INVERCLYDE MSP Stuart McMillan has demanded that ministers safeguard the future of Ferguson’s by directly awarding the shipyard crucial new work.

Concerns have previously been raised about the lack of ship orders on the nationalised yard’s books beyond the overdue and overbudget Glen Sannox and Glen Rosa for CalMac.

Mr McMillan asked wellbeing economy cabinet secretary Màiri McAllan to hand Ferguson Marine a contract to produce seven small vessels for government-owned procurement agency CMAL following a Holyrood ministerial statement about the yard.

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The local SNP politician stated that the future of the yard relied on a direct award of the work, which is part of a wider small vessels replacement programme.

But while the cabinet secretary pledged to ‘leave no stone unturned’ to help the shipyard, she warned Mr McMillan that direct awards were only possible in very specific circumstances.

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She said: “I note Stuart McMillan’s direct plea on behalf of his constituents, and I admire his advocacy on their behalf.

“In the generality, Ferguson Marine is absolutely right to be turning its mind to winning its next contracts.

“Ultimately, decisions on what contracts to pursue are operational matters for Ferguson Marine.

“However, for the government’s part, I am very happy to say that we will do all that we can, as the shareholder, to ensure that the business has a sustainable order book and a future.

“We are currently considering the outline business case for the small vessels replacement programme.

“An update on the procurement strategy will be provided in due course, once a decision on investment has been made.

“I understand the potential opportunity that the small vessels replacement programme offers to Ferguson Marine, but I must restate once again that a direct award is legal only in strictly limited circumstances.”

In an earlier statement to MSPs, Ms McAllan had expressed her disappointment in the latest news about the costs and delivery timescales for the two ferries being built at the yard.

Her predecessor Neil Gray rejected a request for £25m of investment which was submitted by Ferguson Marine’s board last year.

Ms McAllan said she hoped that the board would be successful in revising their proposals, with the new plans expected by the end of this month.

West Scotland Labour MSP Neil Bibby asked whether the cabinet secretary supported a recent assertion from the GMB union that government investment was ‘essential’ to its winning future work.

Greenock Telegraph: Neil Bibby MSP

Ms McAllan replied: “In June, Ferguson Marine provided the Scottish Government with a request for capital investment of about £25 million.

“It presented that as part of its making the shipyard more competitive.

“However, our due diligence concluded that the initial business case did not meet the vital commercial market operator test, which is a key legal requirement if we are to demonstrate compliance with subsidy control rules.

“That is why we are actively supporting the board in recasting its business case and investment plan, and will give close consideration to them when we receive them at the end of the month.”

Glen Sannox is due to be finished by the end of May and her sister ship Glen Rosa is scheduled for handover by September next year, with her launch planned for this April.

It was recently revealed that the costs for the two vessels could now be in the region of £400m, more than quadruple the £96m contract which was agreed in 2015.