Confusion over EU rules threatens shipyard jobs

Hundreds of jobs at Ferguson’s shipyard in Port Glasgow are at risk because the Scottish Executive (SE) doesn’t understand EU rules, it was claimed today. The yard is fighting for a contract to build two fisheries protection vessels, which the Executive claims must be put out to a tender process – including foreign yards.

This has raised fears the order could go to Poland where, it’s claimed, its shipyards are benefiting from illegal subsidies. However, following clarification by European Competition Commissioner Neelie Kroes in Strasbourg, putting the ships out to foreign tender may be unnecessary. The decision hinges on whether the vessels can be described as “grey ships”, which are quasi-military vessels and are not subject to the full tender process.

A decision will now have to be made as to whether these vessels are commercial or quasi-military. Ferguson yard recently launched the second last ship on its order book.