 Private finance has been used to build and upgrade Scottish schools |
Scotland's largest public sector union has pledged to step up its campaign against the growing use of private firms in school and hospital projects. Unison claims a series of high-profile company failures has set "alarm bells ringing" across Scotland.
The union said it intends to "expose the financial and service failings" of private finance.
It wants councils to be given the choice to find money themselves to invest in services.
'Pick up the pieces'
Scotland's largest teaching union, the EIS, announced last week that it was carrying out a survey among teachers in schools undergoing PPP projects, following claims by some members that inadequate facilities and delays could be affecting pupils' education.
In October, East Lothian's �43m PPP scheme to refurbish, extend and maintain six secondary schools was thrown into disarray when the main construction contractor Ballast went under, leaving many sub-contractors unpaid.
The local authority hopes work on the 30-year contract, which also entails construction of a swimming pool and a community learning centre, will resume next month after Balfour Beatty stepped in to join the consortium just before Christmas.
 |  As we can see in East Lothian, the so-called 'risk transfer' that promoters of PFI proclaim has been exposed as a myth  |
Under a typical school PPP project, the council awards a private sector consortium of various firms a contract to build or refurbish properties and then maintain the facilities over a period of perhaps 25 years or more. While the private sector assumes responsibility for capital costs and the risks involved such as cost and time overruns in construction or failure to deliver an agreed level of service, the local authority in return commits to regular payments.
Unison Scottish secretary Matt Smith said his union intended to "expose the financial and service failings" of private finance.
He added: "As we can see in East Lothian, the so-called 'risk transfer' that promoters of PFI proclaim has been exposed as a myth.
"Instead of the private firm carrying the risks of this �45m project, Ballast's parent company pulled the plug, leaving sub-contractors unpaid, schools unfinished and the local authority having to pick up the pieces."
A spokesman for the Scottish Executive denied that East Lothian Council would face extra costs as a result of Ballast's demise.
He said: "East Lothian Council has said it expects construction to begin in February, bringing major improvements and new facilities to the council's secondary schools in the longer term."
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