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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 14 August 2025
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Displaying 2597 contributions

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Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 9 June 2022

Colin Beattie

I mean FMEL.

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 9 June 2022

Colin Beattie

When CMAL escalated an issue to the PSG, was that a bit of a waste of time, then?

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 9 June 2022

Colin Beattie

The PSG was chaired by Transport Scotland—in effect, Transport Scotland owned that group. It is unclear to me how Transport Scotland’s responsibility to advise ministers in any formal way is established—between the PSG, which it chairs, and the Scottish ministers. I say again that the Auditor General indicated that ministers were updated on issues only on an ad hoc basis. When Transport Scotland formally advised Scottish ministers in February 2017, target dates and milestones had already been missed.

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 9 June 2022

Colin Beattie

Was the belief that the alternative methods of dispute resolution were inappropriate and could not be implemented?

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 9 June 2022

Colin Beattie

Perhaps that is something that can be followed up.

Let us get to the interesting bit: £128.25 million of public money was paid into FMEL, in one way or another. When FMEL went into administration and was nationalised, there was basically nothing there—a few million quid’s worth of unfinished ships and some bits of metal about the yard. What happened to all that money?

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 9 June 2022

Colin Beattie

I accept the differential between the two types of payment. However, it is fair to conflate them as money that went into the company. It received tens of millions of pounds of public money. What was that spent on, given the fact that the vessels were so incomplete? Where did the money go? At times, apparently—according to some of the bits and pieces of the Auditor General’s report that I have been looking at—only a handful of people were working on the ships, so, for much of the time, it certainly did not go on payroll. Where did the money go?

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 9 June 2022

Colin Beattie

I will move on to different ground. As you might be aware, throughout these evidence sessions, the one thing that has concerned me is the money—we need to follow the money. I have two questions to ask, but I will come back to that principle.

Looking at the way in which the project was set up, I think that there were clearly weaknesses in the project governance. For example, the programme steering group, which was chaired by Transport Scotland, did not really have a clear role, yet CMAL was bringing issues to it, although we do not know where they went. What improvements have been made since then? The issues with governance clearly led to failures in the relationships and possibly in the project itself.

What improvements have you made for future new vessels to ensure that the process is much more tightly controlled and managed, and that the governance issues do not recur?

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 9 June 2022

Colin Beattie

All that information would have come to PwC from the same company that was optimistically saying that everything was going to be okay.

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 9 June 2022

Colin Beattie

So what was the point of the PSG?