Statement regarding loan to Ferguson Marine Engineering: FOI release

Information request and response under the Freedom of Information (Scotland) Act 2002.

FOI reference: FOI/18/02979  
Date received: 17 October 2018
Date responded: 12 November 2018
Information requested
To specifically and unconditionally ask the Cabinet Secretary for Finance and the Constitution, Derek Mackay MSP why, in his official statement on 27th June 2018 announcing the £30m loan to Ferguson Marine Engineering, that he failed to advise at the same time than an earlier loan facility of £15m had been made available with his formal approval on 7th September. 
A response to your question is attached.

The Cabinet Secretary for Finance, Economy and Fair Work wrote to the Convener of the Scottish Parliament’s Finance Committee to advise the Committee of the loan facilities provided to Ferguson Marine on 24 April and 27 June this year. The Finance Secretary was under no obligation to inform the Committee at that stage but he did so in the interests of transparency.

Scottish Government officials also advised Audit Scotland of the loan facilities. Expenditure under the agreements has been, and will be, recorded in the Scottish Government’s published Consolidated Accounts for the relevant financial year.

The commercial loan facilities agreed with FMEL are not identical. The second facility announced by the Finance Cabinet Secretary in June 2018 has a broader purpose that the first. In addition to providing general working capital, the second facility is designed to enable the shipyard to target investment in repair and maintenance capability and to win business opportunities in areas like ship servicing and repair, low carbon marine projects and decommissioning work. For these reasons, the Government and the business agreed to publicise the second facility in June 2018. 
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