THE Scottish Government has defended its decision to take over a shipyard after a new report found there continue to be “unresolved major problems” at the site.

Two ferries due to be built at a Clyde yard are now four years late and the budget has swollen to around two and a half times its original price.

Scottish Ministers awarded two contracts to build Vessels 801 and 802 – intended to serve islands on the West Coast – to Ferguson Marine in Port Glasgow, despite Caledonian Maritime Assets Limited raising serious concerns about the firm.

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The report found there was “insufficient evidence” as to why the contract was awarded to the company – which was later nationalised by the Scottish Government with the intention of securing the delivery of the ships and protecting jobs at the yard.

Auditor General Stephen Boyle said the failure to deliver the two ferries “exposes a multitude of failings”.

He said the process, which has been ongoing since 2015, had shown “a lack of transparent decision-making, a lack of project oversight, and no clear understanding of what significant sums of public money have achieved”.

“And crucially, communities still don’t have the lifeline ferries they were promised years ago,” added Boyle.

The two ferries were due to be sailing by 2018 but have been delayed following the collapse of Ferguson Marine and a contractual dispute between the ferry operator and the firm.

Kate Forbes, the Finance Secretary, has insisted the Scottish Government saved 300 jobs by taking the yard into public ownership.

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She said: “The decision taken to safeguard the future of Ferguson Marine was the right one. Not only did our efforts save the last commercial shipyard on the Clyde from closure, we directly rescued more than 300 jobs and ensured that the two vessels – which are vital for our island communities – will be delivered.

“There is no doubt that getting the vessels completed has been extremely challenging but let me be absolutely clear, these vessels must be delivered as soon as possible. There can be no ifs or buts when it comes to lifeline services for our island communities. I have made that expectation absolutely clear to the Ferguson Marine leadership and Board and we will continue to work closely with the yard to ensure the vessels enter service as soon as possible.

“The procurement process for vessels 801 and 802 was undertaken thoroughly, in good faith and following appropriate due diligence, and suggestions to the contrary are wrong.

“Ferguson Marine continues to evolve and with the appointment of a new, permanent CEO earlier this year, we are entering a new era of shipbuilding on the Clyde. Significant progress is being made and Ferguson Marine is back to being a serious contender for future vessel contracts.”