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Seòmar agus comataidhean

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 21 April 2025
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Displaying 3014 contributions

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Public Audit Committee

Section 22 Report: “The 2023/24 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 16 January 2025

Richard Leonard

Mr Hobbs.

Public Audit Committee

Section 22 Report: “The 2023/24 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 16 January 2025

Richard Leonard

For the record, is the procuring body the Scottish Government, or is it Caledonian Maritime Assets Ltd, which the Scottish Government is the sole shareholder in?

Public Audit Committee

Section 22 Report: “The 2023/24 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 16 January 2025

Richard Leonard

Okay, thank you. I am conscious of the time, so I will move on. Colin Beattie has some questions to put to you.

Public Audit Committee

Section 22 Report: “The 2023/24 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 16 January 2025

Richard Leonard

Okay. Thanks for clearing that up.

I want to go back to the cases involving settlement agreements. You said that there had been three that were above the threshold and two had not been approved. The Scottish Government had clearly taken a dim view of those, and indeed

“has not provided retrospective approval”.

Can I take you to the case that it did approve? In paragraph 14 of your section 22 report, you say that the former chief executive’s employment was terminated “citing unsatisfactory performance”. However, paragraph 14 of the Scottish public finance manual says quite clearly that

“Settlement Agreements should not be used to deal with poor performance”,

so why would the Scottish Government approve such a settlement?

Public Audit Committee

Section 22 Report: “The 2023/24 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 16 January 2025

Richard Leonard

Thank you. I want to pick up on a couple of points relating to Stuart McMillan’s questions to you. Back on 1 June 2023, Mr Miller, the chair of the board of FMPG, had an exchange with the committee in which we asked him about the performance bonuses that seemed to prevail at the time, particularly among the senior management team. He said that they were not performance bonuses but retention payments. I suppose that there are two ways of looking at that. Is it the case that there is no longer a retention payments regime so people are leaving the business en bloc, or does some kind of performance bonus system still exist that applies to members of the senior management team at FMPG?

Public Audit Committee

Section 22 Report: “The 2023/24 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 16 January 2025

Richard Leonard

I accept that process was followed, but the Scottish public finance manual has a certain status, does it not? The situation is probably a reflection on previous inquiries, including those that this committee has conducted, into situations where people have performed badly and, to use a colloquialism, have been rewarded for bad behaviour. They have walked out of a public sector organisation with a large amount of public money by way of a settlement agreement when, in most objective observers’ eyes, they should not have received some kind of reward but should have left with no extra payments other than those that they were contractually due.

Public Audit Committee

Section 22 Report: “The 2023/24 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 16 January 2025

Richard Leonard

To recap the figures involved, the person was originally engaged on a salary of £36,000, which then rose to £54,000. However, what the report documents is that, in the period from February 2023 to March 2024, FMPG was invoiced by the individual’s company for £144,000. That is quite a leap in payment, is it not?

Public Audit Committee

Section 22 Report: “The 2023/24 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 16 January 2025

Richard Leonard

If the individual was seconded from CMAL, I presume that CMAL was party to those agreements.

Public Audit Committee

Section 22 Report: “The 2023/24 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 16 January 2025

Richard Leonard

Stuart McMillan has the final question.

Public Audit Committee

Section 22 Report: “The 2023/24 audit of Ferguson Marine Port Glasgow (Holdings) Limited”

Meeting date: 16 January 2025

Richard Leonard

I want to be clear about what Mr Boyd said. He said that the original £36,000 was the net salary figure. We are looking at the other figures. I presume that the invoice for £144,000 did not take account of the fact that there was going to be a tax liability of £48,000.