Recruitment of Ferguson Marine Turnaround Director: FOI release

Information requested

1. How were the six candidates for the position of Ferguson Marine Turnaround Director identified?

2. What criteria was used to shortlist the candidates from six to three?

3. Please explain Tim Hair’s previous marine engineering experience, what period this covered and why it was specifically relevant to shipbuilding and Ferguson Marine?

4. Does Tim Hair continue to be employed as a non-executive Chairman of South Wales Industrial Valves Services Ltd and a Director of Melville Management? If so, how many days per month does Tim Hair commit to these roles on top of his employment as Turnaround Director at Ferguson Marine?

5. Why were references taken from Non-Executive Directors and not Executive Directors?

6. With regards to endorsing Tim Hair’s appointment, did Price Waterhouse Cooper confirm that they had direct experience of working with Tim Hair in any previous roles as a Turnaround Director?

7. Have PWC worked with Tim Hair before and were they approached for a reference?

8. How many occasions has Tim Hair worked more than four days each week as Turnaround Director at Ferguson Marine?

9. Can you please provide a breakdown of how the £61,861 expenses was spent, including categories on accommodation and travel expenditure?

10. Can you please explain what the sums listed as “fees” relate to and how they fit within the invoices and expenses?

11. Some of the invoices indicate nearly a daily rate of around £4,000 per day (July 2021) and other invoices indicate a daily rate of around £2400 (Sept 2020) per day. What are the reasons for these differences?

12. Is the Scottish Government liable to VAT on top of the daily rate?

13. How is Tim Hair’s time invoiced and who are those invoices made out to?

14. What was the basis for the recalculation of the daily rate fee which came into effect on 1 March 2020?

15. Have the pay arrangements been agreed with Inland Revenue so that the fees are not caught by IR35 which would make Tim Hair an employee?

16. Please can you provide a general indication of how many days per week Tim Hair works on site at Ferguson Shipyard?

17. Were Price Waterhouse Cooper aware that a recruitment consultant had not been used in this appointment and, therefore, that the salary would not be subject to deductions when they provided advice on the daily rate for Tim Hair?

18. Can you confirm if the Inland Revenue currently consider Tim Hair’s employment status as a temporary contractor and not a full-time employee with benefits?

19. Following the departure of Derek Mackay as Cabinet Secretary for Finance, which Scottish Government minister is responsible for overseeing Tim Hair’s contract with Ferguson Marine?

20. Which Scottish Government ministers or officials within Transport Scotland and CMAL have overall responsibility for the output and performance of Tim Hair as Turnaround Director at Ferguson Marine?

21. Who prepared the Annex for FOI 202100223540?

Response

1. PWC were asked to identify suitable individuals with experience of Turnaround in similar or comparable industries. They used their database of individuals who carry out this kind of work and shortlisted those with the relevant experience.

2. This was based on their level of expertise related to the business. For example their experience of turning around engineering businesses and resetting relationships with customers. The availability of candidates was also important as some were in existing roles and would not be able to start promptly.

3. P&O Princess Cruises – Marine Engineer, 1978 to 1988.
Member, Institute of Marine Engineering Science & Technology

Tim has significant experience in the engineering and automotive sectors, has led a number of business turnarounds and transformations and is a member of the Institute of Turnaround. The primary requirement when recruiting the Turnaround Director was experience of turning around engineering businesses with an emphasis on a collaborative approach to re-set the relationship with customers and Tim Hair was selected on this basis.

4. According to publically available information on Companies House, Tim Hair is currently an active Director at South Wales Industrial Valves Services Ltd (Company number 01582669) and Melville Management Limited (Company number 09311820).

In regard to Tim Hair’s other roles, we do not hold the information that you have requested. This is a formal notice under section 17(1) of FOISA that the Scottish Government does not have the information you have requested.

5. It is for candidates to identify suitable references. It is normal practice when taking up references on a Chief Executive for Non-executives to be identified.

6. PWC completed a background check on Tim Hair which raised no concerns and he has been known to PWC Partners in England for over 10 years.

7. PWC were not approached for a reference.

8. The Turnaround Director’s contract has been managed by Ferguson Marine’s Board of Directors since August 2020. Therefore the Scottish Government does not hold the most up to date information. For the latest information on this matter I would advise that you contact Ferguson Marine directly.

We do not hold the information that you have requested. This is a formal notice under section 17(1) of FOISA that the Scottish Government does not have the information you have requested.

9. The Turnaround Director’s contract, including expenses has been managed by Ferguson Marine’s Board of Directors since August 2020. Therefore the Scottish Government does not hold the most up to date information. For the latest information on this matter I would advise that you contact Ferguson Marine directly.

We do not hold the information that you have requested. This is a formal notice under section 17(1) of FOISA that the Scottish Government does not have the information you have requested.

The Turnaround Director’s current contract is managed by the Ferguson Marine Board of Directors. However I attach a more detailed analysis of the Turnaround Directors remuneration up to July 2021 at Annex B.

11. The Turnaround Director’s current contract is managed by the Ferguson Marine Board of Directors. We understand these differences relate to the retention, and then payment, of a percentage of the Turnaround Director’s day rate as a retention incentive under the terms of his contract.

12. The Turnaround Director’s contract is with Ferguson Marine, not with the Scottish Government. The Scottish Government is not liable for VAT in respect of the Turnaround Director’s contract.

13. We understand that, under the terms of his current contract, invoices are addressed to Ferguson Marine, from Melville Management. Scottish Government is not a party to these invoices.

14. The Turnaround Directors contract has been renegotiated twice since he has been in post. In February 2020, the contract was renewed with a reduction in the day rate. There was also a retention arrangement put in place whereby 10% of each month’s fees was accrued to be invoiced at the end of December 2020.

15. The Turnaround Director’s contract is with Ferguson Marine, not with the Scottish Government. For further information on this matter, please contact Ferguson Marine.

16. The Turnaround Director’s current contract is managed by the Ferguson Marine Board of Directors. We understand Tim Hair is usually on site a minimum of 4 days per week.

17. The Scottish Government do not hold information on what information PWC took into account in framing their commercial advice.

We do not hold the information that you have requested. This is a formal notice under section 17(1) of FOISA that the Scottish Government does not have the information you have requested.

18. The Turnaround Director’s current contract is managed by the Ferguson Marine Board of Directors. Scottish Government does not hold this information.

We do not hold the information that you have requested. This is a formal notice under section 17(1) of FOISA that the Scottish Government does not have the information you have requested.

19. The Chairman of the Ferguson Marine Board of Directors has been responsible for Tim Hair’s contract since August 2020. Kate Forbes, Cabinet Secretary for Finance and Economy is the Scottish Government Minister responsible for Ferguson Marine.

20. The Turnaround Director’s performance and output are monitored on an ongoing basis by the Non-Executive Directors of the Board of Ferguson Marine with feedback as and when required advised via the Chairman. The Turnaround Director and Chairman meet once per week as a minimum. Monthly progress reports are sent to the Scottish Government, and shared with CMAL.

21. The annex was prepared by Ferguson Marine.

The reasons why we don’t have some of the information you have requested are explained in the Annex A.

About FOI
The Scottish Government is committed to publishing all information released in response to Freedom of Information requests. View all FOI responses at http://www.gov.scot/foi-responses.

FOI202100231869 - Annex A and B

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