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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. Session 6: 13 May 2021 to 8 April 2026
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Displaying 2137 contributions

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Public Audit Committee

Section 22 Report: “The 2024/25 audit of the Scottish Government Consolidated Accounts”

Meeting date: 17 December 2025

Jamie Greene

What I am asking, I suppose, is that if this business were to be sold as a going concern by the Scottish Government to a private company, what would its value be? If I came along and said, “Right, I want to buy Ferguson Marine off you, what is the value of the business?”, would I be looking at £99 million or is there another figure?

Public Audit Committee

Section 22 Report: “The 2024/25 audit of the Scottish Government Consolidated Accounts”

Meeting date: 17 December 2025

Jamie Greene

We have to assume, therefore, that once those projects are complete and the Glen Rosa has set sail and been handed over to its client, that will come off the balance sheet of the business. Essentially, it will just be a going concern without the CMAL contracts.

Public Audit Committee

Section 22 Report: “The 2024/25 audit of the Scottish Government Consolidated Accounts”

Meeting date: 17 December 2025

Jamie Greene

Okay. I will move on—I am sorry that I took so much time on Ferguson and Glen Rosa, but it is an important area for the committee.

I will move on to the bigger picture around Scotland’s fiscal position and pick up some of what you said in your report and in your opening statement. As you mentioned, the Scottish Government has a requirement, essentially, to break even each year, but you talked a little with the convener about the £1 billion underspend. Is my assertion correct that that was made possible only because of consequentials of around £2.2 billion that arrived in-year from the UK Government? Therefore, is it safe to assume that, if £2.2 billion of consequentials arrived in the Scottish budget in-year and there was an underspend of £1 billion, about £1 billion of the consequentials was spent. Is that correct?

Public Audit Committee

Section 22 Report: “The 2024/25 audit of the Scottish Government Consolidated Accounts”

Meeting date: 17 December 2025

Jamie Greene

Good morning. I will carry on where the convener left off with questions about the strategic commercial assets. It will not be a huge surprise that I would like to talk about Ferguson Marine and the Glen Rosa, which features heavily in your report.

First, in exhibit 1 on page 7, you talk about the total financial investment by the Scottish Government into the yard, and its relative value. Can you just talk me through that? You say that £360 million was invested but the current value in the accounts is around £100 million. I suspect many people looking on from the outside into that business will wonder how on earth it could be valued at £100 million.

10:00  

Public Audit Committee

Section 22 Report: “The 2024/25 audit of the Scottish Government Consolidated Accounts”

Meeting date: 17 December 2025

Jamie Greene

Could you explain what you mean by the following comment, which appears in bold on page 16 of your report:

“The Medium-Term Financial Strategy highlights the unsustainable financial position of the Scottish public sector”?

That is a bold and sweeping statement. What do you mean by that?

Public Audit Committee

Section 22 Report: “The 2024/25 audit of the Scottish Government Consolidated Accounts”

Meeting date: 17 December 2025

Jamie Greene

That is interesting. In other words, the way out of that hole is to spend less or raise more money. Is that correct?

Meeting of the Commission

Audit Scotland Budget Proposal 2026-27

Meeting date: 11 December 2025

Jamie Greene

Indeed.

The total cost of the upgrade has not changed much since we last spoke about it. It is around £2.2 million. My primary concern is that you have not negotiated a price for the product, yet you are still quite confident about how much it will cost. How does that work?

Meeting of the Commission

Audit Scotland Budget Proposal 2026-27

Meeting date: 11 December 2025

Jamie Greene

Does that account for your legal and professional fees jumping by a third, year on year?

Meeting of the Commission

Audit Scotland Budget Proposal 2026-27

Meeting date: 11 December 2025

Jamie Greene

Oh, I see. So, just for clarification, it is already in the £15.8 million figure, not on top of it. If it is in that line, it will have appeared—

Meeting of the Commission

Audit Scotland Budget Proposal 2026-27

Meeting date: 11 December 2025

Jamie Greene

I am not suggesting that it had been—I just wanted to clarify where it sat.

My big issue with this is that I have yet to see a public body that has delivered a massive information technology infrastructure upgrade on time and on budget. If Audit Scotland cannot do it, nobody can, so I appreciate that there is a huge amount of pressure on you to deliver.

Of course, the figure is just the implementation cost—that is, the cost of getting the product live. What is really unclear is what the on-going costs might be down the line. I appreciate that that is not relevant to next year’s budget, because the project is not going live next year, but it will be a matter of concern to the commission in the future. What scale do you have in mind for that?