First funding projects confirmed

Mr Swinney insisted the trust was moving ahead

The first building projects to be managed under the Scottish Government's policy on new public infrastructure have been announced.

Finance Secretary John Swinney said the Scottish Futures Trust would take charge of two "hub" developments in the south east and north of Scotland.

However, Labour said the SFT had caused a crisis in the construction industry and called for it to be dropped.

The party said it had created a log jam for projects such as schools.

Ministers brought forward the futures trust, which uses a not-for-profit model, as an alternative for PPP/PFI tie-ups with the private sector - which they said had not delivered value for money.

'Boosting' economy

Mr Swinney told parliament the new hubs would bringing together local authorities, NHS boards and other community partners to provide purpose built premises, underwritten by government funding of almost �3m.

But Labour finance spokesman David Whitton said no new contracts had been awarded since the consultation on the trust was announced.

Mr Whitton said: "Is it any wonder that the Scottish Building Federation and others have been appealing to the SNP Government to ditch SFT and allow contracts to be placed using existing funding models, including PPP/PFI."

He added: "The construction industry is in crisis because of the hiatus in building projects."

'Best value'

But Mr Swinney said the SFT was contributing to boosting Scotland's economy.

He said of the announcement: "Community hubs of this kind will demonstrate what SFT is capable of more effective investment planning, procurement and delivery to reduce project costs."

Liberal Democrat finance spokesman Jeremy Purvis also said a lack of clarity had led to delays in building schools and road and rail projects.

Councils, he said, had been "waiting with desperation" for details of the new funding method.

The Tories' Derek Brownlee said bodies should be able to use whichever method of funding was best.

"Our approach is simple and straightforward - the only issue should be developing best value for taxpayers," he said.

"And if the SFT is better value than PPP it should be used. If it's not, it shouldn't."

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