Scottish Futures Trust, PFI Replacement, Scotland, Scottish PPP, News

PPP Replacement : Scottish Futures Trust

Public-Private Partnership – Private Finance Initiative

Scottish Futures Trust News

The Scottish construction industry has called upon the Government to fast track the Scottish Futures Trust to help end the job losses in the sector.

Scottish Ministers launched a consultation on a replacement for PPP/PFI late in 2007. Their non-profit distributing model is intended to remove perceived ‘excessive’ profits from public infrastructure projects.

However, many in the building trade have expressed concerns that the refusal to sign new PFI contracts while the new system is put in place is exacerbating the economic crisis sweeping the construction industry.

Speaking ahead of an expected announcement to pilot the Scottish Futures Trust today, Michael Levack, Chief Executive of the Scottish Building Federation said: “The Scottish Government should fast track their new proposals and let industry get on with the job of building the new schools, hospitals, roads and infrastructure we need.

“While I understand that the Government need to get it right, the construction industry needs it right now. Since the SFT consultation closed in March more than 15,000 construction workers have been made redundant in Scotland. Our industry cannot afford for projects to be mothballed while Ministers pilot an untried and untested finance model.

“SBF wants to work with Ministers to make the SFT work however the scheme should not be allowed to become a brake on investment or exacerbate the economic problems our industry faces. That is why we are calling on the Government to be bold by allowing councils and health boards to use existing PFI models to bring forward new schools and hospitals now. Only once SFT is up and running should we consider closing the door on PFI once and for all.

“Until then Ministers should be doing everything in their power to deliver value for money and provide security for the 225,000 working in Scotland’s construction industry.”

Location: Scotland