 That concludes the urgent question. The next item of business is a statement by Neil Gray on Ferguson Marine due diligence. The cabinet secretary will take questions at the end of his statement and so there should be no interventions or interruptions. I call on Neil Gray up to 10 minutes, cabinet secretary. Thank you, Presiding Officer. Today's statement maintains the commitment given by the former cabinet secretary for finance in the economy some time ago to update Parliament on progress in the building of the MVE Glensanix 801 and Hull 802 at Ferguson Marine Port Glasgow and to do so in an open and transparent way. Today I wish to update you on the future resourcing and delivery of vessels 801 and 802 but before I do so I wish to remind you of our three key objectives when we brought Ferguson Marine into public ownership. These were the completion of vessels 801 and 802 in order to provide sustainable, high-quality lifeline services to our island communities, to support a highly skilled and dedicated workforce and to ensure a sustainable future for the yard given its importance to the local economy and the resilience of Scotland. Those remain as valid today as they were then and I continue to be impressed by the way in which the workforce in the yard have worked so hard with such pride to deliver the vessels in often difficult circumstances. I want to take this opportunity to pass on my thanks to all those working at Ferguson Marine for their tireless efforts and hard work. In September 2022 the Parliament through the net zero energy and transport committee were advised by the CEO of Ferguson Marine of his forecast relating to an increase in the cost of delivery of both the vessels and he set out that his forecast at that time was that the total cost to complete both vessels would be £202.6 million, which included a £6.2 million contingency. That meant a forecast cost to complete of Glen Sanix of no more than £97.5 million pounds and for vessel 802 of £105.1 million pounds. Significant due diligence has been undertaken on the CEOs. It revised estimated cost to complete each vessel in line with the requirements of the Scottish Public Finance Manual that follows on from the requirements of the Public Finance and Accountability Scotland Act 2000, and this is right and proper, particularly given the current pressures on public expenditure and our budget as a whole. This process of due diligence has focused on regularity, propriety and value for money of continuing to complete these vessels. Given the complexity of the build programme and the importance of a full and thorough assessment to support any approval of public expenditure, the due diligence process has been supported throughout by the independent external commercial advisers, as well as internal expertise within the Scottish Government. Whilst the process has been undertaken, we have ensured that Ferguson Marine has been able to continue to meet their obligations and to maintain progress on the build of each vessel. As a consequence, the former Deputy First Minister John Swinney announced to this chamber two uplifts to the 22-23 Ferguson Marine budget of £15 million in December 2022 and £6 million in March 2023. That took the total budget allocated to Ferguson Marine for 22-23 to £61.1 million. That met the 22-23 requirement for additional funding set out by the chief executive in September 2022 and was right and proper that we did so whilst this due diligence work progressed. I should be clear, of course, that the increase in costs is extremely disappointing and I recognise that the building of these ferries has been hampered by delays and cost overruns. As Mr Swinney set out in March of this year, that due diligence was then nearing a close and it has now completed. As a consequence, I now wish to provide Parliament at the first opportunity an update on our decisions relating to the future funding for Ferguson Marine. I am pleased that we have completed the assessment fully in line with the Public Finance and Accountability Act, Scottish Public Finance manual and Green Book. Officials have advised me that, as a consequence of that due diligence, that the regulatory and propriety of completing vessels 801 and 802 under the existing contracts is met. I can also confirm that, with respect to vessel 801, the value for money case for completing that vessel is also met. The cheapest option open to ministers is to complete 801 at Ferguson's. However, the case for vessel 802 is more challenging and I have accepted the judgment of the Scottish Government accountable officer that the narrow value for money case has not been made. Having said that, in making a decision around the way forward, I am guided by a wider set of considerations relating to the original policy objectives and the impact that any decision might have on people, communities and national resilience. It is also important that I consider the impact on Ferguson Marine as well. Those are not matters that can be taken into account in a pure value for money exercise, but clearly they are matters of the utmost importance. From the very start, we have been clear that our island communities deserve to be supported by two new energy efficient vessels with the capacity and reliability that are required to support vibrant island economies. Although I accept that the pure value for money assessment concludes that it could be cheaper to re-procure a new vessel, that work also shows that doing so would result in significant further delays. A new vessel could not be deployed until at least May 2027 at the earliest four years from now and two and a half years from the current delivery timescale. I do not consider that that is acceptable to our island communities to wait this further period. Vessel A02 will provide lifeline connectivity to the mainland, ensure that people on Arran are supported for day-to-day needs around health, education and