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4 July 2025
Urgent investment is needed to secure the future for the state owned shipyard Ferguson Marine Port Glasgow (FMPG).
This conclusion comes in a new report by the Scottish Parliament’s Public Audit Committee following the Committee’s consideration of the 2023/24 audit of Ferguson Marine by Audit Scotland.
The report highlights multiple and repeated failings, including leadership and board instability, inadequate internal audit, serious weakness in contractor oversight and governance failures around exit packages for senior staff.
These issues, together with the delays and cost overruns associated with the Glen Sannox and Glen Rosa, have caused significant reputational damage to the yard. The Committee now believes that urgent investment is needed to make sure it can be competitive once again.
During the Committee’s consideration, FMPG announced that the cost of the MV Glen Rosa had risen to £185 million and was delayed once more, this time until early 2026.
The Committee has expressed its serious concern over the increased cost and further delay to the ferry. It has now called on the Scottish Government to give urgent clarification about where the additional funds are coming from.
The report also notes that the yard does not have any further orders lined up beyond its current contract to deliver on the MV Glen Rosa. Something which compounds the concern expressed by the Committee about the future of the yard.
Today’s report also states that the organisation has failed to meet the standards expected of a publicly funded body and has called on the Government to urgently improve its oversight to address some of the longstanding weaknesses at the yard.
Committee Convener Richard Leonard MSP said:
“It is clear to the Public Audit Committee that there has been a long standing weakness in the management, governance and financial sustainability of this yard. That there are currently no further orders raises significant concerns for us about the future of the last commercial shipyard on the Clyde and its workforce.
“This is a state owned yard and the Scottish Government must do more to ensure that not only is its future secure, but that the MV Glen Rosa can be delivered as soon as possible. There has to be better oversight and governance of the work that is on going.
“There is no doubt that the yard has suffered significant reputational damage and that the workers at Ferguson Marine deserve better, the communities waiting for a new ferry deserve better and the people of Scotland deserve better.
“But it doesn’t have to be this way. Our Committee believes that the yard can once again be competitive. There is no shortage of potential work. With investment, and better oversight, this yard which has a distinctive and proud history can have a distinguished and positive future.
In December 2019, the Scottish Government brought the Ferguson Marine shipyard in Port Glasgow into public ownership after it had been placed into administration. This created a new entity, Ferguson Marine (Port Glasgow) Holdings Limited (FMPG). FMPG is a Non-Departmental Public Body wholly owned by the Scottish Government.
The Auditor General for Scotland laid his section 22 report, The 2023/24 audit of Ferguson Marine (Port Glasgow) Holdings Limited in Parliament on 17 December 2024.
The report highlights:
“a material risk and uncertainty over FMPG’s ability to continue as a going concern, for at least 12 months from the date of signing the accounts. This reflects concerns noted by FMPG management in the performance report. At the time of the annual audit, the Scottish Government had not agreed funding beyond 2024/25. It has now confirmed ongoing support for 2025/2 …”
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