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Scottish Futures Trust dealt blow Scottish Futures Trust dealt blow
(about 2 hours later)
The Scottish Government's alternative to PFI, the Scottish Futures Trust, has come in for heavy criticism from a committee of MSPS.The Scottish Government's alternative to PFI, the Scottish Futures Trust, has come in for heavy criticism from a committee of MSPS.
A report by the Finance Committe said it had yet to be proved the trust would be a better way of funding schools and hospitals and other public projects. A report by the finance committee said it had yet to be proved the trust would be a better way of funding schools and hospitals and other public projects.
Its members recommended there should be no further delay in building programmes pending its introduction.Its members recommended there should be no further delay in building programmes pending its introduction.
It said a "broad range" of payment options should be available instead.It said a "broad range" of payment options should be available instead.
The SNP members of the committee still have faith in the Futures Trust and its non-profit distributing model, but the majority of MSPs said each building project should be judged separately and the method of finance should be chosen on what offers best value to the tax-payer. The SNP members of the committee still have faith in the trust and its non-profit distributing model, but the majority of MSPs said each building project should be judged separately and the method of finance should be chosen on what offers best value to the taxpayer.
More generally, the committee said there was too little knowledge about the cost of projects, whether financed by government borrowing or by PFI/PPP and there should be agreed methods of measuring risk and performance. Conservatives believe that all options, including PPP, should be on the table Derek BrownleeScottish Conservatives
The Scottish Government has said the trust would cost less than PFI deals with private companies.
Ministers have claimed the trust would release up to £150m each year and improve on current PFI/PPP schemes, which they claimed involved "horrendous" repayments.
It is intended to be a not-for-profit system of accessing funds which, in the long-term, would generate low-interest loans, probably funded by issuing local authority bonds.
David Whitton, Labour's deputy finance spokesman, said the committee's report proved the Scottish Futures Trust "lacked credibility."
He said: "The SNP though this inquiry would back up their claims that public infrastructure projects built using the PPP/PFI funding model were all over budget and making excessive profits for the private sector.
"That has not shown to be the case.
"Instead, the evidence revealed that many projects funded through PPP/PFI were delivered on time and on budget and were good value for money."
'Maximum value'
Scottish Conservative spokesman Derek Brownlee said the report backed his party's view that the public sector should have a wide range of options for investing in public building projects.
He said: "Unlike the SNP, Conservatives believe that all options, including PPP, should be on the table and the public sector should pick the one best suited to delivering the project in question."
A spokesman for the Scottish Government said the recommendations would be studied in detail and a response would be made in the New Year.
He said: "We agree with the committee that there is a need to deliver better value to the public purse in infrastructure investment, which is exactly why we are developing the Scottish Futures Trust.
"Record investment is in place, and the SFT will ensure we deliver maximum value for every pound spent."