THE Ferguson ferries scandal has resulted in the people of Scotland being 'badly let down' amid an operation 'riddled with failures', a panel of MSPs has concluded.

A damning report by Holyrood's Public Audit Committee points to a breakdown in governance, transparency, accountability, communication and record-keeping.

The committee also points to 'serious failings' by Transport Scotland — including what it describes as a 'weak and toothless' steering group led by the Scottish Government department.

There was also a 'consistent failure' by Transport Scotland to accurately and timeously reflect the concerns of ferry procurement quango CMAL to Scottish Ministers, the committee says.

Convener Richard Leonard MSP said: "The people of Scotland have been badly let down by this project. There have been collective failures at government and agency level from the start.

"It has been dogged by a lack of transparency; by ineffective governance arrangements; by poor record keeping within the Government; and by baffling communication failures.

"Throughout our scrutiny, we took a wide range of evidence, navigating our way through many conflicting perspectives to reach the conclusions set out today.

"We had to battle to get some of the information we needed. Sadly, despite our best efforts, some questions remain unanswered."

Mr Leonard added: "We recognise the efforts by the Scottish Government to protect jobs at Ferguson Marine and commend the workforce for their resilience during what has been and continues to be an extremely challenging time. Their experienced voices should have been listened to from the outset.

"It is vital that lessons are learned. That means much needed reform of governance arrangements for future vessel projects.

"But it also means a change in the way the Government and its agencies conduct themselves and are accountable to Parliament and the people.

"That is a challenge for the Permanent Secretary and the new First Minister."

It was confirmed last week that MV Glen Sannox and Hull 802 — which are already more than five years behind schedule — will be further delayed.

The soaring cost to taxpayers of the fiasco, which had an initial pricetag of £97 million, last year reached £338 million.

Ferguson's chief executive David Tydeman confirmed that completion costs for Glen Sannox alone stood at £101m, while the price of Hull 802 was £108.6m.

It means that the build cost of the flawed project under nationalisation is £209.6m — up by £84m since March.

However, when £83.3m of 'milestone' payments made to the yard when it was owned by business tycoon Jim McColl, plus £45m of Scottish Government loans are taken into consideration, the bill to taxpayers has reached £338m.

It emerged last week that £87,000 in bonus payments had been made to bosses at the nationalised Port Glasgow shipyard.

Deputy first minister John Swinney described the bonuses in the wake of a failure to complete long-delayed lifeline ferries as 'reprehensible'.