Fuller review into ferries deal needed, MSPs told

Scotland’s Auditor General has called for a wider review of the construction of two new controversial ferries on the Clyde.

Stephen Boyle told a Holyrood committee that it would be too “commonplace” to say lessons could be learned from shortcomings encountered in its construction.

The ferries are years late and two and a half times over budget.

Mr Boyle also expressed frustration at a lack of government documentation on the contracts.

Last month, an investigation by Audit Scotland found that the contract for the CalMac ferries was approved by ministers without normal financial backing.

It could not be determined why the £97m order to Port Glasgow-based Ferguson Marine shipyard was awarded without any such guarantees, as there was “insufficient documentary evidence”.

The ships, which are still being built at the Port Glasgow yard, will arrive five years late and could cost more than £250m.

The Glen Sannox and the as yet unnamed hull 802 are now expected to be completed between March and May 2023 and between October and December 2023 respectively.

Appearing before Holyrood’s public review board, Mr Boyle said: “There needs to be a wider review. The insights gained feel too slick to describe the circumstances before us, the circumstances that brought about a contract many years late, two and a half times the original budget, to determine how these are to be delivered going forward.

“We have not done so fully as … the project is still ongoing, but we share your concern that a more comprehensive review is needed.”

Mr Boyle also expressed frustration at the lack of documentation.

“We are clearly frustrated that we have not been able to review all of the relevant evidence,” he said.

“Our verdict is not that evidence was withheld from us in the course of our audit work, but that a key piece of evidence was not ready to arrive at the verdict that ministers have arrived at – to accept the level of risk so unusual of the magnitude of this contract and contrary to the recommendations of the public body (Caledonian Maritime Assets Limited) supervising the contract.”

He added: “I’m sure it’s an issue that the public service wants to think about, how best to document important decisions that significantly affect not only the use of public money, but also the delivery of vitally important aspects of public services .”

Audit Scotland’s report found that problems persisted following the Scottish Government’s nationalization of Ferguson shipyard in 2019.

It revealed that as late as January, 175 technical, safety or quality issues remained to be resolved – including some that could prevent regulators from issuing a passenger safety certificate.

Last month, MSPs were briefed on the project’s recent delays, which came after it was discovered that cables installed in a hull were too short to reach the equipment.

Treasury Secretary Kate Forbes also warned MSPs of the possibility that new problems could arise during the commissioning process, although she insisted the ships would be completed.

The committee’s convener, Richard Leonard, invited Mr Boyle to testify again next week before a decision is made on what next steps to take.

They could reportedly include a brief investigation into the scandal.