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Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 4 May 2021
  6. Current session: 13 May 2021 to 10 September 2025
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Displaying 917 contributions

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Public Audit Committee

Section 22 Report: “The 2021/22 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 1 June 2023

Craig Hoy

So the First Minister and the Scottish Government are of the expectation that no bonuses will be paid but, unfortunately, they have not looked into the contracts sufficiently to realise that you are obligated to continue making bonus payments now and into the future.

Public Audit Committee

Section 22 Report: “The 2021/22 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 1 June 2023

Craig Hoy

Do you feel that you are coming under some political pressure to go and renegotiate those contracts?

Public Audit Committee

Section 22 Report: “The 2021/22 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 1 June 2023

Craig Hoy

However, it is safe to say that you cannot prevent payments being made under historical arrangements, so the expectation is that there will be further bonus payments made to senior management at the yard.

Public Audit Committee

Section 22 Report: “The 2021/22 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 1 June 2023

Craig Hoy

That is very good to hear, but we must compare and contrast that with the First Minister’s assertion that there would be no further bonus payments made in relation to 801 and 802.

Public Audit Committee

Section 22 Report: “The 2021/22 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 1 June 2023

Craig Hoy

Good morning, gentlemen. Mr Tydeman, when we visited the yard, you kindly gave us a tour and a briefing. We also got a briefing from some of the trade unionists and some of the front-line staff who have been there for a considerable time. One of the issues that you identified was a potential cash-flow issue as you were bringing in potential new work. You said that you would make a cash call to the Scottish Government. Will you give us an updated snapshot of the yard’s cash-flow position and whether you expect to make any further cash calls to the Scottish Government for the yard rather than the vessels?

Public Audit Committee

Section 22 Report: “The 2021/22 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 1 June 2023

Craig Hoy

Good. When we spoke to some of the staff, they reflected negatively on the period prior to your appointment. The impression was given of a gravy train—I will not try to find the maritime equivalent of that—running through the yard, with people on big salaries and, potentially, big bonuses coming in and not necessarily contributing to the yard’s health and wellbeing. Can you say, hand on heart, that that gravy train culture has come to an end?

Public Audit Committee

Section 22 Report: “The 2021/22 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 1 June 2023

Craig Hoy

Mr Irwin, the Auditor General’s section 22 report said that the size of the bonus payments that were made in 2021-22 and 2022-23 was unacceptable. Do you recognise that comment? In what way was it unacceptable?

Public Audit Committee

Section 22 Report: “The 2021/22 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 1 June 2023

Craig Hoy

I want to draw your attention to what the First Minister said on 27 April in response to my colleague Douglas Ross. He said that

“those bonuses should not have been paid.”

He agreed with Douglas Ross on that and said:

“I have made it clear that bonuses should not be paid in relation to vessels 801 and 802.”

He went on to say:

“It is my expectation and the Government’s expectation—the chair of Ferguson Marine knows this very well—that there should not be bonuses in the current financial year, 2023-24, in relation to vessels 801 and 802.”—[Official Report, 27 April 2023; c 11-12.]

Was the First Minister forcing your hand and asking you to break employment contracts?

Public Audit Committee

Section 22 Report: “The 2021/22 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 1 June 2023

Craig Hoy

Perhaps Mr Irwin would like to come in on that briefly.

Public Audit Committee

Section 22 Report: “The 2021/22 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 1 June 2023

Craig Hoy

That is fine. When would ministers have been made aware of the fact that these bonus packages were in place and that bonuses were paid in the two years that were identified?