THE Scottish Government has pledged to do whatever it can to help the struggling engineering firm BiFab after “disputed payments” sparked a financial crisis there.

Economy Secretary Keith Brown said that while the difficulties centred on a contract between private companies, ministers would “do what we can to help to try to achieve a solution”.

Burntisland Fabrications Ltd (BiFab) says it has been left facing a “critical cash position” as a result of ongoing contracts, and the firm has filed a notice of its intention to appoint administrators.

Despite the fact they may not get paid, staff there have voted to continue working.

BiFab, which makes equipment for both the oil and gas industry and the renewable energy sector, directly employs some 600 people at its yards in Burntisland and Methil in Fife and Arnish on the Isle of Lewis.

Brown said that when contractors and subcontractors were included, 1400 jobs were linked to the firm’s survival.

Asked what the Scottish Government was doing to help, the Economy Secretary said: “This is a contract between private companies and the issues that have arisen have been between those private companies.

“But of course we are very interested and want to do what we can to help to try to achieve a solution.

“At root of course is the future of up to 600 people directly employed and 1400 people in general including contractors and subcontractors.”

Unions claimed the engineering firm’s financial difficulties were a direct result of the main Dutch-owned contractor, Seaway Heavy Lifting (SHL), not paying the company for contract work already completed.

Unite’s Scottish secretary Pat Rafferty said BiFab was being “held to ransom”.

Brown told MSPs: “It’s not so much delayed payments as disputed payments, which may of course lead to a delay in payments being made, that would be the nature of a dispute.”