Shipyard director’s ‘verbal’ deal with subcontractor led to tax bill, MSPs told

A “verbal agreement” from the former Ferguson Marine chief executive to a subcontractor led to the shipyard facing a bill for almost £48,000 in unpaid tax, MSPs have been told.

The state-owned shipyard has provided further details of the secondment of a senior manager who later set up his own consulting company, saying the board did not have oversight of the deal.

Auditors have previously highlighted that Andy Crossan, who was appointed programme director working on the two CalMac ferries being built at the yard, invoiced Ferguson Marine for £144,000.

He had initially been seconded four days a week to Ferguson Marine from the ferry-procuring agency CMAL in March 2022.

His salary top-up for this secondment eventually increased to £54,000 a year, though when he set up his company ACC Marine Consulting in December 2022 he charged “significantly more”.

Further details were disclosed in a letter from David Dishon, Ferguson Marine’s chief financial officer, to Holyrood’s Public Audit Committee.

The letter said: “No contract was signed between FMPG (Ferguson Marine Port Glasgow) and ACC Marine Consulting Limited.

“A verbal agreement between both parties on the daily rate was used to create invoices charged from ACC Marine Consulting Limited to FMPG.

“The daily rate is significantly higher than the previous FMPG employment contract.

“This change to employment status did not come for official approval to FMPG remuneration committee, nor did it come to FMPG board, so FMPG board were unaware of this change in employment status.”

Former chief executive David Tydeman was sacked by the board in March 2024 on the grounds of unrelated performance issues.

When Mr Dishon joined the company in April, he investigated the subcontracting arrangement and Mr Crossan’s services were terminated in June.

It’s just the latest scandal in the SNP’s ferry fiasco which has repeatedly betrayed islanders and no nationalist minister has ever taken responsibility for

The Scottish Government and CMAL were notified.

The shipyard later paid £47,961.11 to HMRC for 18 months of underpaid income tax, national insurance and apprenticeship levy contributions.

With Ferguson Marine constructing Glen Sannox and Glen Rosa, the two late and over-budget ferries for CalMac, it finances and leadership have come under intense scrutiny by MSPs.

Glen Sannox entered service in January but there are fears its sister ship could face more delays and cost overruns.

Dr Dishon’s letter also spells out Ferguson Marine’s spending plans for the coming year.

Completing Glen Rosa plus any “under recoveries” is budgeted at £37 million, while a further £9 million will be spent from a Scottish Government fund for capital improvements to make the yard more efficient.

The auditor general has previously told MSPs the increase in Mr Crossan’s pay was “absolutely stark” and took place “without proper checks, balances, controls”.

The head of CMAL has previously described the secondment arrangement as “odd” and said he “wasn’t very happy” when he found out the details.

Reacting to the letter, Scottish Conservative transport spokeswoman Sue Webber said: “Taxpayers will be astounded that almost £150,000 of their money was handed over without any sort of due diligence.

“This payment is a prime example of the dodgy deals that have occurred because of the SNP’s completely dysfunctional running of the yard.

“The public deserve urgent answers as to why this payment was made without any sort of proper procedures being carried out.

“It’s just the latest scandal in the SNP’s ferry fiasco which has repeatedly betrayed islanders and no nationalist minister has ever taken responsibility for.”

Labour’s transport spokesperson Claire Baker said: “This bizarre and murky tale lays bare how dysfunctional things are at the top of Ferguson Marine.

“The yard’s skilled workers are going above and beyond to deliver, but they are being undermined by the chaos and incompetence of those at the top – including the SNP government that created this mess.”

In a statement to the PA news agency, Mr Dishon said: “Under new management Ferguson Marine has done a significant amount of work to strengthen its internal governance and audit function.

“We have acted with transparency in our update to the Public Audit Committee about previous failings in rules and practices and are confident that we are moving in a positive direction.”

A Scottish Government spokeswoman responded to questions on whether it will take legal action, saying: “This arrangement was not approved by the Fergusons board and was discovered following investigation by the shipyard’s chief financial officer and accountable officer.

“Mr Tydeman was dismissed in March last year and governance measures have since been strengthened, with settlement agreements now requiring scrutiny by the remuneration committee and board before referral to the sponsor team.

“Any legal action would be a matter for the board.”