Public sector bodies are to work together on "pathfinder hubs" to plan and deliver the Scottish Government's new model for funding public building projects.

Public sector bodies are to work together on "pathfinder hubs" to plan and deliver the Scottish Government's new model for funding public building projects.

The Scottish Futures Trust, the SNP's alternative to private finance initiatives, will incorporate a number of hubs based around larger towns and cities to deliver community services such as health centres.

Finance Secretary John Swinney announced the plan yesterday during a debate on the Scottish Futures Trust in the Scottish Parliament.

Labour outlined their opposition to the trust while the Conservatives said they wanted more infrastructure not ideology.

Two hubs have been announced in south-east Scotland, including Edinburgh, Borders and East, West Lothian and Midlothian councils as well as Lothian and Borders Health Board.

Another in the north of Scotland, around Inverness, will also be set up, at a cost of £1.4m. It is expected that several others, including one encompassing Glasgow and surrounding council areas, will follow.

The hubs will deal with community-based projects and are not expected to have impact on major programmes like the new Forth crossing.

Mr Swinney, said: "Investment in Scotland's public service infrastructure provides both modern public services and jobs for the construction industry vital in the current economic climate.

"We have an infrastructure investment plan of some £35bn over 10 years but investment is needed now to help Scotland take early and speedy advantage of any economic recovery.

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

"Today's announcement is a significant early milestone in the development of SFT. It follows the appointments of Sir Angus Grossart as chairman and, more recently, two non-executive directors."

Labour said that in the uncertain economic climate, the government should abandon the SFT and instead ensure projects were delivered to help keep people in the construction industry in jobs.

David Whitton said SFT was a "log jam" in construction projects "prevented from getting under way".

He said: "Now is not the time for experiments with new funding models."

Earlier, during First Minister's Questions, Labour leader Iain Gray said SFT was an "embarrassing let down" and urged Alex Salmond to "ditch it".