Finance Secretary John Swinney faces growing pressure from business and his political opponents as he prepares to set out his plans for a new way to finance government capital projects.
Finance Secretary John Swinney faces growing pressure from business and his political opponents as he prepares to set out his plans for a new way to finance government capital projects.
Today he will announce proposals for the Scottish Futures Trust, which he wants to replace the Private Finance Initiative.
The new vehicle for raising funds is awaited by the construction industry as it complains that projects are being delayed by indecision.
The biggest funding project facing the Scottish Government, the new Forth crossing, is the ultimate test of whether the claimed advantages of the Scottish Futures Trust can persuade financiers to invest. An announcement on that will be made by the end of the year.
Mr Swinney was challenged over the bridge yesterday by Patrick Harvie, a Green MSP who is sceptical about the need for it. In a committee hearing, he asked if the £4.2bn price tag could make it the most expensive bridge ever built.
The Finance Secretary said he could not answer that, but technical reports suggesting a slowdown of the current road bridge's corrosion problems did not alter the case for building a replacement.
It will not be clear until 2011-12 whether a dehumidifying process has been successful, leaving "a very genuine difficulty for ministers", though he stressed the technical advice was only of modest success in the battle to slow the rusting process on suspension cables.
On the Scottish Futures Trust, Mr Swinney is expected to give details of a company being created for it, which will start by providing advice to councils and quangos looking for the most efficient ways to raise private finance.
But after the outline case was made last year, its other role, of brokering deals to raise funds while removing "excessive profits" from the deals, continues to confuse, according to those who appeared before Holyrood's finance committee yesterday.
Lynn Brown, executive director of financial services at Glasgow City Council, described the document as vague and "written in consultant speak".
"Who's going to make the decision as to what gets done and why?" she asked, "and who would have responsibility for ensuring projects are delivered on budget and on time after being approved?"
LibDem Jeremy Purvis questioned what new functions the SFT will carry out, at a cost of £17m, when there is already a centre for procurement expertise dealing with infrastructure investment.
He was joined by Dave Watson of Unison, the public sector union, in complaining about the high cost of salaries for the new "quango".
Andy Kerr, the Labour front bencher, claimed questions tabled by opposition MSPs have shown the Futures Trust will administer no funds. It will promote a form of private finance already used since 2002; it gives local government no new funding powers; there will still be profits made out of funding schools and hospitals; and public authorities will continue to pay the bills for up to 30 years.
