Cost-effectiveness is the motto of the Scottish Futures Trust (SFT). The essence of the SNP�s programme for funding public infrastructure through private investment is that it will deliver better value for the taxpayer than Labour�s Public Private Partnerships (PPP) or the earlier Private Finance �Initiative (PFI) initiated by the Conservatives.

Cost-effectiveness is the motto of the Scottish Futures Trust (SFT). The essence of the SNP's programme for funding public infrastructure through private investment is that it will deliver better value for the taxpayer than Labour's Public Private Partnerships (PPP) or the earlier Private Finance Initiative (PFI) initiated by the Conservatives. Both accelerated the delivery of much-needed public sector projects, but at the cost of long-term repayments, currently running at £500m and set to increase to £800m in 2011. Two hospital contracts in particular, for Edinburgh Royal Infirmary and Hairmyres Hospital in East Kilbride, prompted anger that the cost has impacted on health board budgets and although parking charges have been scrapped at hospitals, they remain at PFI-built ones.

The blueprint for the replacement of PPP by SFT, however, has been sketchy, prompting criticism that it amounts to no more than a rebranding exercise. The announcement that Sir Angus Grossart, former vice-chairman of the Royal Bank of Scotland, who has extensive boardroom experience in both the private and public sectors, has "put his shoulder to the job" of chairing the Scottish Futures Trust gives the scheme a sudden credibility boost. The appointment of such a seasoned player in the financial world should help to attract others with real expertise to serve on the board and in turn inspire confidence among potential investors. Just as significant is the view among close observers of the workings of PFI and PPP that this level of commercial experience will give those negotiating on behalf of bodies such as councils and health boards the ability to drive a much harder bargain with the companies that build and operate the facilities.

With a £35bn programme of public works to build and refurbish schools, hospitals, rail and road developments due to be carried out over the next 10 years, ensuring best possible deal for the taxpayer is essential. At £4.2bn, the new Forth crossing is the biggest funding project facing the Scottish Government and will be the litmus test of whether the the SFT can persuade financiers to invest. With the SNP's original intention of funding SFT from bonds unrealisable because the Scottish Government does not have the power to issue bonds, much will hinge on whether councils, health boards and other public bodies will form consortia to do so. That will only be likely if there is confidence in the overall mechanism. The detail still remains frustratingly elusive, but it was clear from Finance Secretary John Swinney's statement yesterday that some elements from the previous schemes, including a repayment period of 25 to 30 years, will remain. If Mr Swinney is to realise his forecast that SFT will release up to £150m a year for re-investment and overcome criticism that all he has done is set up an expensive new quango, he must provide details of how the new framework will operate before Scotland's much-needed new infrastructure is stalled by uncertainty.