commercial activity and provide a resilient service to support the tourist industry, which contributes so much to the island's economy. Recent issues with the reliability of an ageing island fleet and the costs associated with hiring replacement vessels in order to maintain services have merely added to the compelling case for delivering additional capacity as quickly as possible. I am committed to supporting the workforce at Ferguson Marine and recognising the importance for jobs, skills and the opportunity for future generations that the Yard provides. More immediately, of course, the continuing delivery of Vessel A02 through Ferguson Marine ensures that the local economy benefits from the company's spend on salaries, subcontractors and taxes that support the local labour market and wider businesses in the Inverclyde area and beyond, which would be lost if we did not proceed. Finally, I remain committed to supporting a sustainable future for Ferguson's. I believe that confirming our intention to deliver Vessel A02 at the Yard provides a platform upon which future success can be built. Put simply, if Vessel A02 was not delivered at Ferguson's, then the very future of the Yard and the hundreds of jobs that it supports would be in jeopardy. On the basis of the cost projections in our due diligence, I have therefore provided written authority to the accountable officer to secure the continued build of Vessel A02 at Ferguson's. In the light of this decision, I can also confirm the preliminary budget set out by the then Deputy First Minister for Ferguson Marine for £23.24 to support the continued completion of Vessel A01 and A02, and I have advised the CEO of that position. Our due diligence work has identified a number of inflationary and other significant pressures that could increase the cost to complete. As part of our on-going control and scrutiny, the chief executive will undertake a detailed review of remaining costs in light of the due diligence and will update Parliament in due course. I am also formally asking Ferguson Marine to do everything possible to improve productivity, maximise operational efficiency and ensure that there is tight control on costs as well as having a focus on delivering the vessels as quickly as possible. I expect Ferguson Marine to provide a detailed scrutiny of the forecast costs, the expenditure incurred and monthly progress on this and the anticipated delivery dates. In the meantime, I also reluctantly accept the revised delivery dates set out by Ferguson's CEO on 16 March of autumn this year for Vessel A01 and late summer of next year for A02. I am also committed to secure sustainable future for Ferguson's. We have already made progress on the work that the chief executive has done to secure some initial contracts with BAE to support their progress on a route to a sustainable future and also to ensure the highest levels of internal accountability and oversight. I have also separately confirmed an additional £120,000 for cyber security improvements, internal audit and civil engineering that the CEO of Ferguson Marine has set out as essential. Those two ferries, dual fuelled and energy efficient will support the Clyde coast communities for future generations. They will increase capacity, make it easier for island communities and businesses to send and receive freight and provide a boost for the tourism industry that is so vital to the islands and our country as a whole. To reiterate, when we took Ferguson's into public ownership in 2019, we did so to ensure the delivery of A01 and A02 and to secure the future of the Yard and its workforce. We did so because of the vital significance of the vessels to our island communities and the Yard and its workforce to the local, regional and national economy. The decisions that I have outlined today deliver on those commitments. Thank you. The cabinet secretary will now take questions on the issues raised in his statement. I intend to allow around 20 minutes for questions after which we will move on to the next item of business. I would be grateful if members who wished to put a question were to press their request-to-speak button now. I call on Graham Simpson. Thank you. Can I tell the cabinet secretary that so far his government has delivered absolutely nothing? Can I thank him for advance sight of his rather embarrassing statement? The building of ferries A01 and A02 has been a shambles from start to finish. In fact, shambles is not a strong enough word, it's been a scandal. Six years late, three times over budget, now standing at £300 million plus. In March, the Auditor General said the final cost of A01 and A02 remains unclear and after today's statement that remains the case. So can I ask the cabinet secretary what the final bill, the final bill will be for A01 and he's told us today that finishing A02 at Ferguson's is not value for money, though it may be quicker. So how much cheaper would it be to buy a new ferry elsewhere compared to finishing it here? Cabinet secretary. Well, I don't need to remind Graham Simpson the decision I've taken secures the future of Ferguson Marine and makes sure that we deliver A01 and A02, which is exactly what we promised we would do. You know, this is typical of the Conservatives, who know the cost of everything but the value of nothing. Of course I have got to consider the narrow value for money considerations here, but I have a duty to ensure I consider the wider implications of my decision making, which is why I am ensuring that we are delivering on the commitments that we have made to our island communities to deliver those ferries as quickly as possible and ensure that we are continuing to deliver for our shipbuilding communities as well. Without this decision, without this ministerial direction, that would not be possible. I won't take any lectures on ministerial directions from the Conservatives. This particular decision guarantees the