Scottish yard rescue expensive

Attempts to rescue Scottish shipyard Ferguson Marine Engineering including putting the yard into state ownership could be more expensive that thought as the yard’s debts to the government are bigger than initially estimated. The yard went into financial administration in August this year with debts of 74.6 million pounds (US91.8 million) and assets of 97.7 million pounds. The yard was then taken into temporary state ownership by the Scottish regional government. A statement of affairs prepared by the financial administrators Deloitte shows the Scottish regional government is owed 49.8 million pounds and the British tax authorities another 426,000 pounds. The debt to the Scottish government is about 5 million pounds more than previously thought. The yard will remain under temporary ownership of the Scottish regional government while administrators seek a private buyer. However, the Scottish government has said it are ready to nationalise the yard fully it if no credible bid comes forward in order to safeguard 350 jobs. The yard was taken over in 2014 and quickly won a 97 million contract for two innovative dual-fuel ferries from Scottish state-owned shipping company Caledonian Maritime Assets Ltd (CMAL). The order proved disastrous, with unplanned design changes, two years of delays and arguments over money as the costs over-ran by 100%. CMAL was blamed by Ferguson for the design changes, while CMAL insisted Ferguson's had to deliver the vessels on a fixed price contract. Despite the Scottish government lending Ferguson's 45 million pounds in loans to keep it in business, the yard continued to suffer acute cash flow problems. A Scottish government spokesman said: "At all points the Scottish government has acted to ensure the completion of the ferry contracts, the protection of jobs and a future for the Ferguson shipyard and that remains our priority."