SCOTTISH Government senior officials have insisted there is "no blank cheque" over the £250m ferry fiasco contract - despite public finance auditors saying ministers were "committed to pay the final vessel costs regardless of the final price".

Colin Cook, the Scottish Government's director of economic development has said that there remained an option to stop the project and re-procure the work to build the two lifeline vessels, although he said final decisions would have to be made by ministers.

Concerns are increasing over the delivery of the ferries which were first ordered on October 16, 2015, but are now delayed by at least five years while costs over the disatrous contract have soared from £97m to at least £250m.

The Herald on Sunday revealed that there remains a catalogue of faults with the two vessels under the stewardship of minister-controlled shipbulder Ferguson Marine which has prompted serious shipyard concerns over whether they will ever see service.

A damning March internal analysis from state-controlled Caledonian Maritime Assets Ltd (CMAL), which owns and commissions the nation's ferries, shows the number of faults uncovered by Owner’s Observations Reports (OORs) that remain outstanding on the ferries has risen from 166 before nationalisation to 237 in March. Some 65% of them relate to safety, maintainability, or specification requirements.

Internal documents from nationalised shipyard firm Ferguson Marine admitted a serious risk that CMAL may not accept the vessels for the ferry operator CalMac’s lifeline services to Scotland’s island communities.

The Herald:

Senior Scottish government officials were quizzed on the taxpayer burden following concerns emerging from an Audit Scotland analysis that ministers intend to plough on with the completion of the Glen Sannox and Hull 802 no matter what the cost.

South Scotland MSP Craig Hoy, who is chairman of the Scottish Conservative Party raised said that the Audit Scotland's statement amounted to a "blank cheque" from the taxpayer.

"The taxpayer will continue to fund these vessels until they're completed or until some other decision is taken," he said.

But Mo Rooney, the Scottish Government's deputy director of strategic commercial interventions said: "Certainly we've continued to continually assess value for money so there is no blank cheque. I mean, were there to be a suggestion of an increase, we would certainly be advising ministers in what the value for money position is. So it isn't a blank cheque.

"The most current advice from Ferguson's and from CMAL is that the vessels are progressing in line with the new schedule. And I think we all look forward to seeing these vessels in service on lifeline routes just as soon as possible."

When asked if the costs of the project rises by a further £50m who pays, Mr Cook confirmed scrapping the project would be considered as an option, but than any final decision would be made by ministers.

The Herald: Glen Sannox Ferguson Marine, Port Glasgow.

He said he took the position of accountable officer for the ferry project when a report found that costs of the vessels were going to increase and that a set process took place.

He told the parliamentary public audit committee: "The accountable officer applies the accountable officer tests.

"One of the considerations that I would have had... in any future iterations around the costs of the vessels... is whether it continues to represent best value, whether it continues to represent the best opportunity to get those ferries delivered in the reasonable timetable, whether it continues to deliver value for money compared to alternatives.

"And the alternatives of course are to stop and to re-procure, with all the timetable increases and the issues for the yard and the workforce that that would bring. Those decisions are looked at. They're taken very seriously, and we don't write blank cheques for public money."

Mr Hoy said: "So there is still the possibility that you could pull the plug on these two vessels?"

Mr Cook responded: "There's the opportunity every time... any decisions that are taken around the financing and the allocation of public money to the vessels, the appropriate tests and assessments are applied. And that will happen always."

Mr Hoy added: "Yes or no, there's still the possibility you could pull the plug on these two vessels?"

Mr Cook said: "We're determined to deliver these vessels. We understand that they're vital for communities and that will be our focus."

Mr Hoy remarked: "It is a yes or no answer."

Mr Cook then said: "Well, unfortunately it's trying to draw me into the realms of speculation where decisions on these things are taken by ministers and I don't think I'm going to be able to add anything to it other than I know that our team is monitoring the progress of the vessels and we're working very closely with with Ferguson's.

"And I also know that we are responsible as accountable officers within the organisation for applying the right tests and making the right recommendations for ministers and that we will continue to do."

The ferries Glen Sannox and Hull 802, which are currently still languishing in Ferguson Marine's Inverclyde shipyard, are scheduled to see service for island communities March and May 2023 and between October and December 2023 respectively.