Skip to main content
Loading…

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.  

Filter your results Hide all filters

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 16 January 2026
Select which types of business to include


Select level of detail in results

Displaying 3682 contributions

|

Public Audit Committee [Draft]

Scottish Government Strategic Commercial Assets Division

Meeting date: 21 May 2025

Richard Leonard

I will finish with this point. Earlier in the meeting, Mr Rhatigan, I think, said that he thought that the GFG Alliance arrangement in Lochaber meant that the Scottish Government had “big exposure”. The committee’s continuing interest in the fortunes and business performance of the GFG Alliance, with the Serious Fraud Office inquiries and all the other things that go along with that, lies in what exposure that places on the Scottish Government and Scottish public funds. We therefore retain a keen interest in this area.

On that note, I will have to draw this morning’s proceedings to a close. We have run quite a way over our anticipated time.

I thank our witnesses, Dermot Rhatigan, Colin Cook and director general Gregor Irwin, for their attendance and willingness to answer our questions. Thank you very much for your evidence this morning.

11:41 Meeting continued in private until 12:05.  

Public Audit Committee [Draft]

Scottish Government Strategic Commercial Assets Division

Meeting date: 21 May 2025

Richard Leonard

I will bring the deputy convener back in a little bit later, but Graham Simpson has some questions to put to you.

Public Audit Committee [Draft]

Decision on Taking Business in Private

Meeting date: 21 May 2025

Richard Leonard

Good morning. I welcome everyone to the 16th meeting in 2025 of the Public Audit Committee. Agenda item 1 is for the committee to decide whether to take agenda items 3, 4 and 5 in private. Do we agree to do so?

Members indicated agreement.

Public Audit Committee [Draft]

Scottish Government Strategic Commercial Assets Division

Meeting date: 21 May 2025

Richard Leonard

Agenda item 2 is consideration of the Scottish Government’s approach to financial interventions, in particular the strategic commercial assets division and its work. I am very pleased to welcome Gregor Irwin, who is the director general of economy at the Scottish Government, Colin Cook, who is the Scottish Government’s director of economic development, and Dermot Rhatigan, who is a deputy director and the lead on the strategic commercial assets division. We have some questions to put to you this morning but, before we get to them, I invite you, director general, to make an opening statement.

Public Audit Committee [Draft]

Scottish Government Strategic Commercial Assets Division

Meeting date: 21 May 2025

Richard Leonard

The default position of the contract with FMI was secrecy, was it not? There are two paragraphs about that in the letter that you wrote to me on 4 April. The first talks about how

“all information will be treated as commercial in confidence by the parties.”

That was the condition of your contractual arrangement with FMI. The second states:

“In addition, FMI applied a disclaimer to the report which requires their consent for the report, or information contained within the report, to be shared beyond the parties to the contract.”

Public Audit Committee [Draft]

Scottish Government Strategic Commercial Assets Division

Meeting date: 21 May 2025

Richard Leonard

Do those consultants have any exposure to risk themselves or do they just get a reward from those exercises? If things have not gone well—clearly, they have not gone that well at FMPG—does FMI assume any responsibility?

Public Audit Committee [Draft]

Scottish Government Strategic Commercial Assets Division

Meeting date: 21 May 2025

Richard Leonard

As the saying goes, the proof of the pudding will be in the eating.

I want to tie up a few loose ends before we finish the evidence session. First, on that last point, why on earth are there any commercial confidentiality issues around the terms of reference for the study by FMI?

Public Audit Committee [Draft]

Scottish Government Strategic Commercial Assets Division

Meeting date: 21 May 2025

Richard Leonard

The Public Audit Committee deals with optimism bias a lot of the time, but, this morning, I think that we are experiencing some pessimism bias. I do not think that it is unreasonable to expect that the objective terms of reference of a piece of work that has been commissioned by the Scottish Government should be in the public domain.

Public Audit Committee [Draft]

Scottish Government Strategic Commercial Assets Division

Meeting date: 21 May 2025

Richard Leonard

Again, we will view that in light of future experience.

I turn to the other issue that we have been looking at this morning, but have not significantly dwelt on. Again, I just want to run through this as a matter of record. One of the pieces of information that you disclosed to us in February, which was quite transparent and open of you, was the EY study into BiFab. At the end of that report, EY made a series of recommendations to the Scottish Government about how it might improve things in future cases.

As we have touched on already, the report spoke about identifying

“key sectors ... of strategic importance”

that the Government ought to identify. It also said that

“SCAD should ... engage with public sector agencies”.

We have heard a little about how that goes on, although I would be interested to know whether the Scottish National Investment Bank is part of that engagement process.

I turn to three particular recommendations in that report, and I will ask you, director general, whether you have implemented those recommendations.

One was a recommendation that the Scottish Government

“should establish a standardised triage process for intervention requests”

in order to establish a “go/no-go” decision framework. Have you done that?

Public Audit Committee [Draft]

Scottish Government Strategic Commercial Assets Division

Meeting date: 21 May 2025

Richard Leonard

I mean the other shipyards that are potentially in competition with Ferguson Marine for some of those contracts, for example. Is there a disclosure clause that means that you understand who else is a part of its client base, to ensure that there is no conflict of interest, for example?