NICOLA Sturgeon has said no decision has been taken on a near £100m budget rise in the taxpayer cost of the vessels at the centre of Scotland ferry fiasco.
Nationalised Ferguson Marine records show there remains a serious concern that Glen Sannox and Hull 802, the two lifeline ferries will never be delivered as it emerged the costs are now forecast to soar by nearly £100m from around £240m to nearly £340m.
It further emerged there were further delays to one of the two vessels due to serve customers next year, which will not be ready till 2024, while there was a "one or two month worst case slippage" on the other.
The overall cost includes a lost £82.25 million paid by Scottish Government-controlled ferry owners Caledonian Maritime Assets Limited (CMAL) to Jim McColl-controlled Ferguson Marine under the original contract plus £45m in ministerial loans that have also been lost.
A letter from Ferguson Marine has confirmed that the costs since the Scottish Government took control of the yard when it went into administration in August, 2019, has risen from around £112m when Audit Scotland examined the procurement process in March to £209.6m.
If the nationalised shipyard meets its target and contingencies are not needed they would save £13.2m, meaning the overall cost would come down to £327m.
Before the further delays, continuing issues meant that Glen Sannox was not to see service till between March and May 2023 at the earliest, while Hull 802 was not due to set sail till between October and December 2023.
Both ferries were due to cost just £97m - and were to be paid for by CMAL by repaying a Scottish Government loan over 25 years through using revenue it generates from the fees it gets from the lease of vessels like CalMac’s ferry fleet and harbour access fees.
But it was revealed that as part of the Scottish Government's special deal to allow Ferguson Marine to win the contract in the wake of CMAL's concerns over a lack of financial guarantees from Jim McColl's firm, the loan was wiped out.
The £82.5m that was drawn down was "eliminated" after the firm went into insolvency in August, 2019.
The special deal came after CMAL registered concern that it was being put at commercial risk if Ferguson Marine became insolvent or failed to deliver on the ships without the full refund guarantees.
When questioned on the price rises during First Minister’s Questions, Nicola Sturgeon said – despite being made aware of the circumstances at the yard last week – ministers had not yet looked at the new budget for the ships.
“Ferguson has set out its latest estimate of cost, but this is the key point – ministers have yet to properly scrutinise that estimate, so no decision has yet been taken about any further increase in the budget for the ferries,” she said.
“As that process of due diligence, which Government has to undertake, we will update Parliament in the normal way.
“That is what we will continue to do, as we work to continue to support the shipyard, to support the jobs that depend on that shipyard – that’s the responsible approach to Government.”
Scottish Tory leader Douglas Ross, questioning the First Minister, said that the issue of the ferries, which have been delayed by five years thus far, “does matter”.
“It’s matters to the islanders that have been abandoned by this Government,” he said.
“And it matters because the price and the delays keep spiralling further.”
Responding, the First Minister said: “What I do agree with Douglas Ross on is that these things do matter and the Government take them as seriously as we do.”
The news came as the pre-nationalised Port Glasgow shipyard under Jim McColl faced new accusations of receiving “special treatment” in the bidding process for the ferries.
The BBC said that a more-than 400 page document written by ferry owning and procuring body Caledonian Maritime Assets Limited (CMAL) was passed to the yard by a design consultant, detailing the technical requirements for the vessels and has been described as a "crib sheet" that gave Jim McColl's company an advantage.
Nicola Sturgeon dismissed claims of a cover up over alleged rigging of the award and has said she had seen no evidence of criminality in the process but that the allegations should be investigated.
The First Minister said the government was unaware of any inpropriety over the procurement process which ensured that independence-supporting businessman Jim McColl's won the contract.
The Scottish Conservative leader said that the evidence looked like "corporate fraud" and had "a stench of political corruption".
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