I WOULD like to correct some misleading reporting ("New details of £45m loan to firm owned by FM’s adviser", The Herald, September 20) surrounding the commercial loans which Ferguson Marine Engineering Limited has received from the Scottish Government.

Whilst it is not my place to comment on the Scottish Government's disclosure of the loan, it is important that the public are aware of the factual inaccuracies in your article, and indeed the wider circumstances surrounding the loans.

Of paramount importance is for the public to understand that any cash pressure on the business has arisen as a result of unforeseen complexities and additional costs in the construction of the vessels. I wish to make it clear that these loans are not bailing out a failing business. They provide vital working capital to smooth the impact of the contract dispute with CMAL and also to help diversify the business.

The article incorrectly attributes the ownership of FMEL to Jim McColl. FMEL is owned by Clyde Blowers Capital Fund III LP. This is a private equity fund comprising institutional investors, both European and American.

All loans are indeed now secured (as a check on Companies House website will establish) and so it is inaccurate to state that “…taxpayers are at the end of the queue”. HCCI are providing refund guarantees/bonds in favour of CMAL (the Scottish Government's wholly-owned subsidiary) for the construction of the two vessels. Without wishing to stray into other debates, the only reason FMEL has had to utilise the services of HCCI for such bonds, is a result of the lack of governmental support (both in Holyrood and in Westminster) for domestic trade in this area, something which other European governments provide.

Your article also states that Ferguson Marine could convert the loan into shares. This is incorrect. Any conversion of the loan is controlled by the Scottish Government.

A visit to the yard would show the huge investment made to re-establish this commercial shipyard, the opportunities the business has both domestic and international, and the social impact that this business is having on Port Glasgow and surrounding areas, not only in terms of employees in the yard, but also surrounding businesses.

Gerry Marshall,

CEO, Ferguson Marine Engineering,

Castle Road, Port Glasgow.