A new report from Ferguson Marine has raised serious questions about the future of the state-owned Port Glasgow shipyard, highlighting significant uncertainties about ongoing government support needed to maintain operations.
The shipyard currently has no secured work beyond the completion of MV Glen Rosa, which is scheduled for delivery in September 2025.
The facility’s only guaranteed income is Scottish Government funding until 2026.
The situation appears increasingly precarious as Audit Scotland recently warned about the yard’s uncertain future, with Auditor General Stephen Boyle stating: “The future of the Ferguson Marine Port Glasgow shipyard remains uncertain.
Currently the yard hasn’t secured any future work or income, beyond the delivery of the Glen Rosa.
The Scottish Government has indicated some financial commitment, with Deputy First Minister Kate Forbes announcing that the government is prepared to invest up to £14.2 million over the next two years.
“The draft 2025/26 Scottish budget allocates £46 million to Ferguson Marine for the completion of Glen Rosa to support the yard’s planned capital investments, pending parliamentary approval,” Forbes stated.
The shipyard’s business challenges are compounded by governance issues, including recent concerns over employee exit packages that exceeded public sector thresholds.
An internal investigation revealed procedural failures that resulted in the company having to repay £48,000 to HMRC due to underpaid income tax.
The yard’s future competitiveness remains in question, with ongoing investment needed to make it competitive and generate future income.
Edward Mountain, convener of Holyrood’s Transport Committee, said the government “do not appear to understand the seriousness of the situation”.
He said: “Until the Scottish Government take the future of Ferguson Marine seriously, it will be impossible to recruit a chief executive and retain the many talented staff that work there, who will drift away to other opportunities offered to them on Clydeside.”
Interim chief executive John Petticrew said: “We are confident that, in partnership with the Scottish Government, we can secure a sustainable, long-term future for Ferguson Marine for the benefit of its workforce and the wider local community.
“We are actively exploring opportunities to secure more commercial work, including but not limited to the small vessel replacement programme and are hopeful that we will be successful in securing more work for the yard.
“In the meantime, Ferguson Marine remains focused on delivering MV Glen Rosa as quickly and efficiently as possible to support and serve Scotland’s important island communities.”
FMPG is currently one of six firms invited to tender for the Scottish Government’s small vessel replacement programme, after earlier plans for direct award proved impossible due to UK subsidy laws.
