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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 5 May 2021
  6. Current session: 12 May 2021 to 7 July 2025
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Displaying 893 contributions

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Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 8 September 2022

Craig Hoy

You would concede, however, that there was some degree of political risk in proceeding.

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 8 September 2022

Craig Hoy

CMAL expressed concerns to this committee about the razzmatazz and fanfare around the announcement of the preferred bidder status. Obviously, it thought at that point that that almost locked in the deal and that it would bind its hands in future negotiations. Did Transport Scotland advise Scottish ministers to perhaps consider a more discreet way to achieve the milestone of preferred bidder status?

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 8 September 2022

Craig Hoy

Good morning, Mr Middleton. I want to look deeper into the issue of the builders refund guarantee and Jim McColl’s account of the discussions that he undertook with—he said—the Scottish Government and CMAL in developing a bid, in which, he says, you knew that they were not in a position to offer a builders refund guarantee. That is documented in an exchange of letters between Stuart McMillan and Derek Mackay in February 2015, in which it is intimated that it would be possible to proceed without a full builders refund guarantee. What was your awareness of that correspondence?

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 8 September 2022

Craig Hoy

The letter of February 2015 has not been formally released to the committee, but it has been quoted in the press. Among the reports of that, Mr Mackay gives reassurance to Mr McMillan that it would be possible to proceed without a builders refund guarantee. Mr Mackay says that CMAL had, on occasion, “taken different approaches”. Are you aware of any “different approaches” in relation to that fundamental issue of a builders refund guarantee regarding any prior procurements?

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 8 September 2022

Craig Hoy

The culture of Government appears to be quite tight, so it would be safe to assume that there were channels of communication.

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 8 September 2022

Craig Hoy

Obviously, you were not there for the unveiling of preferred bidder status. However, it was said that you would take the lead on that announcement. Subsequently, something changed. Would it have been the First Minister’s office’s decision to press for that to be announced at a high-profile photo-shoot style event rather than, as Mr Middleton said, through the issuing of the usual contractual letters?

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 8 September 2022

Craig Hoy

Are you a bit concerned that you were not there for the awarding of preferred bidder status but that everything seems to have hung on that decision and that there is a sense that, in effect, what happened afterwards was almost a fait accompli? With regard to the position of the Scottish Government and the First Minister, given that these documents have come to light, are you concerned that you are being lined up to be the fall guy—that this is operation blame Derek Mackay?

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 8 September 2022

Craig Hoy

Mr Mackay, you said that all options on nationalisation had been exhausted, but I challenge that. Jim McColl said that he put to you a Queen’s counsel’s report that showed that a financial restructuring would have meant that he, FMEL and the Government would have split any future risk, potentially saving the taxpayer £100 million. He says that he gave you that report and that you either ignored it or dismissed it without taking legal advice. Is that correct?

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 8 September 2022

Craig Hoy

You have mentioned financial risk. There was an element of political risk in the decision, in that the contract was being awarded to a well-known businessman who was aligned to the Scottish National Party, the party of Government, and to the independence cause. What were your thoughts at the time about awarding such a high-profile contract to such a figure, who was clearly known to have connections to the party of government?

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 8 September 2022

Craig Hoy

Good morning, Mr Mackay. Thank you for appearing before the committee.

In his report, the Auditor General identified a major issue in relation to insufficient documentary evidence, which has been a concern for the committee. Subsequent to the report’s publication, there was documentary evidence to suggest that you were responsible, and a release came out to suggest that you were responsible for taking the decision. We now know who took the decision, but we do not know why.

Do you think that there is still some documentary evidence out there that might give us further information as to why the decision was taken, first to announce Ferguson’s as the preferred bidder, and secondly, to award the contract despite the misgivings about a full builders refund guarantee?