future of the yard, guarantees ensures that we are delivering ferries for our communities. Ministerial directions from the Conservatives at Westminster have seen the failed Garden Bridge project, which is an embarrassment for the Conservative party. Of course, in terms of the costs, ministers have been very clear over a long period of time that every effort must be made by Ferguson's to deliver the vessels in the most cost-effective way possible. There are always risks around the delivery of first-in-class vessels and that Ferguson's continued to incur costs related to design decisions taken some time ago under previous ownership. I am also conscious of the impact that inflationary pressures in the wider economy have had upon capital and operational costs. Our due diligence has identified a number of inflationary pressures and other significant pressures, such as design gaps and deficiencies that could increase the cost of complete. As part of our on-going control and scrutiny, the chief executive will undertake a detailed review of remaining costs in light of that due diligence, and I have asked him today to update Parliament in due course. Given the desperate need to get the ferry services operational for island communities, there is really a little option but this with completion and delivery of vessels 801 and 802. What is missing from this statement today is an apology, an apology to the islanders who have been so badly let down, an apology to the workers at Ferguson who have been so badly let down and ultimately an apology to the people of Scotland for the outrageous mismanagement of public funds and public contracts. That is what we should have heard from the minister. We are now on five, six, seven or eight ministers that have had responsibility at some point for the delivery of these new ferries. Will he be the one to take responsibility to see this project through to its completion? Will he bring forward at some point in the future a further statement setting out what is the long-term plan to ensure the sustainability of this yard at Port Glasgow? For what I think was a tacit acceptance that this decision had to be made to ensure that there was a future for the yard and ensure that we delivered on 801 and 802. He did not say that explicitly but I hope that is the case, because otherwise constituents in shipbuilding communities and the island communities will not be able to look in the eye those communities in terms of ensuring that there is a viable future. Labour used to understand the need for this because previous precedence in terms of ministerial authority was given in 2002 when the Campbelltown to Bally castle route was deemed to be project representing very poor value for money in terms of the probable cost and economic benefits. Nobody really knows now what Labour stands for but I hope that that was a tacit acceptance of this need for this decision to come forward. In terms of an apology, Mr Swinney has previously apologised. I, of course, will apologise today to our island communities for the unacceptable delays that there is on the delivery of 801 and 802. Of course I do. As an islander, I more than understand the need for a secure ferry network to serve those islands. What I will not apologise for is taking the decision today that ensures that we deliver on 801 and 802 and give a future to that yard and its workforce. The workers representatives acknowledged that the Scottish Government had saved the yard and jobs of hundreds of workers at Ferguson's, but in looking forward I understand that Ferguson Marine said that it would be looking to offset any potential cost increases through income generated from commercial work. Can the cabinet secretary provide any further update as to the yard's progress in terms of securing that additional important commercial work? I thank Willie Coffey for that question. We know that Ferguson Marine is actively pursuing a range of commercial opportunities and will do everything we can as a shareholder and as a Government to help them to secure those. As the former Deputy First Minister and Foreign Parliament on the 16 March, Ferguson Marine has been seconding some workers to BAE systems since January to support the delivery of its Type 26 frigate programme. We have provided a working capital loan to Ferguson Marine in support of this contract. Ferguson Marine has also recently commenced a larger-scale phase of work for BAE involving the fabrication of three steel units at Glasgow, again in support of the Type 26 programme. We welcome the securing of those projects, which show that Ferguson Marine is back to being a con-serious contender for future work. Just this morning, the Finance and the Security Committee of this Parliament was questioning the Deputy First Minister and the Permanent Secretary about the complete lack of transparency of decision making when it comes to the spending of public money. Of course, Ferguson Marine is the prime example of this problem. It is exactly the same view that is held by the Auditor General. What action is he going to take in his cabinet role to ensure that a scandal of this nature never ever happens again? In terms of transparency, I am making a statement to Parliament at the very first opportunity after the decision has been taken. I am offering myself to scrutiny to Liz Smith and to her colleagues in terms of the decision that I have taken, which I think is the right one for ensuring that we have a future for the yard and ensuring that our island communities are served by good vessels in as timuous a fashion as possible. Of course, there are lessons to be learned quite clearly in terms of the unacceptable delays and the unacceptable cost overruns. We have been upfront about that and we continue to work hard with Ferguson's and our other interests to ensure that those situations do not happen again. I will continue to make sure that I offer myself to Parliament