4th March 2026
The Scottish Government has continued to award Ferguson Marine new contracts to keep the yard alive, protect jobs, and ensure Scotland retains domestic shipbuilding capacity, even after the ferry fiasco. The decision is controversial, but ministers have laid out several reasons that explain why it happened.
Why the Government Pressed Ahead With New Contracts
Preventing the Yard's Collapse
Ferguson Marine is the last commercial shipyard on the Clyde. After the ferry overruns and delays, the yard had no new orders and was facing closure once the Glen Rosa was completed. Awarding four new vessels was described as a "lifeline" to keep the business afloat and avoid mass redundancies.
Creating a "Clear and Credible Pipeline" of Work
Deputy First Minister Kate Forbes said the yard needed a steady pipeline of work to survive. Without guaranteed contracts, the yard could not plan, invest, or retain skilled workers. The government argued that direct awards were necessary because the yard had recently failed to win contracts through open competition.
Strategic Importance for Scotland
Ministers framed the decision as a "bridge to the future" for a publicly owned strategic asset. Losing the yard would mean Scotland becoming entirely dependent on foreign shipbuilders for ferries and marine vessels.
Supporting New Vessel Programmes
The new contracts include:
Two small electric ferries for CalMac
A marine protection vessel
A research vessel
These projects are part of wider government programmes to modernise the fleet and environmental capabilities.
Political Pressure to Fix the Ferry Network
The ferry fiasco created huge political fallout. Awarding new contracts to Ferguson Marine is also part of a broader attempt to stabilise the ferry system, including buying Ardrossan harbour to address infrastructure issues linked to the delayed vessels.
The Bigger Picture
Why This Is Still Controversial
The Glen Sannox and Glen Rosa ended up nearly four times over budget, making the decision to award more work politically risky.
Critics argue the government is rewarding failure and bypassing competitive tendering.
Supporters say closure would cost more in the long run—lost jobs, lost skills, and higher future ferry costs.
What This Means Going Forward
The government has signalled that Ferguson Marine may eventually be privatised, with the new contracts intended to stabilise the yard long enough to make that possible.
Deputy First Minister Kate Forbes said the announcement built on the strong foundation set by Ferguson Marine's new senior leadership team and the continuing commitment of the workforce.
Ms Forbes said:
"Now is the time to invest further in Scottish shipbuilding and bolster confidence in the future of Ferguson Marine.
“This is a watershed moment. Fulfilment of the proposed programme, subject to due diligence processes to assess viability, would secure a pipeline of work and allow the shipyard to move ahead with its modernisation plans while pitching for additional orders on the open market.
“Since bringing the company into public ownership, the Scottish Government’s goal has been for Ferguson Marine to become a competitive, thriving business which extends the long history of world class commercial shipbuilding on the River Clyde.
“My announcement today supports that ambition and sets a clear course for the future. We rescued Ferguson Marine for a purpose and we are determined to see it succeed."