Chief adviser told to lift ferry costs confidentiality lid

Scotland's most senior civil servant has been asked to intervene over a Scottish Government refusal to lift the confidentiality veil around the full costs of the ferry fiasco.

John-Paul Marks, the permanent secretary to the Scottish Government, who supports the government in developing, implementing and communicating its policy agenda, is being asked to end the impasse that has seen ministers steadfastly refuse to spell out the extra costs involved in continuing to complete one of the two wildly delayed and over-budget ferry fiasco vessels – which they admit is not value for money.

A Scottish Government 'value for money' review supported by a secret analysis by consultants Teneo said it would be cheaper to scrap the ship still being built at state-owned and publicly funded shipyard firm Ferguson Marine and place a new order elsewhere.

It is understood the Teneo report is subject to a non-disclosure agreement (NDA).

But the previous wellbeing economy secretary Neil Gray gave a rare shareholder authorisation known as a written authority in May to plough ahead with supporting the delivery of the two ferries at Ferguson Marine in May, saying it is the "platform upon which future success can be built".

He said that non-delivery of the ferries at nationalised Ferguson Marine (Port Glasgow) would put the very future of the yard and the jobs it supports "in jeopardy".

A similar shareholder authorisation in the form of a letter of comfort was made as the Scottish Government forced the awarding of the disastrous ferry contract to the then Jim McColl-led Ferguson Marine in October 2015 despite concerns from state-owned ferry owners and buyers, Caledonian Maritime Assets Limited, that there was no mandatory builder's refund guarantee.

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The Scottish Government has blocked all information over the costs that led to Mr Gray's written authority citing that it was exempt in terms of the Freedom of Information Act – because its release would result in "substantial prejudice" to its commercial interests.

It later used another loophole that claims exemption because its disclosure would cause "substantial prejudice to the effective conduct of public affairs" in a move that is being challenged.

Now Richard Leonard, convener of the Public Audit Committee that is examining arrangements around the delivery of Glen Sannox and Glen Rosa, has called on Mr Marks, who leads more than 7000 staff within the Scottish Government and has oversight of around 125 agencies, to lift the cloak of secrecy that surrounds the costs.

He has told Mr Marks, who is the chief official policy adviser to the First Minister of Scotland and is responsible for ensuring that the government's money and resources are used effectively and properly, that his committee "wishes to state... its disappointment that important cost information used to make a value for money assessment on the completion of [Glen Rosa] at FMPG [Ferguson Marine (Port Glasgow) Ltd] will not be disclosed by the Scottish Government."

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He added: "As you will be aware, since May 2023, the Committee has repeatedly sought to achieve more transparency regarding this decision, asking the Scottish Government to publish the two commissioned reports on the funding and future options for FMPG and the due diligence used to make the value for money assessment.

"It is regrettable that the Scottish Government is unwilling to confirm what the estimated cost of procuring a new vessel was, for both this Parliament and the people of Scotland to understand how it compares against the ever-rising costs associated with completing [Glen Rosa] at FMPG.

"The committee simply does not accept the position that providing this information draws on commercially sensitive information that if released, could impact on any future procurement.

"The committee maintains the view that a balance can be struck between recognising issues of commercial confidentiality and the ability of parliament to hold the Scottish Government to account regarding the information that is used to make critical decisions about the yard and the vessels."

The two ferries being built at the Inverclyde shipyard were due online in the first half of 2018, with one initially to serve Arran and the other to serve the Skye triangle routes to North Uist and Harris, but are at least six years late. It has been confirmed that both are now to serve Arran.

Glen Sannox, launched by Nicola Sturgeon nearly seven years ago, is not expected to be ready for passengers till August at the earliest.

Glen Rosa was meant to be delivered to CalMac in August 2018, but that is currently scheduled to be completed in May 2025 – meaning it would be ready for passengers the following August.

The dates of arrival and the costs have been in a constant state of flux as their construction has been plagued by design challenges, cost overruns and delays.

In the midst of the delays and soaring costs, Ferguson Marine under the control of tycoon Jim McColl fell into administration and was nationalised at the end of 2019 with state-owned ferry owners and procurers Caledonian Maritime Assets Limited (CMAL) and the yard's management blaming each other.

Among other concerns being raised is over the Scottish Government entering into ten gagging clauses with external private companies concerning the state-owned and publicly funded shipyard firm Ferguson Marine at the centre of the fiasco.

Ministers have also been criticised for apathy over a six-month failure to sanction a full forensic probe into the cost of Scotland's ferry fiasco.

Nearly six months ago, the Scottish Government was told to make a ministerial order to kickstart an Audit Scotland investigation into what happened before Ferguson Marine was nationalised but ever since there has been silence.

Notification of the 'written authority' came in May, last year from Gregor Irwin, the director general of economy for the Scottish Government who is designated as the 'accountable officer' for the Scottish Government's investment in Ferguson Marine.

The Scottish Public Finance Manual, issued by Scottish ministers to provide guidance on the proper handling and reporting of public funds, states that the accountable officer has a "personal responsibility for the propriety and regularity of the finances under their stewardship and for the economic, efficient and effective use of all related resources".

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Accountable officers are personally answerable to the Parliament for the exercise of their functions.

Under Section 15(8) of the Public Finance and Accountability (Scotland) Act 2000 (the Act), an accountable officer can obtain written authority from Scottish ministers if they consider that an action they are required to take is "inconsistent with the proper performance of the functions" they carry out.

The officer is required to provide copies of the request for the authority and the authority itself to the Auditor General for Scotland and the clerk to the Public Audit Committee.