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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 3 July 2025
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Displaying 3264 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: 16 June 2022

Richard Leonard

Thank you. You are right to say that we will return to the themes that you outlined in your opening statement in the next hour or so, so thank you very much for that.

You will be aware that the Scottish Government has released a large number of emails that give us some sense of things that were going on from 2015 onwards. Can I take you back to August 2015? We have published correspondence from Transport Scotland to Keith Brown, who was the Cabinet Secretary for Infrastructure, Investment and Cities at the time. On 20 August 2015, correspondence seeks his approval for Caledonian Maritime Assets Ltd to award FMEL shipbuilding contracts of a total cost of £96 million—I think that it went up to £97 million in the next few days—for two new major ferries. Towards the end of that correspondence, reference is made to the potential for a legal challenge from one of the unsuccessful shipyards. The correspondence goes on to state that CMAL was confident that it could defend any challenges in those circumstances, but it also uses the interesting phrase:

“that said, the relationship between Scottish ministers and Ferguson’s owner is well known”.

For the benefit of the committee, can you define the terms of that relationship at that time?

Public Audit Committee

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

Meeting date: 16 June 2022

Richard Leonard

To go back to the point about the legal letter, the committee was told in evidence last week by Chris Wilcock, who is head of the ferries unit at Transport Scotland, that his understanding from the chief executive officer of CMAL was that no such threat existed. We will get CMAL in in a fortnight’s time, so we will put some of those questions to it then.

Public Audit Committee

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

Meeting date: 16 June 2022

Richard Leonard

—on 5 June 2018 or that it was a three-year-old legal letter?

Public Audit Committee

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

Meeting date: 16 June 2022

Richard Leonard

We work on the basis that people before us are telling the truth.

Public Audit Committee

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

Meeting date: 16 June 2022

Richard Leonard

Who was? Derek Mackay?

Public Audit Committee

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

Meeting date: 16 June 2022

Richard Leonard

Do you think that you had preferential access to ministers?

Public Audit Committee

Decision on Taking Business in Private

Meeting date: 16 June 2022

Richard Leonard

Good morning. I welcome everyone to the 18th meeting of the Public Audit Committee in 2022. Under item 1, does the committee agree to take agenda items 3 and 4 in private?

Members indicated agreement.

Public Audit Committee

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

Meeting date: 16 June 2022

Richard Leonard

Our principal agenda item this morning is continued consideration of the Auditor General for Scotland’s report, “New Vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”.

Our witness this morning is Jim McColl, the former director of Ferguson Marine Engineering Ltd. You are welcome, Mr McColl. We had also hoped to take evidence from the former chief executive officer of FMEL, Gerry Marshall. Unfortunately, he is not now available but, as always, the option remains open to the committee to consider whether we wish to seek further evidence at a future date.

Mr McColl, we have a written submission from you, so thank you for that. I invite you to make a short opening statement of about two minutes before we get into questions.

Public Audit Committee

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

Meeting date: 16 June 2022

Richard Leonard

Okay. Obviously, there is a financial relationship between the Government, Caledonian Maritime Assets Ltd and the company that you were the owner of. Again, I want to go back to August 2015. I mentioned the email that was sent to Keith Brown on 20 August. Come 31 August, the First Minister went to the yard to announce that FMEL was the preferred bidder for the contract. That must have strengthened your hand in any negotiations that were taking place.

Public Audit Committee

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

Meeting date: 16 June 2022

Richard Leonard

Thank you very much indeed, Mr McColl. Thank you for giving up so much of your time this morning and furnishing us with some detailed and wide-ranging answers to our questions.

If, on reflection, you have any other material that you think would be useful to the inquiry that we are running and would help to inform it, we would be very happy to receive it.

Thank you once again for your time this morning. It has been much appreciated.