The Official Report is a written record of public meetings of the Parliament and committees.
All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
All Official Reports of public meetings of committees.
Displaying 1194 contributions
Public Audit Committee
Meeting date: 22 June 2023
Neil Gray
No. That decision was taken by me and Gregor Irwin.
Public Audit Committee
Meeting date: 22 June 2023
Neil Gray
That decision was taken first of all by the director general, and I was asked to confirm it, and so I confirmed that that was the appropriate action to take.
Public Audit Committee
Meeting date: 22 June 2023
Neil Gray
Again, I would not want to put words in Mr Irwin’s mouth, but it was not his advice not to proceed, as Mr Hoy has perhaps suggested, although I might be wrong in that regard. It was rather that Mr Irwin wanted my authority to proceed, knowing that there was not a narrow value-for-money case for vessel 802.
I think that Mr Hoy wants to establish that we have brought the required rigour to ensuring that we spend taxpayers’ money appropriately. The Teneo report gives us a significant amount of information, but we also have our assessments of the work that is on-going at the yard. We know the impact that delaying any further would have on island communities and the impact that putting the future of the yard in jeopardy would have on the local economy in Inverclyde and the workforce at the yard. Another important consideration is the need to ensure the best possible future for commercial shipbuilding in Scotland.
Those were all important considerations, as colleagues have acknowledged, and that is why I gave written authority in this case.
Public Audit Committee
Meeting date: 22 June 2023
Neil Gray
In the written authority process, a minister does not seek to intervene in order to override a decision with written authority. Rather, an accountable officer—in this case, it was the director general, Mr Irwin—concludes through the green book analysis under the Scottish public finance manual that the value-for-money test or one of the two other elements of the accountable officer process has not been met. He or she then has to seek the authority of the minister—in this case, it is me—to proceed with the work.
There have been cases at the United Kingdom Government level in which ministers have sought to override advice from officials. In this case, however, Mr Irwin concluded that, on the narrow value-for-money assessment, he could not conclude that the work represented value for money, which is one of the three elements that he has to consider. He therefore sought my authority to proceed and I gave it, given the wider considerations that I had to take into account.
Public Audit Committee
Meeting date: 22 June 2023
Neil Gray
If I, personally, did something that put at risk the delivery of a Government agenda, of course I would consider my position. However, in this case, the issues that we are talking about, particularly in more recent times, have not been due to ministers or Government issues. As I said in my previous answer, we are facing incredibly turbulent economic factors that are driving supply chain constraints and cost increases, not just for parts but also for labour. As a result, the situation is incredibly unpredictable. Mr Hoy is well aware of the economic situation that the UK faces, and the impact that that has on public contracts is obvious.
I therefore cannot foresee a circumstance where this would be something that I would resign over unless I had done something directly, myself, that had caused any issues. So far, I do not think that that has been the case, Mr Hoy.
Public Audit Committee
Meeting date: 22 June 2023
Neil Gray
The Government has been very clear about our view of performance-related bonuses. They are contractual obligations, and I am sure that colleagues on the committee would not wish us to be seen to be breaking contractual law, but we have made very clear to the yard our displeasure at there having been bonuses and at any likelihood of any future bonuses.
A process is on-going as to whether the contracts can be renegotiated in order to see those removed. I hope that that can be the case, because I share the upset and anger of colleagues on the committee, colleagues in Parliament and people in Scotland around those bonuses being paid when there has been such delay and there have been such cost overruns with the project.
Public Audit Committee
Meeting date: 22 June 2023
Neil Gray
The figure that is in the public domain is £105 million to complete it, which is part of the overall cost of £202 million to complete it from when the yard was nationalised.
Public Audit Committee
Meeting date: 22 June 2023
Neil Gray
No. That is the total cost from when the yard was nationalised.
Public Audit Committee
Meeting date: 22 June 2023
Neil Gray
How much has still to be spent, from today?
Public Audit Committee
Meeting date: 22 June 2023
Neil Gray
I would need to come back to you in writing with that figure in light of the estimate that the chief executive issued last September.