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Scottish Futures Trust dealt blow Scottish Futures Trust dealt blow
(40 minutes 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 plan for funding major public building projects has been heavily criticised by MSPs.
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. Holyrood's Finance Committee said the Scottish Futures Trust had yet to prove it was a better alternative to PPP/PFI tie-ups with the private sector.
Its members recommended there should be no further delay in building programmes pending its introduction. It said a "broad range" of methods for funding projects like schools and hospitals should be available.
It said a "broad range" of payment options should be available instead. Labour said the findings showed the trust lacked credibility, but ministers defended their plan.
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. Finance Secretary John Swinney told BBC Scotland that PFI costs meant a bill of almost £1bn a year until 2024 by the end of the current parliament.
Members of the cross-party committee recommended there should be no further delay in building programmes.
The SNP members 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.
Conservatives believe that all options, including PPP, should be on the table Derek BrownleeScottish ConservativesConservatives 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. The Scottish Government said the trust would also release up to £150m each year, but Labour deputy finance spokesman David Whitton said: "The SNP thought 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.
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.
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.""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''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. Conservative finance spokesman, Derek Brownlee, added: "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."
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." Mr Swinney said the Scottish Futures Trust would do exactly what the committee had asked it to do - namely delivering value for money in the government's capital investment programme.
A spokesman for the Scottish Government said the recommendations would be studied in detail and a response would be made in the New Year. "That's that task we've set it and that's the task that we'll expect to be delivered," he said
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. Mr Swinney urged caution over the call for a range of funding methods, adding: "What we've got to watch is that were securing value for money for all our public investment.
"Record investment is in place, and the SFT will ensure we deliver maximum value for every pound spent." "What concerns me is that we've got a rising bill coming from PFI - by the end of this parliament we'll be paying nearly £1bn a year until 2024 in PFI repayments and I'm not satisfied that represents the best value for money for the taxpayer."