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Chamber and committees

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 22 June 2025
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Displaying 1071 contributions

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Public Audit Committee

Written Authority: Completion of Vessel 802

Meeting date: 22 June 2023

Neil Gray

No. That decision was taken by me and Gregor Irwin.

Public Audit Committee

Written Authority: Completion of Vessel 802

Meeting date: 22 June 2023

Neil Gray

No; I did not. That was a collective decision taken in the Government. Gregor Irwin suggested that it was the right—

Public Audit Committee

Written Authority: Completion of Vessel 802

Meeting date: 22 June 2023

Neil Gray

That decision was taken first of all by the director general, and I was asked to confirm it, and so I confirmed that that was the appropriate action to take.

Public Audit Committee

Written Authority: Completion of Vessel 802

Meeting date: 22 June 2023

Neil Gray

Again, I would not want to put words in Mr Irwin’s mouth, but it was not his advice not to proceed, as Mr Hoy has perhaps suggested, although I might be wrong in that regard. It was rather that Mr Irwin wanted my authority to proceed, knowing that there was not a narrow value-for-money case for vessel 802.

I think that Mr Hoy wants to establish that we have brought the required rigour to ensuring that we spend taxpayers’ money appropriately. The Teneo report gives us a significant amount of information, but we also have our assessments of the work that is on-going at the yard. We know the impact that delaying any further would have on island communities and the impact that putting the future of the yard in jeopardy would have on the local economy in Inverclyde and the workforce at the yard. Another important consideration is the need to ensure the best possible future for commercial shipbuilding in Scotland.

Those were all important considerations, as colleagues have acknowledged, and that is why I gave written authority in this case.

Public Audit Committee

Written Authority: Completion of Vessel 802

Meeting date: 22 June 2023

Neil Gray

In the written authority process, a minister does not seek to intervene in order to override a decision with written authority. Rather, an accountable officer—in this case, it was the director general, Mr Irwin—concludes through the green book analysis under the Scottish public finance manual that the value-for-money test or one of the two other elements of the accountable officer process has not been met. He or she then has to seek the authority of the minister—in this case, it is me—to proceed with the work.

There have been cases at the United Kingdom Government level in which ministers have sought to override advice from officials. In this case, however, Mr Irwin concluded that, on the narrow value-for-money assessment, he could not conclude that the work represented value for money, which is one of the three elements that he has to consider. He therefore sought my authority to proceed and I gave it, given the wider considerations that I had to take into account.

Public Audit Committee

Written Authority: Completion of Vessel 802

Meeting date: 22 June 2023

Neil Gray

If I, personally, did something that put at risk the delivery of a Government agenda, of course I would consider my position. However, in this case, the issues that we are talking about, particularly in more recent times, have not been due to ministers or Government issues. As I said in my previous answer, we are facing incredibly turbulent economic factors that are driving supply chain constraints and cost increases, not just for parts but also for labour. As a result, the situation is incredibly unpredictable. Mr Hoy is well aware of the economic situation that the UK faces, and the impact that that has on public contracts is obvious.

I therefore cannot foresee a circumstance where this would be something that I would resign over unless I had done something directly, myself, that had caused any issues. So far, I do not think that that has been the case, Mr Hoy.

Public Audit Committee

Written Authority: Completion of Vessel 802

Meeting date: 22 June 2023

Neil Gray

The Government has been very clear about our view of performance-related bonuses. They are contractual obligations, and I am sure that colleagues on the committee would not wish us to be seen to be breaking contractual law, but we have made very clear to the yard our displeasure at there having been bonuses and at any likelihood of any future bonuses.

A process is on-going as to whether the contracts can be renegotiated in order to see those removed. I hope that that can be the case, because I share the upset and anger of colleagues on the committee, colleagues in Parliament and people in Scotland around those bonuses being paid when there has been such delay and there have been such cost overruns with the project.

Public Audit Committee

Written Authority: Completion of Vessel 802

Meeting date: 22 June 2023

Neil Gray

The figure that is in the public domain is £105 million to complete it, which is part of the overall cost of £202 million to complete it from when the yard was nationalised.

Public Audit Committee

Written Authority: Completion of Vessel 802

Meeting date: 22 June 2023

Neil Gray

No. That is the total cost from when the yard was nationalised.

Public Audit Committee

Written Authority: Completion of Vessel 802

Meeting date: 22 June 2023

Neil Gray

How much has still to be spent, from today?