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Displaying 2524 contributions
Public Audit Committee
Meeting date: 16 January 2025
Stuart McMillan
I have a couple of very brief questions on some issues that came up earlier, to get a bit of clarity. In your main report, which was published in October, at paragraph 25 on page 15, you touch on
“the loss on BAE contracts”.
Bearing in mind the earlier questions from Jamie Greene regarding the future and the business plan for the yard, I would assume that there would be further contracts included in that. Can you tell the committee what the financial loss was on the BAE contracts in the past?
Public Audit Committee
Meeting date: 16 January 2025
Stuart McMillan
It is about contractors—not so much the individuals concerned, but the subcontractor organisations. Did the chief financial officer’s review that we have just discussed include the subcontracts for the various suppliers that came in to do work?
Public Audit Committee
Meeting date: 16 January 2025
Stuart McMillan
Okay. I am sure that I will have the opportunity to take that point further in the future. Thank you for answering my questions on those areas.
I have some questions about public sector pay policy and exit packages. Colin Beattie asked about the previous chief executive’s exit package. As the section 22 report touches on, there were a couple of pay-offs that did not go through the correct procedures.
The report says that, although
“FMPG is not required to comply with public sector pay and conditions”,
there is an expectation that it
“will align with the principles of public sector pay policy.”
Can you provide further detail on what the implications are if FMPG does not ensure that it is complying with the framework agreement and the relevant sections of the SPFM?
Public Audit Committee
Meeting date: 16 January 2025
Stuart McMillan
Did Ferguson’s seek approval from the Scottish Government?
Public Audit Committee
Meeting date: 16 January 2025
Stuart McMillan
I probably know the answer to my next question. In undertaking your audit work, you will be in the office at the yard to look at the facts and figures and at the information that is presented. Do you ever go to talk to the folk on the shop floor to gain knowledge and understanding from them, too?
Public Audit Committee
Meeting date: 16 January 2025
Stuart McMillan
That is helpful. We have discussed the requirements of the Scottish public finance manual, the £95,000 threshold and the internal mechanisms at the yard. Were the settlement agreements for the 21 individuals who left in 2023-24 all signed off by the board or would that have been an operational matter?
Public Audit Committee
Meeting date: 16 January 2025
Stuart McMillan
Clearly, you will know the quantum for each of the two packages that the Scottish Government did not provide the guarantee for. Can you share that information with the committee?
Public Audit Committee
Meeting date: 16 January 2025
Stuart McMillan
Are you content with the work that has been undertaken in that regard, and in particular that on the larger contract organisations?
Public Audit Committee
Meeting date: 16 January 2025
Stuart McMillan
I do not think that that actually answers the question. I am looking for a specific figure with regard to the financial loss that the yard had to deal with because of the work that it undertook for BAE.
Public Audit Committee
Meeting date: 16 January 2025
Stuart McMillan
That is fine.
My second brief question is in relation to Colin Beattie’s questions on board meetings and governance. The board meets only six times a year. Bearing in mind the challenges that have been well documented by you and others, is six times a year enough for a board to get on top of all the challenges and risks that it faces?