To ask the First Minister whether he will provide an update on whether the Scottish Government will instigate a direct award to Ferguson Marine for the replacement of MV Lord of the Isles. (S6F-04505)

The procurement process for the replacement of MV Lord of the Isles engages complex legal and subsidy control issues. Any decision must take into account the responsibility that we have to secure the best outcomes for our island communities and businesses. We are currently considering the business case and next steps in relation to MV Lord of the Isles replacement and we will confirm those in due course.

The presence of Ferguson Marine and its workforce is important to my Constituency. The only way that that presence can continue is by ensuring that the yard has a strong order book. Making the yard efficient and effective and winning new orders is the responsibility of the new interim chair and management team, who are supported by the Scottish Government in those endeavours.

I am very aware of the arguments about why the issue of a direct award is extremely challenging. However, I am also conscious that the investment that the Scottish Government has already made in the yard will be lost for good if the yard does not have an order book. Will the First Minister commit to a direct award for the replacement of MV Lord of the Isles? That could lead to securing further work, if the board and management are successful, which would keep Ferguson Marine firmly rooted in Port Glasgow, creating employment and building ships.

I am very supportive of securing a future for the Ferguson Marine yard. More than 10 years ago, I worked hard to ensure that it survived the difficulties that it faced at that point, and the Government has given the yard sustained support over many years.

As I indicated in my earlier answer, the issues around the MV Lord of the Isles direct award are complex and involve significant subsidy control issues that the Government cannot ignore in any way, shape or form. However, I give Mr McMillan the assurance that the Government is absolutely committed to working with Ferguson Marine to secure its future.

Ferguson Marine’s future depends on it independently securing work both from the United Kingdom and overseas. It is a Scottish National Party Government-owned yard, so what action is the First Minister taking to ensure that it is competitive, restores its reputation for delivering projects on time and under budget, and can procure its own work rather than relying on a direct award?

That is part of our ensuring that the yard has leadership and a workforce in place to support the direction towards its being able to attract orders and operate competitively in international markets. That is what Government support for the yard is all about and the focus of our interventions will be to ensure that that remains the case.

There is a strong economic and social case for a direct award to the yard, and I urge the First Minister to support such an award. A decision on the contract has been delayed for far too long and the workforce deserves clarity, so will the First Minister undertake to ensure that there is a speedy decision? If he cannot commit to a direct award of the contract today, will he commit to supporting Ferguson’s through other avenues, such as the second round of the small vessel replacement programme, and the delivery—in full—of the promised £14.2 million investment?

As I indicated in my earlier answers—and I think that Katy Clark will appreciate these points—there are complex issues of a legal nature, in relation to subsidy control, that the Government simply cannot ignore. I am enormously sympathetic to and supportive of a future for the yard. That is why the Government has committed investment to support the yard, which will be available to the yard at the moment when it is appropriate for it to be deployed. We are open to working with the yard to strengthen its competitive position to enable it to win vessel contracts and take those forward on an on-going basis. That remains the focus of the Government’s Intervention on the issue.

Does the First Minister agree that, whatever solution is found to the tender in question, the decision must be informed by the views of people in Uist and other island communities, who clearly want to see new vessels in service as soon as is feasible?

I understand and support that point. It was under this Government that the connection was established between Mallaig and Lochboisdale, which is the route on which MV Lord of the Isles primarily operates. I know how important that connection is to Dr Allan’s constituents in South Uist and surrounding communities. It is important that we reflect on the necessity for sustained connections for all island communities. That lies at the heart of the Government’s strategy in relation to the Clyde and Hebrides ferry services.

We move to general and Constituency supplementary questions.