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Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 2 July 2025
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Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 9 June 2022

Richard Leonard

The principal item on our agenda is continued consideration of the Auditor General for Scotland’s report, “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”, which is a continuation of the evidence session that we held on 26 May.

I welcome back our witnesses. Colin Cook is the director of economic development in the Scottish Government, and Dermot Rhatigan is the deputy director for manufacturing and industries. Mo Rooney joins us in the committee room today. She is the deputy director of the Scottish Government’s strategic commercial interventions division. From Transport Scotland, we have Hugh Gillies, interim chief executive; Fran Pacitti, director of aviation, maritime freight and canals; and Chris Wilcock, head of the ferries unit.

Before moving to questions, I want to place on the record the committee’s disappointment that we are not joined today by the portfolio accountable officer for transport—the director general for net zero. Section 9 of the Scottish public finance manual is pretty clear about the expectations that are placed on designated accountable officers to give evidence to the committee. We retain the option of calling back the interim DG for net zero at some point in the future.

I remind members and witnesses that, as always, we are up against the clock, so I ask that we try to keep questions and answers as short and concise as possible.

I invite Colin Cook to make an opening statement.

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 9 June 2022

Richard Leonard

That is 11 May. You found that document on the morning of 11 May.

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 9 June 2022

Richard Leonard

Okay. I am sure that people will draw their own conclusions from that.

I will ask about the bit of paper. The reason I asked you what you were asked to look for, Fran Pacitti, is that there is simply a dispute about what the bit of paper constitutes. The Audit Scotland report clearly said in its key messages:

“There is insufficient documentary evidence to explain why Scottish ministers accepted the risks and were content to approve the contract award in October 2015.”

In paragraph 28 of the report, Audit Scotland says:

“We consider that there should have been a proper record of this important decision.”

Do you think that that is what you found?

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 9 June 2022

Richard Leonard

Mr Gillies, you are free to come in at any point in this exchange. I have to say that Transport Scotland’s view is different from that of Audit Scotland.

Another point to consider is that paragraph 5.1.9 of annex 1 to the Scottish public finance manual says that it is the duty of an accountable officer to

“ensure that risks, whether to achievement of business objectives, regularity, propriety or value for money, are identified, that their significance is assessed and that systems appropriate to the risks are place in all relevant areas to manage them”.

Does such a document exist?

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 9 June 2022

Richard Leonard

Fran Pacitti, can you tell me who Alexander Anderson is—or was in October 2015?

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 9 June 2022

Richard Leonard

Nobody knows who Alexander Anderson was, even though he is on those email trails that you unearthed on 11 May.

My understanding is that Alexander Anderson was a senior special adviser to the First Minister of Scotland, and he was copied in on those emails. Again, I ask the question: if you are saying that the decision was entirely for the transport minister, why was the Cabinet Secretary for Infrastructure, Investment and Cities copied in, why was the Deputy First Minister and Cabinet Secretary for Finance, Constitution and the Economy copied in, and why was a senior special adviser to the First Minister of Scotland copied in?

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 9 June 2022

Richard Leonard

The Rural Economy and Connectivity Committee’s report shows that the first of the summary of conclusions and recommendations is:

“Transport Scotland and CMAL applied inadequate due diligence in scrutinising and signing off the procurement process”.

Do you accept that?

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 9 June 2022

Richard Leonard

Again, that seems to be rather at odds with the conclusion that was drawn by Audit Scotland that Transport Scotland had some oversight responsibility for the procurement process. Last time, we heard the mantra from Mr Brannen that it was all about buyer and builder, but this is public money. As an accountable officer, do you not have some accountability for how that money is spent?

09:30  

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 9 June 2022

Richard Leonard

I will put to you a final point, which relates to whether the First Minister was involved, whether through a special adviser or directly or indirectly. In his evidence last time, Mr Brannen was quite clear—it is a pity that he is not here today—that there was no involvement whatsoever of the First Minister, and we accept him at his word. If that is the case, will you give us your understanding of why, when the First Minister was questioned on 29 March by Glenn Campbell of the BBC about whether it was on her say so, and he asked her,

“Did you say ‘go ahead’?”,

her reply was,

“I didn’t say don’t go ahead”?

Why would she not just give an unequivocal Roy Brannen answer and say, “No, I was not involved”?

Public Audit Committee

Section 23 Report: “New vessels for the Clyde and Hebrides: Arrangements to deliver vessels 801 and 802”

Meeting date: 9 June 2022

Richard Leonard

I thank Willie Coffey for his questions. I turn to Craig Hoy, who will pick up on the same theme, so Mo Rooney might be able to come in in response to his questions.