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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 4 May 2021
  6. Current session: 13 May 2021 to 2 February 2026
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Displaying 3697 contributions

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Public Audit Committee

Section 22 Report: “The 2021/22 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 27 April 2023

Richard Leonard

Thank you. I will turn to a couple of areas. In paragraph 11 of your report—which, I think, is an amplification of a letter that the chief executive officer of FMPG that was sent to the convener of the Scottish Parliament’s Net Zero, Energy and Transport Committee—you highlight that the estimated costs for the Glen Sannox, or 801, are £101 million and that the estimated costs for 802 are £108.6 million. Why is 802 more expensive than 801?

Public Audit Committee

Section 22 Report: “The 2021/22 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 27 April 2023

Richard Leonard

That is fine. I suppose that the expectation would have been that the second vessel would benefit from lessons learned in the construction of the first vessel, which would lead to a reduction in the cost base.

Public Audit Committee

Section 22 Report: “The 2021/22 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 27 April 2023

Richard Leonard

I have a couple of questions about the wider business picture and the future of the yard. I think that I can speak for the committee as a whole in saying that we ask these questions because we want the yard to succeed and have a long-term future.

The present management team is involved in an arrangement with BAE Systems. From memory of what we heard when we visited the yard, that does not just involve sending FMPG employees down to the BAE Systems yards in Glasgow; it is also about work being brought from BAE Systems to be carried out in Port Glasgow. In the report that we have before us this morning, you say that some cash-flow issues arose from uncertainties about the financial arrangement between BAE Systems and FMPG. Could you elaborate a bit more on what those uncertainties are?

Public Audit Committee

Section 22 Report: “The 2021/22 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 27 April 2023

Richard Leonard

I was referring to the line in your report that states that FMPG considers there to be

“limited shipbuilding skills available in Scotland and that, to date, it has been unable to compete effectively with the private sector for skilled staff.”

Do you want to address that point?

Public Audit Committee

Section 22 Report: “The 2021/22 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 27 April 2023

Richard Leonard

Auditor General, you couched the situation in terms of there being a tension between the fact that Ferguson Marine is a company limited by guarantee and that some of its governance is dictated by the Scottish public finance manual. There was a report in a national newspaper today about the commissioning of some consultancy work to scope what needs to be put in place for the company to thrive in the future. The article suggests that the organisation that is carrying out that work—First Marine International—requested a non-disclosure agreement on its report. Initially, the Scottish Government said that there was no NDA, but it has now accepted that one is in place, and there is talk about commercial sensitivity.

We all understand that there will be some commercial sensitivity, but there is also a public interest, and there must be a way through that that would allow as much as possible of the report to be in the public domain and subject to scrutiny. Are you aware of that and do you have any reflections on it?

Public Audit Committee

Section 22 Report: “The 2021/22 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 27 April 2023

Richard Leonard

Thank you. That is a very clear message.

Craig Hoy wants to bring up further related matters.

Public Audit Committee

Decision on Taking Business in Private

Meeting date: 27 April 2023

Richard Leonard

We have received apologies from Colin Beattie. I welcome Bill Kidd to the committee.

Public Audit Committee

Section 22 Report: “The 2021/22 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 27 April 2023

Richard Leonard

We might return to some of those questions in the course of the next hour.

Sharon Dowey has a series of questions to put.

Public Audit Committee

Section 22 Report: “The 2021/22 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 27 April 2023

Richard Leonard

Our principal item of business is consideration of the 2021-22 audit of Ferguson Marine Port Glasgow (Holdings) Ltd. I am pleased to welcome our witnesses. The Auditor General, Stephen Boyle, is joined by Mark Taylor, who is an audit director at Audit Scotland, and Joanne Brown, who is a partner at Grant Thornton UK LLP.

We have quite a number of questions to put to our witnesses this morning. Before we get to those, I ask the Auditor General to make a short opening statement.

Public Audit Committee

Section 22 Report: “The 2021/22 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 27 April 2023

Richard Leonard

I invite Bill Kidd to ask a couple of final questions.