 A new public sector company will be set up to deliver projects |
A new system to fund the building of schools, hospitals and other public sector projects has been outlined by Scottish ministers. The Scottish Futures Trust would release up to �150m each year and cost less than PPP/PFI tie-ups with private companies, the government has claimed. The scheme would initially be created in partnership with councils. The Tories said the new system would still see private cash put into public infrastructure projects. The cost of PFI contracts - such as Edinburgh Royal Infirmary and East Kilbride's Hairmyres Hospital - has caused concern in some areas, including a recent warning from medical chiefs that some schemes were hitting care. Ministers' plans would see the trust split into public and private sections, the latter of which is likely to be a joint venture between public and private investors. Finance Secretary John Swinney said the SNP's non-profit method - such as the one being used to fund the new Edinburgh-Borders rail link - would be more cost-effective. He added: "The Scottish Futures Trust company will support public bodies in delivering more cost-effective infrastructure for taxpayers. "It means we will get more for our money - more bang for the people's bucks. "With an infrastructure investment programme of some �35bn over the next 10 years, SFT will be central to this government's purpose of increasing sustainable economic growth." A "Scottish bond" would also be issued as part of the trust, with councils working in partnership across the country to issue local authority bonds. Labour dismissed the new move as "PPP with a lick of cheap paint". Public services spokesman, Andy Kerr, said: "We have had 12 months of a financial fantasy whilst our school children and our communities need new facilities. "The Nationalists said that they would match Labour's school building programme brick-for-brick. This proposal will not deliver - it is full of wishful thinking and no extra cash and to describe it as half-baked would be a compliment." 'PFI-lite' Tory finance spokesman, Derek Brownlee, said: "The Scottish Futures Trust will advise on PPP projects, and a private futures trust will be established to provide private investment. "However, it is dressed up, the key principle of PFI/PPP is maintained - leveraging in private investment into public infrastructure." The Liberal Democrats claimed the announcement amounted to an admission that what had been promised in the SNP's manifesto was not possible. Finance spokesman, Liam McArthur, said: "The only thing about the Scottish Futures Trust which they haven't changed is the name. "One year on from the election and the first recommendation is for a further review." Public sector union Unison voiced concerns that SFT would continue with private sector funding and running of public services in the same way as PFI. Scottish secretary Matt Smith said: "It is merely 'PFI-lite'. "No amount of spin can change the fact that the private sector will continue to build, design and run public services under this plan, and they will continue to take a profit out of our essential services." The futures trust scheme is expected to be fully up and running by 2009.
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However it is dressed up, the key principle of PFI/PPP is maintained
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