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

Meeting date: 9 June 2022

Craig Hoy

Yes or no. Is there still the possibility that you could pull the plug on the two vessels?

Public Audit Committee

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

Meeting date: 9 June 2022

Craig Hoy

You still reserve the right to recommend to ministers that they pull the plug, then.

Public Audit Committee

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

Meeting date: 9 June 2022

Craig Hoy

Various conversations took place throughout the process, but we start from the premise that the project was bungled at the point of procurement, bungled at the point when the refund guarantee came into question, bungled at the design phase, and bungled at the point at which requests were made for some degree of arbitration between the parties.

In the submission from FMEL’s management, Mr McColl states that, in February 2017, the shipyard

“informed Scottish ministers that it was highly probable that the vessels would be late.”

It is clear that alarm bells were being rung at that point.

The submission from Mr McColl and his colleagues goes on to say:

“Our chairman met with the First Minister on the 31st of May 2017 at Bute house to request her intervention to facilitate a meaningful discussion around the very significant unplanned changes and cost increases being experienced on the two ferry contracts.”

What readout did Transport Scotland or the Scottish Government get from that meeting? Who else would have been present?

Public Audit Committee

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

Meeting date: 9 June 2022

Craig Hoy

I would disagree with you on the issue of whether it was bungled. It could be alleged that it was bungled at the point of nationalisation. Could you flesh out for the committee why the Scottish Government decided to proceed with nationalisation without a full understanding of the costs and challenges that were faced in relation to the vessels?

Public Audit Committee

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

Meeting date: 9 June 2022

Craig Hoy

I accept all that but, at the point of nationalisation, there was a material change in where the risk for future cost overruns would lie. It was shifted on to the taxpayer. You are the deputy director of the Scottish Government’s strategic commercial interventions division, so you should be able to read a contract. The way in which the contract is now laid out is such that, in effect, it is writing a blank cheque, is it not? The taxpayer will continue to fund the vessels until they are completed or some other decision is taken.

Public Audit Committee

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

Meeting date: 9 June 2022

Craig Hoy

The question is looking for a yes or no answer.

Public Audit Committee

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

Meeting date: 26 May 2022

Craig Hoy

You are absolutely certain that nobody was overruled and that there was no threat to overrule anyone.

Public Audit Committee

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

Meeting date: 26 May 2022

Craig Hoy

I will ask about the culture around the way in which Government works. Obviously, there are formal channels and then there are back channels. For example, when did you last speak to the First Minister?

Public Audit Committee

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

Meeting date: 26 May 2022

Craig Hoy

I will start with a question for clarification, just to get it on the record. In your view, which minister took the final decision to proceed with the contract?

Public Audit Committee

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

Meeting date: 26 May 2022

Craig Hoy

Which minister signed the contract?