New concerns over the future of state-owned shipyard at the centre of Scotland's ferry fiasco have surfaced after legal checks over a vital £14.2m taxpayer investment have 'stalled'.
It comes as ministers have been urged to help save Ferguson Marine by putting it "front and centre" of a potential frigate building partnership between the UK and Norway.
Uncertainty surrounds whether a vital £14.2m support package for Ferguson Marine will be finally agreed because of 'delays' in a final agreement.
The Scottish Government has previously withheld financial support for the Port Glasgow yard despite its advisers being in favour of a support package to secure its future.
The board at Ferguson's has stated that a failure to get a committed investment of £25m to support future work casts "significant doubt" on its ability to continue.
Ministers during the summer had indicated that £14.2 million will be invested over two years subject to the plan passing detailed legal analysis and independent financial and commercial assessments. That was expected to be complete by the Autumn - but so far there has been silence over any final agreement.
READ MORE: Procurement of new wave of Scots ferries 'delayed' by nearly two years
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The Norwegian Ministry of Defence has said it intends to invite the French, German, British and US governments to begin discussions regarding a potential strategic partnership for deliveries of new frigates to replace the Royal Norwegian Navy’s current Fridtjof Nansen-class.
Now calls are being made to UK ministers to take advantage and help preserve nationalised Ferguson Marine In June, the Norwegian Parliament passed a new long-term plan for the Norwegian Armed Forces, which calls for the acquisition of a minimum of five, optionally six new anti-submarine frigates with embarked anti-submarine helicopters.
The plan stresses that the new frigates are not to be procured as stand-alone vessels, but through a long-term and mutually beneficial strategic partnership with a close ally with strategic interests closely aligned with those of Norway.
This strategic partnership is to include joint acquisition, operation, maintenance, continuous development and upgrades of the new frigates throughout their service life. To limit the need for upgrades of the Fridtjof Nansen-class, Norway is also looking to accelerate the acquisition by joining an existing production line for such vessels.
The Alba Party say that a decision is urgently needed over yard investment and said Scotland must be “front and centre” of any UK partnership agreement with the party’s general secretary Chris McEleny saying that Ferguson’s in Port Glasgow would be an “ideal shipyard” to partner up with other Scottish shipyards to deliver the vessels for the Norwegian Government.
Mr McEleny, a former defence worker and ex-Inverclyde Council SNP group leader has been among those pushing for the yard to be directly awarded the contract for a new wave of seven vital lifeline ferries for Scotland's islanders but the Scottish Government has decided to put it out to tender.
Ministers decided a direct award could be subject to legal challenge, leading to uncertainty and delay.
He said: "The story was that without the investment the yard wouldn't be viable. Nothing has happened.
"MSPs in the the west of Scotland have been clearly been asleep at the wheel. This money we were told was vital for the future viability of the yard and there would be an update by the Autumn. We are now very much in the winter and no money is on the able and no orders are in the order book and the future is bleak if it doesn't invest in the yard."
He says that Ferguson’s would be well placed to partner up with BAE Systems in Glasgow and Babcock in Rosyth to secure the new partnership between the Norwegian and UK Governments.
He said that “such an opportunity would also begin the process of future proofing Faslane and the Clyde by allowing Norwegian access to one of the most important naval bases in the world which would sustain jobs through additional service and repair.”
A strategic partner for the Norwegian effort is expected to be chosen by 2025. Five to six new frigates could be ordered to meet Norway’s long-term defence plan requirement. The future ships will also be capable of carrying anti-submarine helicopters.
He added: "A partnership deal with Norway could be a lifeline for Ferguson’s. Inverclyde of course has a long and proud history of partnership with Norway - much of the Royal Norwegian Navy was based in Greenock during the second World War.
"The Scottish Government should ensure that the UK Government is investigating these sort of opportunities and that a partnership that puts Ferguson’s and other Scottish Shipyards front and centre of a UK Norway defence agreement gets the full backing of government. Inverclyde and Scotland has the skills and the Clyde clearly has the track record when it comes to Frigates to deliver a jobs boost for Scotland and new surface fleet for Norway.”
The nationalised Ferguson shipyard made it through to a shortlist of bidders to build seven small ferries for CalMac.
The Port Glasgow yard is among six firms invited to tender for the contract, having passed the pre-qualification stage.
The firm believes the order, potentially worth £175m, could help it move forward after years of controversy over construction of two much delayed and much larger and complex CalMac ships - Glen Sannox and Glen Rosa.
There have been concerns that without a direct award, the yard would fail in a competitive tender for the work, that is seen as crucial for its future.
Ministers have been accused of 'sleepwalking' the nationalised firm into oblivion by failing to support its bid for the ferry work.
Ferguson Marine (Port Glasgow) made a net loss of £1.3m in 2022/23 and have been concerned about the risks to the business and pointed to a failure to get a committed investment of £25m to support future work at the Inverclyde after the delivery of Glen Sannox and Glen Rosa.
One ferry user group official said that all islanders wanted were new ferries that are "so badly required" but that "it would be wrong to think that we don't care who builds them".
"People recognise that it is good for the country to have a thriving ferry or shipbuilding business and it should mean there is more control of what we get in the end," he said.
"One thing that all ferry users need is certainty and we do need clear answers over the future.
"If the investment in Ferguson Marine stalls and the silence is deafening, it does raise obvious questions for the future of ferries in Scotland. We are used to delay when it comes to ferries and I had hoped the habit could be broken."
The contract for the seven all-electric ferries, part of the Small Vessels Replacement Programme (SVRP), is due to be awarded next March.
The 50m-long vessels are similar to three small ferries built on-time and on-budget by previous ownerships of Ferguson's in the past.
Ferguson Marine was approached for comment.
It is believed that a decision over whether crisis-hit shipyard Ferguson Marine will net £14m of taxpayer cash will be made at the upcoming budget due to be unveiled on Wednesday.
A Scottish Government spokesman said: “Ferguson Marine’s Board is continuing to work on a long-term business plan to improve productivity and build a sustainable future. The Scottish Government is willing to back the board’s investment plans subject to due diligence and provided commercial standards are met. "
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