Ferguson shipyard faced a row over tendering procedures in 2005

The Scottish Executive has had to stop a tendering process for a fisheries patrol vessel following concerns the procedure broke EU rules.

Ferguson in Port Glasgow was in competition with Appledore in Devon and a German yard.

Fisheries Minister Ross Finnie said the development was "hugely frustrating".

However, the executive said it had no choice but to start the tendering process again.

Last year MSPs had raised concerns over the tendering process, claiming Scottish shipbuilding yards - including Ferguson - were losing out because competing German and Polish yards were receiving hidden state subsidies.

It is clear that the process could be challenged in the event of award of contract given the breaches of EU procurement rules Paul Du Vivier SFPA

In August, the executive awarded a contract to build three vessels for the executive to a Polish yard claiming that European competition laws prevented them from giving "preferential treatment" to a Scottish shipyard.

The troubled shipyard finally won orders from Western Ferries and Caledonian MacBrayne in September and October 2005.

However, it now faces further uncertainty.

The Scottish Fisheries Protection Agency (SFPA) decided to terminate the tendering process for a new patrol vessel after problems were identified with the tendering process.

SFPA Chief Executive Paul Du Vivier said: "We identified problems in the latter stages of the process to secure a second Minna type vessel.

"With the benefit of advice which we commissioned, the agency concluded that it could not advise ministers that it should proceed to contract negotiation stage with this project.

"It is clear that the process could be challenged in the event of award of contract given the breaches of EU procurement rules."

'Executive incompetence'

Mr Finnie added: "While the problem relates to this tender specifically, I have asked the SFPA to review its procurement procedures.

"Until that review is completed I am unable to say when a new tender process will begin."

The Conservatives accused the executive of a lack of transparency in a number of tendering processes it had been involved in.