for scrutiny on the decisions that we are taking. Stuart McMillan, to be followed by Neil Bibby. Thank you, Presiding Officer. There has been a lot of spoken and written about Ferguson Marine in recent years. In addition to Opposition politicians criticising the awarding of hulls 801 and 802 to that yard. In addition to that, we are also criticising the work that is not going to the yard. I do appreciate how difficult this decision will have been for the cabinet secretary, but I know that my constituents who are working in the yard will be pleased and know that their jobs are safeguarded going forward. Does the cabinet secretary agree with me that the comments from union representations that the way that this issue has been discussed and the impact that it has on the reputation and the morale of the workforce is less than helpful and would he provide an update as to how many jobs are now both directly and indirectly safeguarded as a consequence of today's welcome decision? First of all, I thank Stuart McMillan for his question and for his continued stout defence of our shipbuilding tradition on the Clyde in his constituency and the engagement that he has had with the workforce. He is absolutely right that the workforce is doing a very difficult job in difficult circumstances. I pay tribute to them and I am looking forward to having the opportunity to meet them as soon as possible, not least to respond to the letter that came from the GMB that Mr McMillan highlights in terms of the public discourse around the issue. Of course, we want to continue to support the yard, support the workforce going forward, and in tandem with Mr McMillan I will continue to do so. In terms of the jobs that are currently in place at the yard, that is around 340, and that is one of the primary reasons why we intervened to save the yard in the first place. The minister has mentioned the importance of improving efficiency at the yard. Alex Rowley and I were at Ferguson's yesterday and both the GMB reps and the chief executive have stated the importance of investing in facilities at the yard to improve efficiencies and help in future work. Given that the Government owns the yard, what will the minister do to improve efficiency by investing in facilities at the yard? People are rightly angry at management receiving bonuses for ferries that are late and over budget. Will such bonuses be paid on the minister's watch and, if so, for what? Cabinet Secretary? I think that Neil Baill will be for his question. I share his anger and that of John Swinney's at bonuses having been paid. There are contractual obligations that made the payment of bonuses unavoidable, but both the chair and the chief executive of the yard are looking at how those contracts can be renegotiated to ensure that that does not happen again. I also concur with his comments around the need to support the workforce and the very welcome meeting that Mr Rowley and Mr Bibby will have had at the yard. I am looking to do the same thing, I am looking to get to the yard to meet the workforce to understand the concerns that they have and also to be able to meet the chief executive in person as well for understandable reasons, including the decision that I needed to take. I had to ensure that that meeting happened after the decision. Neil Bibby's point about investment. We are obviously going to ensure that we continue to see the yard being as competitive as possible in securing future work. We are considering what further investment can be taken, but we are having to consider state aid and subsidy rules that come as part of that. We are looking to make sure that there is a sustainable future for the yard, and we will be taking those decisions as quickly as we possibly can. The vessels will have a vital role to play upon their completion in terms of reducing pressures that existing services are under. Can the cabinet secretary provide any further details as to how the vessels can be best deployed to reduce those pressures? I thank Jackie Barth for that question. The confirmation given today on the delivery of MV GlenSanix and hull 802 sits alongside our commitments to accelerating investments in new major vessels. The four vessels currently under construction in Turkey are intended for deployment on the Islay routes and Little Mint routes from Oog to Loch Madden and Tarber. That creates the opportunity for significantly increased capacity and resilience for the communities served. It also allows consideration of all options to deploy hull 802 on alternative routes, including, potentially, alongside MV GlenSanix, to provide additional capacity to and from Arran in the peak season. All the options will be discussed with island communities at the appropriate time. Will he ready to be followed by Ivan McKee? Presiding Officer, it does not show utter contempt for this Parliament, and for the taxpayer, and for the workers and the islanders. The transport minister left the statement in the middle of the statement and did not even have the courtesy to listen to the questions that have been answered. However, who cares? In for a penny, in for a million pounds. We have had eight years of this utter fiasco, which the Government has soaked to taxpayer, has betrayed the islanders and has utterly humiliated the workers. Yet we have had six ministers in that time. Not one single one of them, including the current First Minister, has lost his job for this fiasco. Will anyone ever face the music for this disaster? I am literally standing here today accountable for the decisions that have been taken. Is Willie Rennie seriously suggesting that if this decision to either progress with 801 and 802 and maintain the future of the yard, that he would have taken a different decision? Is that seriously what he is saying to our island and shipbuilding communities? Because if it is, he will not be able to look them in the eye again. I can make a call to