A NEW round of bonuses amounting to over £47,000 is being made to Ferguson Marine executives this year - despite the ongoing furore over the failure to deliver two long-delayed ferries.
Ministers say that further bonuses are legally required to be made for the year 2022/23 despite concerns over £87,000 paid to executive management at the ferry fiasco firm in 2021/22.
This brings the total level of bonuses due to be paid out over two years to £134,218.
The deputy first minister and finance secretary Shona Robison has confirmed that the first of two instalments of £23,609 each has already been processed.
This first payment was made in [Ferguson Marine's] April 2023 payroll with the second payment of £23,609 due in June, subject to ongoing discussions involving the board chairman Andrew Miller.
She says that they were the result of the "legacy contractual commitments" made in November, 2022 "without the prior knowledge of the Scottish Government and were "legally required".
But the First Minister has said there should be no bonuses paid in this financial year to bosses at Ferguson Marine.
READ MORE: Auditor concerns over shake-up of bonus culture at Ferguson Marine
In a letter Ms Robison said: "I know that the committee will share my disappointment, particularly at a time when the delivery of vessels MV Glen Sannox 801 and Hull 802 remain long overdue; that despite every effort being made to ensure that no bonuses were paid in 2022/23, the payment of bonuses for 2022/23 is contractually unavoidable.
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"Scottish Ministers remain committed to supporting [Ferguson Marine] and its workforce in delivery of MV Glen Sannox (801) and Hull 802 for our island communities. It is recognised that the commercial nature of shipbuilding needs to be reflected in how senior staff are remunerated and their skills retained. I am confident that the chair will ensure he is mindful of this in setting out his plans for the future remuneration of staff."
It comes as the head of Scotland's public spending watchdog said moves for a shake-up over governance rules at Ferguson Marine have still to be resolved despite a row over controversial £87,000 bonuses paid to executives at the Scottish Government-owned ferry fiasco firm.
Auditor General Stephen Boyle has said that a revised performance framework for Ferguson Marine's senior managers and chief executive was still awaiting approval and consideration by the Scottish Government.
He said that spoke to the "lack of clarity" over how the Scottish Government expected Ferguson Marine to operate.
He said he doubted the controversial bonuses paid to bosses at Ferguson Marine can be recovered and described the payments as “unacceptable”.
One ferry user group official said that for the payments to continue while islanders while the ferries have been delayed even further is a "disgrace".
"How can anyone be rewarded for a failure to deliver," he said. "Islanders like me who have to suffer the continual disruption caused by a failure to invest and deliver just see this as totally dishonourable."
The yard, which was rescued from administration by the Scottish Government in 2019, has struggled to complete two lifeline ferries, with further delays also announced by the yard in March, pushing the delivery date for the Glen Sannox and hull 802 to the end of this year and 2024, respectively, five and six years later than originally planned. The costs of delivery which were originally set at £97m are thought to have quadrupled.
The payments have been made despite the Scottish Government's public sector pay policy maintaining a suspension of performance related bonuses since the shipyard firm was nationalised in 2019.
Shona Robison
It did not apply to the shipbuilding firm, because ministers decided it did not have to comply, and remains off the long list of public sector bodies that are covered by the pay rules.
This was confirmed in an agreed operations framework with the shipbuilders.
The continuing bonus culture comes despite an outcry over the over £2000-a-day remuneration, made up of fees and expenses given to Ferguson Marine's previous Scottish Government-appointed turnaround director Tim Hair who left his post in February, last year.
READ MORE: CalMac ferry remains sidelined months after rust and engine issues
The Scottish Government defended the payments to Mr Hair as being "in the middle of the industry norm".
The yard, which was rescued from administration by the Scottish Government in 2019, has struggled to complete two lifeline ferries, with further delays also announced by the yard in March. pushing the delivery date for the Glen Sannox and as-yet-unnamed hull 802 to the end of this year and 2024, respectively, five and six years later than originally planned.
At Holyrood’s Public Audit Committee on Thursday, Mr Boyle re-stated his opposition to the bonuses and said it was unclear why they were paid.
George Crookston – one of those who benefitted from the bonus scheme – left his post in mid February, after being appointed in March 2020. He is also no longer a member of the board, which serves as its governing body.
Mr Crookston, received incentive payments as part of the controversial bonus scheme of approximately £17,500 in 2021/22.
That was on top of a remuneration package made up of approximately £122,500 in salary and £6500 in pension benefits.
The bonuses were recommended by the yard’s former turnaround director Tim Hair, who was brought in by ministers after the yard was nationalised in August 2019.
The bonus is said to be in two parts, 7.5% to be paid upon delivery of the hull of the Glen Sannox and “a further 10% discretionary element”.
Ms Robison said: "The [Fergsuon Marine] chair has committed to avoid a repeat in the current financial year and the work he is currently undertaking to reform the remuneration and reward arrangements and the governance associated with them will help achieve that.
"The chair of [Ferguson Marine] is continuing to lead the development of new governance arrangements for senior staff remuneration through a programme of work aimed at rebalancing reward and remuneration for the senior management team. This will help fulfil the commitment made by Mr Swinney to Parliament in March to ensure that arrangements and commitments entered into for 2023/24 onwards are done so with the appropriate governance and transparency expected of a public body."
Scottish Conservatives leader Douglas Ross said: “The two ferries are not fit to sail, the costs continue to spiral out of control, and islanders continue to be left without vital, lifeline services – so First Minister, what on earth could these bonuses be for?”
Mr Yousaf said: “I won’t disagree with Douglas Ross or the Auditor General… the former deputy first minister (John Swinney) made clear his anger, we share that anger, I share that anger at the fact that bonuses have been paid.
“The bonuses that have been paid relate to a decision made by the remuneration committee of Ferguson Marine without consultation with the government in November 2022.
“Those bonuses, I have asked if they can not be paid and the advice coming back is that they are a contractual obligation.
“For any future discussion or consideration of bonuses, I have made it clear there should not be bonuses paid in relation to vessels 801 and 802.”
The First Minister went on to say it was “his expectation” that bonuses should not be paid for the 2023-24 financial year.
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