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Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 24 August 2025
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Displaying 1071 contributions

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Public Audit Committee

Written Authority: Completion of Vessel 802

Meeting date: 22 June 2023

Neil Gray

My predecessors in my portfolio, transport portfolios and others have made themselves more than available in the inquiry that has been conducted in this case. They can, obviously, speak for themselves on the decisions that they have taken. However, my overriding concern is to ensure that we complete the vessels as quickly, timeously and cost effectively as possible. That is what island communities deserve and it is one of the most important elements in my portfolio. I will keep pushing as hard as possible to ensure the timeous and cost-effective delivery of the vessels.

Public Audit Committee

Written Authority: Completion of Vessel 802

Meeting date: 22 June 2023

Neil Gray

Hmm.

Public Audit Committee

Written Authority: Completion of Vessel 802

Meeting date: 22 June 2023

Neil Gray

I have set out why I cannot publish it. There will be a debate about that—and you, convener, will perhaps hold a different view on it than I do—but I am not willing to put the yard at a competitive disadvantage or jeopardise its ability to compete for future orders.

The work that Teneo did went into a substantial amount of detail. It worked with the yard to ensure that all potential permutations on risks to the contract were considered, particularly on 802. It was able to give advice off the back of that. The work involved more than just looking at numbers on a spreadsheet or comparing costs; it examined the processes that are in place at the yard. It is well recognised that Teneo is an international expert in the field, and the advice that it has provided has given me assurance that I was able to take the correct decision in issuing written authority to see the completion of 801 and 802.

Public Audit Committee

Written Authority: Completion of Vessel 802

Meeting date: 22 June 2023

Neil Gray

No; I did not. That was a collective decision taken in the Government. Gregor Irwin suggested that it was the right—

Public Audit Committee

Written Authority: Completion of Vessel 802

Meeting date: 22 June 2023

Neil Gray

The narrow value-for-money case that I describe is in the direct comparison between completing vessel 802 and procuring elsewhere, with elements of economic consideration being part of that. In his letter to the convener and to me, Gregor Irwin sets out some of the uncertainty that there is within the market. The cost comparison meant that, in the value-for-money assessment that he has to carry out as an accountable officer, he was not able to conclude with confidence that there was a value-for-money case for completing vessel 802 at the yard.

The consideration that I feel that I am duty bound to take is much wider. It includes the cost to the islanders of a further delay in the vessels. We already know that our island communities have suffered significant disruption. As somebody who was born and brought up on an island, I know how difficult a time people in the islands will have been having, so I am acutely aware of the need to deliver the vessels as quickly as possible. That was at the forefront of my consideration.

Alongside that, there is also the consideration of the future of the yard. The narrow value-for-money assessment is neutral on whether the future of the yard rests on vessel 802 being completed at Ferguson’s or procured elsewhere. I felt duty bound not to consider that neutrally because I felt that, if vessel 802 was not completed at the yard, it would have been put at risk. That was part of my consideration, along with the workforce and the contribution that the yard makes to the local economy. I have heard directly from like likes of Stuart McMillan and Ronnie Cowan about their experience in the local community and about the discussions that they have with those from local businesses, who told them that, without the economic contribution that the yard makes, their businesses would not be viable.

I have to make a wider consideration that goes beyond what has been described as the narrow assessment, which is about the cost to complete at the yard versus reprocuring elsewhere and also elements of economic consideration beyond that. What I have to consider goes much wider, and that is why I made the decision that I did.

Public Audit Committee

Written Authority: Completion of Vessel 802

Meeting date: 22 June 2023

Neil Gray

Yes, I requested access to it to ensure that I was fully informed about the work that had been undertaken and to ensure that I was confident that it was a robust assessment of the costs and that the value-for-money assessment was robust and accurate. However, I stress again that that is a relatively narrow value-for-money assessment that does not take into account the wider considerations that I must take into account, as a minister, including the delay for island communities and the future of the yard, the workforce and the local economy in Inverclyde.

Public Audit Committee

Written Authority: Completion of Vessel 802

Meeting date: 22 June 2023

Neil Gray

Yes.

Public Audit Committee

Written Authority: Completion of Vessel 802

Meeting date: 22 June 2023

Neil Gray

A decision was taken in the Government, jointly by officials and ministers, that the commercial sensitivity of that information meant that it would not be appropriate to release the report. There is nothing in it to hide. There is no issue with the numbers—that is not the problem. The problem is the commercial sensitivity of the report and the fact that that report is the intellectual property of Teneo. That makes it difficult for us to release it. We do not want to put the competitiveness of the yard at risk. I think that you alluded to that, yourself, convener, in your letter. However, to put that in the public domain absolutely would put the competitiveness of the yard at risk and jeopardise its future.

Public Audit Committee

Written Authority: Completion of Vessel 802

Meeting date: 22 June 2023

Neil Gray

I am happy to provide the full timeline of events in writing to ensure that I get the exact dates. The process that was undertaken led to the decision being taken on 14 May, when I gave the written authority. I was before Parliament on 16 May to ensure that I was informing it at the earliest possible opportunity, holding myself accountable to colleagues for the fact that I had taken that decision. I have a full list of the dates that run up to the decision, which I am happy to provide in writing so that the committee can see them.

Public Audit Committee

Written Authority: Completion of Vessel 802

Meeting date: 22 June 2023

Neil Gray

It has been acknowledged by the committee that we proactively released and published more than 200 documents on the Government’s website in relation to the on-going process at Ferguson’s. We have offered ourselves—Gregor Irwin has been before the committee, and I, as cabinet secretary, and Mr Cook and Ms Hall are here today—and we have published as much as we can without putting the yard at a competitive disadvantage. We are going as far as we can to be transparent and to let people understand the decisions that we are taking and why we are taking them.