Ferguson Marine: Deputy First Minister's statement - 3 February 2026

Presiding Officer, I welcome the opportunity to update Parliament on Ferguson Marine.

My statement builds upon the statement of the Cabinet Secretary for Transport and set out clearly the Scottish Government’s commitment to doing all that we can to secure the yard’s long-term future.

Ferguson Marine is the last commercial shipyard on the Clyde. It supports skilled employment in Inverclyde and it plays an important role in Scotland’s wider industrial capability.

In 2019, the Government brought the yard into public ownership to safeguard jobs and shipbuilding skills, and to complete the Glen Sannox and Glen Rosa. Now, our priority is to secure a sustainable future for the yard, with clear work, improved delivery confidence, and a modernised facility.

Progress on current vessels is important context for the decision that I'm going to set out. MV Glen Sannox has now completed her first year in service and MV Glen Rosa continues to progress, with delivery anticipated in the fourth quarter of 2026.

I recognise the frustration felt by Parliament, by island communities and by the workforce due to the delays and cost pressures associated with the Glen Sannox and the Glen Rosa.

I also recognise the impact on those affected, particularly island communities who rely on the ferries for work, family life and essential services. Their frustrations are justified and I understand the strength of feeling.

Delivery challenges have rightly led to scrutiny of the yard’s performance and of past decisions. That scrutiny is both necessary and appropriate – but it’s also a catalyst for change.

As the Glen Rosa build enters its latter stages, we also need to address the longer-term future of the shipyard.  

A new senior leadership team is in place, with stronger commercial disciplines, clearer accountability and improved assurance reporting. Oversight has been strengthened and governance arrangements have been tightened.

The annual accounts for 2024/25, and Audit Scotland’s accompanying report, were published in December. Taken together, they demonstrate measurable improvement in governance and controls compared with previous years.

These arrangements are designed to support better planning, firmer cost control and more consistent delivery.

And so Presiding Officer, it is on that strengthened foundation that I am now able to set out the next steps.

Securing the long-term future of the yard requires a clear and credible pipeline of work.

The Cabinet Secretary for Transport set out in her statement that the Scottish Government proposes to directly award the contracts for two ferries under Phase Two of the Small Vessel Replacement Programme to Ferguson Marine.

But in addition, I can also announce that Ministers propose to award contracts for a further two vessels to Ferguson Marine: replacements for the marine research vessel ‘Scotia’ and the marine protection vessel ‘Minna’.

Together that represents a programme of four new vessels proposed to be built at the yard. This is a substantial and clear demonstration of our confidence in Ferguson Marine.

Ministers must of course ensure that public contracts are awarded in accordance with legal requirements and demonstrate value for communities and the taxpayer.  A detailed due diligence process is underway within the Scottish Government to closely assess the viability and implications of these proposals. Engagement with the Competition and Markets Authority is also among the steps that are required before any formal contract award decisions can be made. 

Presiding Officer, it is important to be clear why these vessels are a strong fit for the yard, and why we have confidence in Ferguson Marine to build them.

First, these vessels of a scale and technical profile that match the yard’s facilities and workforce capability. The proposals are supported by strengthened governance and assurance so that progress, costs and risks would be properly managed throughout delivery.

Secondly, there is continuity of experience. In several cases, these new vessels replace vessels previously built at the yard, building on knowledge of similar vessel types and public service requirements.

Thirdly, the proposed programme supports steady delivery. A pipeline of vessels allows the workforce to move from project to project and support investment in training, apprenticeships and productivity.

Presiding Officer, this proposed programme is intended as a bridge to the future, but it is not the limit of our ambition for Ferguson Marine.

A sustainable shipyard must be able to win and deliver work beyond a single customer. Ministers intend to return the business to the private sector when the time is right. The proposed programme would provide a stable baseline allowing the yard to plan its workforce, strengthen its supply chain and invest in improved ways of working. It would also provide the yard with an opportunity to re-establish itself as a credible, competitive shipbuilder by demonstrating consistent delivery, controlling costs and delivering vessels that perform in service.

The proposed four-vessel programme would form the core of the yard’s workload over the next five years. Alongside that, the yard would continue to have capacity to take on other commercial work, where it can be planned and delivered without compromising the delivery of these public service vessels.

Presiding Officer, I have previously announced a commitment of up to £14.2 million over two years to support the modernisation of Ferguson Marine, again subject to due diligence in advance of formal investment decision-making.

In the current financial year, interim investment has focused on essential repairs, health and safety improvements and targeted equipment upgrades. Those measures were necessary to stabilise operations and support delivery of MV Glen Rosa, but they were not transformational.

Further modernisation needs to be aligned with the needs of the proposed vessel delivery programme, so that investment supports efficient production and improved productivity.

Our proposal to progress with four new directly awarded vessels provides the clarity needed to plan modernisation properly. We are working with the yard to optimise sequencing, and to develop an updated business plan.

That business plan will require to undergo legal, commercial and subsidy control assessments before formal decisions can be made on contract awards.

But by linking workload to modernisation and governance, the yard would upgrade infrastructure, improve productivity and streamline production practices while vessel projects are underway.

That approach provides continuity for the workforce, stability for the supply chain and a stronger foundation for a competitive and sustainable future.

These substantial proposals we are announcing today would deliver for Ferguson Marine, for island communities and for Inverclyde.

We are strengthening ferry resilience and connectivity for communities that rely on dependable services.

At the same time, our plans for new vessel awards would support skilled employment and industrial capability in Inverclyde, where Ferguson Marine remains an essential part of the local economy and a shipyard of national industrial importance.

I have talked about investment in the yard and in new vessels but I want to place on record my sincere thanks to the workforce at Ferguson Marine.

Through a prolonged period of challenge, scrutiny and uncertainty, they have continued to demonstrate professionalism, resilience and a deep commitment to their craft.

Shipbuilding is highly skilled and demanding work. It requires precision, teamwork and pride in delivery. Despite the pressures surrounding recent projects, the workforce has remained focused on completing complex vessels to a high standard and on maintaining the yard’s reputation for engineering expertise.

I also recognise that uncertainty affects not only those employed at the yard, but their families as well. Stability and clarity matter deeply to the people whose livelihoods depend on Ferguson Marine and I acknowledge the constructive role of trade unions in supporting stability, reform and improvement. Their engagement is important in helping to steer the yard through difficult times and towards a more secure future.

I spoke with Alex Logan and Kenny Meechan of GMB again this morning and they stressed the need to retain the young workforce at Ferguson Marine.

In conclusion, Presiding Officer, my statement makes clear that the Scottish Government is committed to doing all that we can to secure a competitive, productive and sustainable future for Ferguson Marine.

With our proposal to award a four-vessel programme to the yard, we are setting a clear ambition for Ferguson Marine’s future – one built on shipbuilding confidence, capability and continuity. We rescued Ferguson Marine for a purpose and we are determined to see it succeed. Thank you.