The Scottish Government has introduced a new plan to preserve the Ferguson shipyard (Ferguson Marine) in Glasgow. This yard has been under bankruptcy management since 2019 and is nearing the completion of its last commercial order, having announced that it is looking to reduce its workforce.
Ferguson's Financial Troubles and the Government's New Plan
The Ferguson yard is the last remaining facility of a long tradition of shipbuilding in the Clyde and Glasgow area, but like many yards, it has faced serious financial difficulties. The size of this yard has limited its ability to compete for large contracts, including contracts to build replacement ferries for the state-owned CalMac.
The troubles of this yard have been exacerbated by the costly project to build passenger ferries powered by liquefied natural gas named Glen Sannox and Glen Rosa. These projects have been years behind schedule and have incurred significant costs. While Glen Sannox has recently been commissioned, reports of ongoing issues have emerged.
Future Plans and Political Criticism
Stephen Flynn, the Scottish Transport Minister, announced the government's new plan to preserve jobs at the yard during the transition period. He stated in Parliament that the government has set aside an unspecified amount as an investment to build tugboats based on pre-packaged designs. These tugboats will be produced without any specific orders or customers.
This plan has faced new political criticism. Opposition party members have pointed to a lack of details and reminded that this plan comes after the government's previous promise in March to provide four new contracts for Ferguson. Currently, the yard has no other business after delivering Glen Rosa, and management has stated that it has asked 70 employees to agree to voluntary separation.
The government had previously assisted this yard through a subcontract for the construction of three structural units for the British Navy fleet. However, government officials have defended the delays in project execution, stating that they are reviewing these projects to ensure compliance with subsidy laws.
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