is today. However, I certainly agree with you that there had to be remedi...
Stewart Stevenson
SNP
An issue that seems to have emerged is the use of technical solutions that were deviations from the contract, in particular Axilock joints in the engine room...
Luke van Beek
I do not know the answer to that, because it was not part of my remit to check that sort of thing.
The Convener
Con
Colin Smyth has some questions—sorry, I see that Mike Rumbles has a follow-up question. Do not look aggrieved, Mike; if I had seen you sooner, I would have b...
Mike Rumbles
LD
Thank you, convener. Mr van Beek, how do you justify your conclusion that Ferguson Marine was a competent and well-managed shipyard, particularly in light o...
Luke van Beek
I have read the report.