CMAL / Ferguson Marine queries: FOI release

Information requested

Please confirm the total funding that has been spent by the Scottish Government so far on the following:

1. Payments made to FMEL for construction of vessels 801 and 802 prior to the nationalisation of Ferguson Shipyard.
2. Scottish Government Loans provided to FMEL prior to nationalisation of Ferguson Shipyard.
3. The total costs to the Scottish Government associated with the nationalisation of Ferguson Shipyard.
4. The total additional costings for completing vessels 801 and 802, on top of what has already been paid to FMEL.
5. The total cost of all wages and fees of Tim Hair during his tenure as Turnaround Director.
6. The total Scottish Government grants all claimed by the nationalised Ferguson Shipyard since the beginning of the COVID-19 pandemic.
7. The total cost to the Scottish Government for PwC’s Project Poseidon report?
8. The total cost to the Scottish Government for Ernst and Young’s Project Neptune report?

Response

1. Payments made to Ferguson Marine Engineering Limited (FMEL) for the construction of vessels 801 and 802 prior to public ownership totalled £83.3 million.
   The Cabinet Secretary for Finance and Economy wrote to Parliament on 23 March 2022 providing a breakdown of the costs associated with the completion of vessels 801 and 802. A copy of the letter can be found on the Scottish Government website. Ferguson Marine: costs associated with the completion of vessels 801 and 802 - gov.scot (www.gov.scot)
2. The Scottish Government provided FMEL with two loans worth a total of £45 million.
   
   The first of these was a loan of £15 million to FMEL in September 2017, to aid cash flow for the vessels under construction and to allow the business to diversify. A second loan of £30 million was agreed in June 2018. The purpose of the loan was to fund FMEL to assist with cash flow and further assist diversification of the business.
3. We are responding on the basis that your query relates to the purchase of the business and certain assets of Ferguson Marine Engineering Limited (in Administration) by Ferguson Marine (Port Glasgow) Limited, a Company wholly owned by the Scottish Ministers, on 2 December 2019.
   
   With this purchase in mind, we have included a breakdown of the costs incurred by the Scottish Government in completing this transaction within Annex A of this letter.
4. The Cabinet Secretary for Finance and Economy wrote to Parliament on 23 March 2022 providing a breakdown of the costs associated with the completion of vessels 801 and 802. A copy of the letter can be found on the Scottish Government website. Ferguson Marine: costs associated with the completion of vessels 801 and 802 - gov.scot (www.gov.scot)
5. A summary of Tim Hairs remuneration for the duration of his post at Ferguson Marine accompanies this letter.
6. Ferguson Marine has not received any payments relating to COVID business support schemes. The costs of the COVID-19 pandemic were set-out in Ferguson Marine’s June 2021 Update on Progress and Impact of COVID-19 on Programme for Vessels 801 & 802 report. The net COVID-19 costs were set out as £4.1 million in this report.
7. The total cost of PwC’s Project Poseidon work can be found in the annex to FOI 202100262402 on the Scottish Government website - Consultancy fees paid to specific companies: FOI release - gov.scot (www.gov.scot)
8. The value of the contract was provided in the answers to the parliamentary questions S6W-02579 answered 30/08/2021 and S6W-06707 answered 08/03/2022.

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TMH Payments -12 April 22 - 202200291846

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1 page PDF

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98.1 kB

Annex A - 202200291846

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1 page PDF

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108.0 kB