The Official Report is a written record of public meetings of the Parliament and committees.
All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
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Displaying 312 contributions
Transport Committee [Draft]
Meeting date: 30 September 2026
Graham Simpson
Do you charge interest on the loans?
Transport Committee [Draft]
Meeting date: 30 September 2026
Graham Simpson
What is the rate at the moment?
Transport Committee [Draft]
Meeting date: 30 September 2026
Graham Simpson
Right.
I will now ask about the potential direct award. Actually, I think that that question is in two bits, because there is a potential direct award for a couple of vessels to replace the marine research vessel Scotia and the marine protection vessel Minna, and then there are the two ferries. I think that those are separate, and I will explain why.
I will take the ferries first. Back in 2023-24, in the Auditor General’s report on the audit of Ferguson Marine, he wrote about the yard’s five-year business plan. As you will remember, the business plan was based on the yard getting a direct award of the small vessel replacement programme from the Scottish Government, but that actually went out to tender and the yard did not get the award. In his audit report, the Auditor General said that there was
“legal advice that a direct award would be in breach of the conditions set out in the UK Subsidy Control Act”.
CMAL has publicly stated that the direct award of any contract for shipbuilding is not lawful. After the delays in the small vessel replacement programme and the Lord of the Isles replacement because of the consideration of direct award, has anything actually changed to make it legal?
Transport Committee [Draft]
Meeting date: 30 September 2026
Graham Simpson
Well, you find a contractor and they give you a price. If it is a mutual investment model, it would be what I always describe as a rent-a-road scheme, as that is what you are doing, in effect. If you are not renting the road, you have to pay more up front, I guess.
Transport Committee [Draft]
Meeting date: 30 September 2026
Graham Simpson
I outlined earlier that, in phase 1 of the small vessel replacement programme, the Government wanted to make a direct award but did not because it got advice that that was not legal at that time. That is still the case, as you have confirmed—as of today, it would not be legal. I think that the convener is asking at what point you decided to revisit the matter. There was an announcement by Kate Forbes—I think that it was in March—that the Government wished to pursue that line. Was that the point at which you were told, “Right—start work on making it legal”?
Transport Committee [Draft]
Meeting date: 30 September 2026
Graham Simpson
Is that a maximum of six months from now?
Transport Committee [Draft]
Meeting date: 30 September 2026
Graham Simpson
How long do you think that will take?
Transport Committee [Draft]
Meeting date: 30 September 2026
Graham Simpson
It would not be unrealistic for CMAL to say, “Look, hang on a sec. We’ve been through this with Ferguson’s. It didn’t deliver the two large ferries on time, it was way over budget, and its recent track record is not good. We think it would be better to test the market and see what else is out there.” That would not be an unreasonable position for CMAL to take, would it? If it says that that is what it should do because it will get better value for money that way, would you stop it from doing that?
Transport Committee [Draft]
Meeting date: 30 September 2026
Graham Simpson
I am not saying that it is unreasonable.
Transport Committee [Draft]
Meeting date: 30 September 2026
Graham Simpson
I do not really want to look back—I would rather deal with things as they are. I am glad that things have been sorted out. That is really positive.
You will have heard my earlier questions about the mutual investment model and private financing. What are your thoughts on that?