SCOTLAND’S last significant shipbuilder insisted yesterday that it still had a future despite losing a vital contract to a Polish rival.

The announcement that Ferguson shipyard in Port Glasgow had not won the bid to build a new Scottish fisheries protection vessel sparked furious reaction from politicians.

The decision to award the work to the Remontowa yard in Gdansk came amid a row that the Polish operation had been receiving illegal state subsidies. But the Scottish Executive said no evidence of such activity had been uncovered and insisted that European procurement rules prevented it from giving preferential treatment to a Scottish shipyard.

Sharp criticism of the announcement was led by Trish Godman, the Labour MSP for West Renfrewshire, who said that the Executive’s decision was a “black day” for workers at Ferguson, their families and for Port Glasgow, which is in her constituency.

Richard Deane, Ferguson managing director, said the business would bounce back and would continue bidding for other work. “We’re not frightened of the future,” he said. “I wouldn’t say the shipyard is strong in business terms but the owners of the company are determined that we will remain as shipbuilders. They are backing their hopes for the future with their money, so we see no reason why we will not be trading and building ships for the foreseeable future.”

Mrs Godman, also a Deputy Presiding Officer in the Scottish Parliament, said: “I am deeply angry and bitterly disappointed over the weak-kneed betrayal of the men and women at Ferguson by the Scottish Executive. The senior ministers who made this decision should be ashamed of themselves.”

Mrs Godman said that Ferguson had not been looking for a handout but a fair deal amid “questionable EU procurement regulations”. She added: “The Scottish Executive and its officials have cut these men and women adrift in their over-cautious and spineless approach to the EU and its rules.”

Nicola Sturgeon, the SNP deputy leader, said: “This tendering process has been a shambles from the start and now the workers at Ferguson and their families will suffer as a direct result of the First Minister’s failure to protect Scottish interests.”

Annabel Goldie, the West of Scotland Tory MSP, added: “This just shows what a hollow, shallow and meaningless soundbite the Executive’s mantra of a ‘smart, successful Scotland’ really is. The Executive must now tell the beleaguered community of Inverclyde how it proposes to help them with the current economic challenges which have been exacerbated by this very unwelcome news.”

Critics have argued that the fisheries protection vessel order could have avoided the EU procurement route by being classified a “grey ship” — needed to protect the national interest, such as naval vessels. But the Executive has disputed the claim.

Ross Finnie, Environment Minister, said the announcement was disappointing but emphasised that the tendering process had been entered into in good faith. “We have investigated all of the allegations made in respect of the current orders and, on the basis of the information provided to us, we have found no evidence of illegal state aids having been paid to Remontowa,” he said. Ministers were “acutely aware” of the difficulties facing Ferguson, he added.

The Polish yard was also awarded a contract to build a ferry for the Hebridean and Clyde route operator Caledonian MacBrayne.

It was also announced that plans to build another Jura class fisheries protection vessel had been postponed, with tenders now being sought for an inshore Minna class ship instead. Bids have also been invited for a new CalMac Largs-Cumbrae ferry.

Ferguson, which will not be cutting jobs in the wake of the fisheries vessel announcement, said it hoped to announce further non-shipbuilding work in the coming weeks.

Explore UK News

• Crime News

• Education News

• Health News

• Scotland News

Times Recommends

• Family cuts its waste to one binful a year
• Cameron can learn from Thatcher in 1979
• VAT is back ... and it's confusing