NICOLA Sturgeon has told MSPs the CalMac ferries fiasco is a matter of “considerable regret” and “not what anyone would have expected” when the boats were ordered in 2015.

The First Minister told Holyrood’s Public Audit Committee she was “acutely aware” of the "significant impact" of the delays to the ships on the island communities they were meant to serve.

She was speaking at the start of a grilling over failings in the procurement of two ferries from the Ferguson Marine yard on the Clyde.

The state-owned ferry procurement body Caledonian Maritime Assets Limited (CMAL) placed a fixed-price contract for two dual-fuel boat for £97 million from Ferguson's in August 2015.

The boats were supposed to have been delivered to the state-owened ferry operator CalMac by mid 2018. 

However they are still under construction and the cost has risen to nearer £300m.

The Glen Sannox, formerly Hull 801, and the as-yet-unnamed Hull 802 are now due to be delivered in 2023 and early 2024.

A series of disputes over designs and delays saw relations between CMAL and Ferguson’s break down, and the yard went broke and was nationalised in 2019.

In March this year, the public spending watchdog Audit Scotland said there had been a “multitude of failings” in the delivery of the two ferries.

Former transport minister Derek Mackay, who signed off the deal despite Ferguson’s being unable to deliver an industry standard refund guarantee that would have protected taxpayers in case of problems, has denied the contract was awarded for political reasons. 

Ms Sturgeon said this morning: “I think it's important to say at the outset that I am acutely aware that the delay in vessels 801 and 802 is having a very significant impact on island communities. That is a matter of considerable regret.

“And I absolutely recognise the decisions around the procurement of these vessels and the progress - or lack of progress - on these vessels since and the Scottish Government's broader support for Ferguson’s shipyards are areas of very significant interest and concern.

“The issues here are obviously complex and they span a period of several years.

“I would take the opportunity to record my thanks to Audit Scotland for the work that it did in preparing the report that has of course led to the committee's inquiry. 

“That has been, I think, an important part of this scrutiny process. 

“And to be clear, the Scottish government accepts all of the recommendations in the Audit Scotland report. 

“And of course, we also accept unreservedly that the outcome in relation to these vessels is not what anyone, including the Scottish Government would have expected at the point of contract award. 

“It is, of course inevitable, and I think it is understandable that decisions taken at different points - contract award and thereafter - are now seen through the prism of what has developed since. I understand that.

“However, in seeking to make judgments or to set out the basis of decisions taken, it is important to consider what was before ministers at particular points, and I'll seek to provide as much insight into that as I can. 

“Obviously I'm happy to address concerns around the announcement of Ferguson’s as the preferred bidder, the subsequent award of the contracts the issues around the builders refund guarantee, milestone payments, dispute resolution process, also happy to address issues around the loan payments made by the Scottish Government and the progress of the vessels since the yard came into public ownership

“Obviously this is still a live project  -regrettably so - and the Scottish Government remains absolutely committed to delivering both ferries and supporting island communities that rely so heavily on vessels of this tape on a daily basis.”

Appearing at the Edinburgh fringer this summer, Ms Sturgeon denied the ferries saga was a "scandal", calling it a "situation" instead.