Stop sending ferry and bus contracts abroad, first minister told

The Scottish Government has been told to “stop sending public contracts” abroad and instead build more infrastructure in Scotland.

Scottish Labour leader Anas Sarwar urged the first minister to commit to ensuring shipyard Ferguson Marine and bus manufacturer Alexander Dennis had work going forward.

He welcomed the recent announcement for a furlough scheme for Alexander Dennis and backed calls for Ferguson Marine to be given a direct award to build the next new ferry.

First Minister John Swinney said the government was giving consideration to a direct award but it was “complicated”.

 He also confirmed the furlough scheme would only be available if the company was successful in securingnew orders.

Alexander Dennis has previously set out plans to close its sites in Falkirk and Larbert, with production to move to Yorkshire. This would have cost the area 400 jobs.

But the government’s announcement this week means up to £4m will be provided to support the company to bridge the gap between signing a new order and starting work. Such a scheme is the first of its kind in Scotland.

The struggling Ferguson Marine shipyard is also in need of orders to stay open. It is currently working to finish the delayed Glen Rosa, but once that vessel is completed it has no further vessels to work on.

Earlier this week, the trade union GMB and others called for the yard to be given a direct award to replace the ageing MV Lord of the Isles vessel, or failing that allowing the wider social impact to be considered as part of the tender process.

Sarwar said it was "essential" both companies had a supply of work to prevent job losses.

He said: “We need a more coherent industrial strategy where we build our vital infrastructure here in Scotland.

“That means buses built in Scotland so Scottish bus companies can thrive. That means ferries built in Scotland so that Scottish shipyards can thrive.

“But under the SNP we have had buses for Scotland built in China while Scottish bus companies struggle, and ferries built in Turkey and Poland while Scottish shipyards go without.” 

Swinney said his government was doing the “diligent work” to see whether a direct award can be considered for the ferry replacement.

He added: “I am all for buses being built in Scotland, I’m all for ferries being built in Scotland, I’m all for making sure we can that and all for making sure we make the investments to make that happen. That’s what I was doing this week to make sure that’s likely to happen.” 

Lib Dem leader Alex Cole-Hamilton called for more islanders to be eligible for a compensation scheme designed to make up for recent ferry disruption.

The scheme was announced in June but is restricted to Arran and parts of the Western Isles.

Cole-Hamilton called for communities on Mull, Iona, Coll, Tiree, Islay and Jura to be eligible too.

The first minister said the scheme had been made available to only the worst affected areas, adding that for the islands mentioned there had “not been of a level that is comparable to the areas of significant disruption”.