Government reject offer for yard

Want to read more?

At the start of the pandemic in March we took the decision to make online access to our news free of charge by taking down our paywall. At a time where accurate information about Covid-19 was vital to our community, this was the right decision – even though it meant a drop in our income. In order to help safeguard the future of our journalism, the time has now come to reinstate our paywall,

However, rest assured that access to all Covid related news will still remain free. To access all other news will require a subscription, as it did pre-pandemic.

The good news is that for the whole of December we will be running a special discounted offer to get 3 months access for the price of one month. Thank you for supporting us during this incredibly challenging time.

We value our content and our journalists, so to get full access to all your local news updated 7-days-a-week – PLUS an e-edition of the Arran Banner – subscribe today for as little as 48 pence per week.

Already a subscriber?

 

Subscribe Now

An offer to hand a share of ownership of the Ferguson Marine shipyard to the Scottish government has been rejected, according to reports this week.

The owner of the Port Glasgow yard’s where the MV Glen Sannox is being built, Clyde Blowers Capital, is said to have tabled the new proposal last week.

According to the BBC it also presented legal advice, commissioned by Clyde Blowers Capital, that the proposed deal would be within European rules on procurement and state aid – the extent to which governments are allowed to intervene in support of businesses.


But that advice is said to have been flatly rejected by the Scottish government, saying it is obliged to seek the lowest cost option.

Instead it is claimed it could use a clause in the £45m of loan agreements between the Scottish government and Ferguson Marine Engineering Limited (FMEL), through which it could take over the yard for only £1, which would avoid administration.

The decision either means there has to be more injection of capital from Clyde Blowers, to cover the extra cost of the ferry contract, or the nationalised takeover of the business by the Scottish government.

Either way there yet seems to be a way out of the impasse which has seriously delayed the completion of the MV Glen Sannox, bound the the Ardrossan to Brodick route and her sister ship, only known as Hull 802.