Final paragraph of final chapter for Ferguson Shipbuilders?

(Photo: Ferguson's last major private commercial build in 2003 )

There are now real fears over the future of one of Britain's last remaining shipbuilders after the news of further job cuts at Ferguson Shipbuilders on the Clyde.

The struggling shipyard has no new ship orders on its books and the last vessel to be launched there was a small car ferry, the LOCH SHIRA for Caledonian MacBrayne in December last year.

A source at the yard said that 75 jobs were to be axed leaving only a core of 30 employees at the yard. He said the feeling amongst workers was "we're in the final paragraph of the final chapter".

No-one was available at Ferguson's for comment when we tried to contact them yesterday, but the news comes as no surprise.

Shipbuilding orders that traditionally would have went to the Port Glasgow yard have recently gone abroad to Poland where cheaper labour and operating costs make it difficult for British yards to compete.

The company, owned by the Clydeside-based Dunnet family, has had to diversify into other forms of work, including building steelwork for linkspans for the Clyde ferry operators Western Ferries.

The news is bound to fuel anger aimed at the Scottish Executive's procurement policies. Ferguson's have not won a major private commercial contract for a ship since they built a ferry for local firm Western Ferries in 2003 and have come to rely on contracts from Scottish state-owned concerns such as Calmac, Scottish Fisheries and the The Northern Lighthouse Board. However such orders have lately been placed at other yards with agencies citing EU procurement rules.

"Everyone looks after their own and ignores or bends the rules to suit them" said one angered local man, Gavin Stewart, "Why can't we?"

Ferguson's have proved difficult to write-off in the past. The yard has a history of surviving against odds and turning up a trump card at the last minute. The Dunnets are known to be keen to keep the yard afloat, even at personal cost, but observers wonder just how long they can keep bank-rolling the business.

The bleak picture is in stark contrast to the 1990's when Ferguson's were winning contract after contract for a wide range of customers and taking on more workers to cope with a growing order book.

The only glimmer of hope is that Calmac are to build a new ferry for the Islay service and a new fisheries vessel is in the pipeline. Ferguson's could be in the running.

This was indicated in a press release, issued at the time of LOCH SHIRA's launch, which said,

"Ferguson Shipbuilders are currently working closely with Scottish Enterprise building a business development strategy which will look at current workloads, potential to bid for future orders and diversification options. There may be opportunities for Ferguson's to tender for further ferry contracts here in Scotland in 2007. The Scottish Fisheries Protection Agency will also be inviting tenders to build a new Minna Type fisheries patrol vessel. A decision on the successful tender will be made around summer 2007."

Workers at the yard will be hoping the final chapter has yet to be written.