Ivan McKee to be followed by Ariane Burgess. I can ask the cabinet secretary what work the Scottish Government is doing to secure the long-term future of the yard by seeking to find a partner for a joint venture or to buy the yard to use the necessary expertise and experience in the sector. I thank Ivan McKee for his question. As I confirmed in committee last week, we will seek to a return to the private sector for Ferguson Marine. That is consistent with our position since nationalising the business. While we are open to an approach from any credible buyer, we will only divest our ownership in Ferguson Marine when the time and the offer is right for the taxpayer and the workforce and meets Scottish Government objectives. I recognise the historic opportunity that the likes of Scotland represents, including in the supply chain for support vessels. We know that those types of vessels are already in Ferguson Marine's radar and the businesses building relationships with a view to taking advantage of the opportunities that lie ahead. Ariane Burgess, to be followed by Jamie Greene. In the statement, the cabinet secretary has recognised the anger and frustration felt by our Ireland communities in the quality and reliability of the ferry services and that further delay to replacement vessels would heighten that anger and frustration still further. Can he assure me that he will work closely with colleagues such as the Minister for Transport to ensure that the way in which lifeline ferries are identified and brought forward is never again subject to the kind of failure that we have seen in this instance? Yes. I absolutely understand, acknowledge and appreciate the anger and frustration that there is. I have apologised already today in terms of the unacceptable delays and cost overruns that have incurred, but continuing the completion of both vessels will help to ensure that Ireland communities will receive new ferry services quicker than any repercurement of either vessel. As I have made clear today, I have impressed on Ferguson's the importance that we see no further slippage on the delivery of either of those vessels. I will continue to encourage Ferguson's to continue to pursue all relevant market opportunities for the yard and assessment of the new vessel options for routes across our networks being led by CMAL and Transport Scotland and the relevant operators. The two vessels currently under construction at the Turkish yard are progressing well and remain on time and within budget. Recent milestones, including steel cutting and keel laying, are very welcome and bring us another step closer to adding new ferries to the fleet serving the Clyde and Hebrides. Jamie Greene, to be followed by Rona Mackay. Can I politely say to the minister that his hubris today will be matched by the palpable anger on islands on the west coast of Scotland, like those on Ireland? Yes, of course we need these new vessels. We all agree on that. Of course we need jobs on the west coast of Scotland, but it is not controversial to say that we also need these at value for public money, given that the Government so often complains about a lack of it and that our islands are hemorrhaging cash at a lack of reliable and resilient ferry services right across the west coast of Scotland. Can I ask—I have been in this place long enough to see what happened to Presswick airport and the problems that the Government has had in returning it to the private sector—how will the minister ensure that history does not repeat itself? Jamie Greene does not recognise that what he is saying is not too far away from the decision that I have taken. There is a narrow value for money assessment that considers a narrow set of circumstances in terms of a re-procurement of 802 versus with continuing. The minister then has an obligation to consider the wider economic implications of that decision, which I have done. I have assessed that it is better that our island communities are served with these vessels as quickly as possible, which can only happen with the continuation of 802 and that our shipbuilding communities need to see the future of the yard. Actually, I do not think that we are too far away in terms of this decision being the right one for the people of Scotland. Can the cabinet secretary provide any updates as to the planning that is under way in terms of crew familiarisation training to ensure that the vessels can get into service at the earliest possible opportunity upon their completion? This is a normal process that is undergone to ensure that there is a familiarisation of the workforce with the new vessels. It is normal that training is carried out in order to do so. The Scottish Government absolutely values the voice of the workers at Ferguson Marine and throughout the period of public ownership of the yard. There has been regular contact with union representatives and I am happy to continue to commit to this going forward and very much looking forward to speaking to the workforce as soon as possible. I do not need to add to the feelings of betrayal that islanders' views have been given this afternoon. My question is, as 802 is not going to be valued for money, are you still going to commission it using the LNG fuel, which the yard thinks would be a mistake? We are continuing to ensure that we have a dual fuel approach to these vessels and to ensure that they are arrived at as terminally as possible. In terms of the betrayal that Edward Mountain speaks of, I would say that the betrayal that would be felt by our island communities as if I had taken a different decision and saw a further delay to the arrival of those vessels. I think that we have made the right decision for our island communities and our shipbuilding communities to ensure the on-going viability of the yard. That concludes the ministerial statement. I will allow a moment or two for members to reorganise in advance of the next debate.