Portfolio Question Time – in the Scottish Parliament at on 1 May 2024.
Graham Simpson
Conservative
To ask the Scottish Government, regarding its work to secure a sustainable future for Ferguson Marine, what discussions the net zero secretary has had with ministerial colleagues regarding potential plans for a direct award of the small vessel replacement programme contract to Ferguson Marine. (S6O-03358)
Richard Lochhead
Scottish National Party
As ministers have advised Parliament previously, a direct award of public contracts is possible only in strictly limited circumstances under public procurement rules. Ministers are currently evaluating the business case for the small vessel replacement programme, and all ministers with a portfolio interest in the programme are connected to that in the normal way.
Graham Simpson
Conservative
Before he was cruelly dumped, the former chief executive officer, David Tydeman, produced a series of investment asks of the Government, which could secure the yard’s future. That business plan went to the Cabinet secretary—who is unfortunately not here today—on 5 April. How much is the Minister prepared to invest to upgrade the yard, and does he foresee it getting any Government contracts soon?
Richard Lochhead
Scottish National Party
As, I am sure, Graham Simpson is aware, ministers have also informed Parliament that they are currently considering the business case for further investment. That is an on-going process within Government. Ministers are committed to updating Parliament as soon as there is any progress with that or any news to give to MSPs in Parliament. We are, of course, taking that seriously. We want to do everything that we can to support the jobs, but clearly we have to consider the business case that has been put forward, and Parliament will be updated in due course.
Kenneth Gibson
Scottish National Party
The Minister said that a direct award is, under procurement rules, possible only in strictly limited circumstances. Can he say what those circumstances are?
Has the Scottish Government spoken to United Kingdom counterparts to ascertain whether the UK Government would support a direct order or whether the Subsidy Control Act 2022 would come into play?
When will we have a final decision on the award of that contract?
Richard Lochhead
Scottish National Party
The procurement law requirements under which a contract can be directly awarded are set out in the Public Contracts (Scotland) Regulations 2015. The question of subsidy control compliance also has to be considered separately.
Our consideration of a direct award has, to date, not necessitated engagement with the UK Government. Of course, that may arise—I cannot predict what the case will be. As I said to Graham Simpson, ministers are currently considering the issues and will update Parliament accordingly.
Paul Sweeney
Labour
The Minister referred to the subsidy control regime restricting potential state aid for investment at Ferguson Marine. One of the key asks in the investment plan is a new panel line. There are already two existing panel lines in Scotland—in Govan and Rosyth—as well as a third that is being installed in Belfast. Has he considered that a way around that restriction is to take a sector-wide approach and pool the resources that are available in shipbuilding steel work across Scotland, to draw on for Ferguson Marine’s future programmes?
Richard Lochhead
Scottish National Party
I will certainly draw Paul Sweeney’s point to the attention of the Cabinet secretary, and I am sure that it will be taken into account. All the issues are being considered at the moment. As I said before, a number of specific issues have to be considered in relation to the business case, and Parliament will be updated in due course.
Question Time is an opportunity for MPs and Members of the House of Lords to ask Government Ministers questions. These questions are asked in the Chamber itself and are known as Oral Questions. Members may also put down Written Questions. In the House of Commons, Question Time takes place for an hour on Mondays, Tuesdays, Wednesdays and Thursdays after Prayers. The different Government Departments answer questions according to a rota and the questions asked must relate to the responsibilities of the Government Department concerned. In the House of Lords up to four questions may be asked of the Government at the beginning of each day's business. They are known as 'starred questions' because they are marked with a star on the Order Paper. Questions may also be asked at the end of each day's business and these may include a short debate. They are known as 'unstarred questions' and are less frequent. Questions in both Houses must be written down in advance and put on the agenda and both Houses have methods for selecting the questions that will be asked. Further information can be obtained from factsheet P1 at the UK Parliament site.
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