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.
All Official Reports of public meetings of committees.
Displaying 3918 contributions
Public Audit Committee
Meeting date: 4 May 2023
Richard Leonard
Okay. Obviously, as the Public Audit Committee, we are interested in the public accountability of the service, and the only way for us to achieve that is to have the data and that degree of transparency. You might share our frustration, but I re-emphasise to you that we think that it is extremely important, because, for many people, general practice is their access point to the national health service.
Public Audit Committee
Meeting date: 27 April 2023
Richard Leonard
For the avoidance of doubt, the enterprise must comply with the Scottish public finance manual guidance, so there should be openness and transparency, there should be value for money and there should be an internal audit function, for example. My reading of the external auditor’s report is that FMPG did not have an internal audit function at the time of reporting. Is that still the case?
Public Audit Committee
Meeting date: 27 April 2023
Richard Leonard
Yes—we will let you move on, and you can come back to that.
My other question concerns the FMI report; I guess that I am asking you if you want to add to what you said about that earlier. Is the FMI report the report that has been commissioned by the Government and the yard? Is there other work going on? What is the synergy between the Scottish Government sponsorship team and the yard in developing a plan for a viable, long-term future?
Public Audit Committee
Meeting date: 27 April 2023
Richard Leonard
I am interested in shipbuilding skills.
Public Audit Committee
Meeting date: 27 April 2023
Richard Leonard
So there is a possibility that there could have been a pre-emptive strike. The 2021-22 Scottish Government pay policy guidelines stipulated a minimum 2 per cent pay increase for public sector workers who were earning between £25,000 and £40,000, and it was 1 per cent for those who were earning between £40,000 and £80,000. The payment of a 17.5 per cent bonus was therefore, in anybody’s terms, a significant deviation from the Government’s pay policy.
Public Audit Committee
Meeting date: 27 April 2023
Richard Leonard
We have received apologies from Colin Beattie. I welcome Bill Kidd to the committee.
Public Audit Committee
Meeting date: 27 April 2023
Richard Leonard
I have a couple of questions about the wider business picture and the future of the yard. I think that I can speak for the committee as a whole in saying that we ask these questions because we want the yard to succeed and have a long-term future.
The present management team is involved in an arrangement with BAE Systems. From memory of what we heard when we visited the yard, that does not just involve sending FMPG employees down to the BAE Systems yards in Glasgow; it is also about work being brought from BAE Systems to be carried out in Port Glasgow. In the report that we have before us this morning, you say that some cash-flow issues arose from uncertainties about the financial arrangement between BAE Systems and FMPG. Could you elaborate a bit more on what those uncertainties are?
Public Audit Committee
Meeting date: 27 April 2023
Richard Leonard
Thank you very much indeed. We have run slightly over the time that we had anticipated, but it was important to draw out some of the important pieces of evidence that you have given us this morning.
As always, I thank you very much for your co-operation and frankness, which has been very helpful for us. We will, of course, need to determine what our next steps are but, for the moment, I thank the Auditor General, Mark Taylor and Joanne Brown for your candour this morning, which has been very valuable. I now move the committee into private session.
10:27 Meeting continued in private until 11:00.Public Audit Committee
Meeting date: 27 April 2023
Richard Leonard
Thank you. I will turn to a couple of areas. In paragraph 11 of your report—which, I think, is an amplification of a letter that the chief executive officer of FMPG that was sent to the convener of the Scottish Parliament’s Net Zero, Energy and Transport Committee—you highlight that the estimated costs for the Glen Sannox, or 801, are £101 million and that the estimated costs for 802 are £108.6 million. Why is 802 more expensive than 801?
Public Audit Committee
Meeting date: 27 April 2023
Richard Leonard
That is fine. I suppose that the expectation would have been that the second vessel would benefit from lessons learned in the construction of the first vessel, which would lead to a reduction in the cost base.