Government under pressure on firing of Ferguson Marine boss

The Port yard announced the shock termination of Mr Tydeman’s contract on Tuesday, just two years after he was brought in to oversee the delivery of the overdue and overbudget ferries being constructed for CalMac at the yard.

His dismissal was the subject of an urgent question at Holyrood on Wednesday night, with Wellbeing Economy Secretary Màiri McAllan revealing that the board had been considering action to address 'performance-related issues' since February.

Ms McAllan said the board had decided to terminate the now-departed chief's contract on March 18.

READ MORE: Sacked Ferguson Marine boss set for large exit sum

The cabinet secretary was also asked to provide information about a potential further delay to the handover of MV Glen Sannox, but said she did not have ‘sufficient detail’ to update MSPs.

The two ships being built the yard are currently six years late and are set to cost around £400m, more than quadruple the original contract price of £97m.

During the session Ms McAllan repeatedly stated that the decision to sack Mr Tydeman was one ‘for the board’ of Ferguson Marine.

She added that she would be meeting the yard’s new interim CEO John Petticrew to ‘make clear’ ministers’ expectations around the delivery of Glen Sannox and sister ship Glen Rosa.

Further questions followed which centred on the reasons for Mr Tydeman’s dismissal, the amount of severance pay he will receive and whether he had signed any gagging agreement.

Greenock-born Conservative MSP Jamie Greene was among those who questioned the motives behind Mr Tydeman’s removal.

Speaking today, Mr Greene described the ‘secrecy’ around the chief executive’s dismissal as ‘deeply disconcerting’.

He said: “We are now on our third turnaround chief executive of the yard, and the two new ferries are experiencing additional delays as we edge ever closer to their supposed handover date.

“It’s clear that the SNP government is responsible for the delays to the two new ferries, however much they may try to blame Mr Tydeman.

“Ministers must come clean about the circumstances surrounding Mr Tydeman’s sacking, including how much he was paid and whether he signed an non-disclosure agreement.

“Clearly all is not well at the yard, and ministers must be up front about the challenges it faces.”

Tory MSP Graham Simpson, who lodged the urgent question, suggested that Mr Tydeman had been sacked for being ‘too honest’ about the yard’s problems and branded the decision 'disgraceful'.

He said: “He was the man with the impossible job of turning things around where the previous turnaround director had failed.

“In fact, to show what he was up against, last October, he told the Net Zero, Energy and Transport Committee that the design of the Glen Sannox was ‘more complex than a type 26’ [frigate].

“David Tydeman had been in post for only two years. His sacking has sent shock waves through the yard and the industry.

“Màiri McAllan said that it was a board decision, but Ferguson Marine is owned by the Scottish Government, so there is no way that that would have happened without her approval—the buck stops with her.”

Ms McAllan responded: “Graham Simpson can theorise on this matter as much as he likes, but the facts are that this has been a decision for the board of Ferguson Marine, which is in place to provide strategic direction and to hold the executive team to account on performance.

“The board is, of course, aware of the importance that I - and the government - place on delivery, accountability, and the prudent spending of public money."

The cabinet secretary stated that she had been formally notified on Monday of potential delays 'crystallising', and added that the board and new executive team would 'interrogate' the issue.  

On whether Mr Tydeman received a payoff, Ms McAllan said he was entitled to 'contractual payments'.

Inverclyde MSP Stuart McMillan took the opportunity to press the cabinet secretary for an update on whether the shipyard had secured future work. He highlighted calls for the yard to be directly awarded small vessel replacement (SVRP) work by the Scottish Government.

In response Ms McAllan stated: “On the small vessel replacement programme, ministers are considering the outline business case for it.

“It is an important issue and an update will be provided once a decision has been taken.

“However, as I said very recently in the chamber, a direct award of public contracts is possible only in strictly limited circumstances under public procurement rules.

"Ministers are currently considering future vessel contracts from public agencies, including the SVRP.”