Scottish yard to be nationalised for long term

The yard Ferguson Marine in Scotland is to be nationalised for the long term after financial administrators rejected three commercial bids for the shipyard. The Scottish regional government, which took over temporary operation of the yard under a management agreement earlier this year, is now to take on long-term state ownership of the yard. Scottish ministers said the three commercial bids were rejected because nationalisation was a better outcome for the yard and creditors. Nearly 50 million pounds (US$61.2 million) of taxpayer loans to Ferguson Marine have been written off. A statement issued by the Scottish government said administrators had concluded that three initial offers for Ferguson Marine were either "not capable of being executed or do not represent a better outcome for creditors". Ferguson went into financial administration following a dispute with Scottish state-owned ferry company Caledonian Maritime over the construction of two 97 million pound (US$118 million) ferries. Scottish regional economy minister Mr Derek Mackay said: "We have always been clear that we want to complete the vessels, secure jobs and give the yard a future. Administrators have concluded that despite other bids being submitted for the yard, the Scottish government's offer presents the best outcome for creditors. While there is still more to be done, our actions have ensured that there will be a future for Ferguson." Administrators are now in discussion with Scottish ministers to agree final terms of a sale and expect this to be executed within the next four weeks. Scottish businessman Mr Jim McColl, the former owner of the Ferguson shipyard, had indicated he was ready to resume involvement in the yard. And earlier this month Ferguson shipyard was part of the consortium which won the 1.25 billion pound contract to build five Type 31 frigates for the British navy. However, it is unclear how much of this work will be carried out by Ferguson. About 300 people work at the yard.