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Labour sharpens its knives over Scottish Futures Trust



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Published Date: 19 May 2008
THERE was a good deal of disgruntled muttering last week when Alex Salmond, the First Minister, failed to mention anything about the Scottish Futures Trust (SFT) in his statement on taking Scotland forward.
Even though the statement was not meant to be a programme for government, the SFT is a crucial part of taking Scotland forward, because it is the means by which the SNP intends to raise money for major capital projects, such as the £1 billion new For
th road bridge.

It is meant to replace the much derided public-private partnerships (PPPs) used by Labour, which the SNP has said allowed the private sector to profit at the expense of the public purse.

But the wait may soon be over. The Scotsman has been told by a senior SNP source that in just a few weeks' time John Swinney, the finance secretary, will bring the SFT proposal to the chamber.

To say it is eagerly anticipated would be an understatement. There are many MSPs who want a new school in their constituency and have not been shy of complaining that none has been commissioned since the SNP came to power, which has somewhat undermined their claim that they would match Labour's school-building programme "brick for brick".

It hasn't stopped SNP ministers opening new schools commissioned by the last Labour/Liberal Democrat administration and built through PPP, and taking the credit for them. The whisper is that Alex Salmond is due to do that again this week.

But the SFT is most eagerly awaited by Labour, which has adopted a bunker mentality following the referendum antics of Wendy Alexander. Leading Labour figures have been saying to anybody who will listen that the SFT will be the Nationalists' Achilles' heel and they intend to use its presumed failure as a means of exposing the "hollowness" (their new buzz word) of the Salmond government.

Perhaps in anticipation of the SNP's woes, Labour backroom staff have let it be known that they have started a covert internet campaign on the issue.

A message has gone round telling people to put Christine McKelvie's name into YouTube, where an edited clip comes up of the apparently hapless Nationalist MSP on Newsnight Scotland struggling desperately to explain the SFT. Like her colleagues, she struggles to do so, although she is clearly reading (badly) from notes and seems to concede that there is little difference with the SFT and PPPs. The clip ends with a "vote Labour" message and reveals how the opposition intends to try to fight back from a calamitous year and the troubles it may cause the SNP.



The full article contains 444 words and appears in The Scotsman newspaper.
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,

19/05/2008 00:08:22
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19/05/2008 00:30:15
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19/05/2008 00:30:30
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ochone,

Sauchie, Clack's 19/05/2008 00:33:06
Labour seem to forget that there not the only one's who can play theses sort of games.

How about that Mr grey being interviewed by Gordon Brewer re Wendy's referendum that never was?
5

Soosider,

Glasgow 19/05/2008 00:45:05
If you want the true story of PFI/PPP read the article suggested by Wardog in the Sunday Herald, could this be the real reason that Labour and Liberal are so desperate to bring down the SFT initiative.
http://tiny.cc/4dj4D
6

Edward,

19/05/2008 01:54:33
David Maddox, obviously not an investigative journalist
seriously your not, your just trotting out a Labour press breifing. You should be embaressed, especially in light of the Sunday Herald's investigations which has revealed a shocking insight into PFI which has cost Scotland BILLIONS which Labour and the Libdems pushed through when tghey were in power and want to continue to push. Its disgusting!
7

a proud doonhamer,

Dumfries 19/05/2008 02:29:53
I look forward to the parallel introduction of the SNP's Scottish Futures Trust and an independent inquiry into the PPP and PFI contracts awarded by the previous parliaments and local councils. Imagine the confusion in the Labour and LibDems ranks as they try to attack SFT while defending the corruption and waste of the PPP and PFI.

Bring it on.
8

glassbenmhor,

19/05/2008 06:27:41
THE PEOPLE OF SCOTLAND SHARPEN THEIR KNIVES OVER PFI
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19/05/2008 07:34:38
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19/05/2008 07:41:03
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19/05/2008 07:41:42
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Auld Twa,

Edinburgh 19/05/2008 08:03:15
Labour intent on spending more money on hospitals, schools, etc but with most of it going to the private financiers ?
They have no problem about increasing tax on the poor but not the rich .
This is just UK national policy repeated in Scotland.
At least the SNP are trying to make sure that money is spent effectively.
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19/05/2008 08:12:51
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19/05/2008 08:13:49
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cataibh,

Bo'ness 19/05/2008 09:17:01
If a school is built with PPI or PFI is the amounts shown as government borrowing figures?
16

cataibh,

Bo'ness 19/05/2008 09:17:18
If a school is built with PPI or PFI is the amounts shown as government borrowing figures?
17

Rasco,

Inverness 19/05/2008 09:27:20
# 16 The answer is no that is why it is used.My 2 Grand/childern 8 and 3yrs old will be paying for all this,read the Sunday Herald tells all.
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frank mcbride,

lusitania 19/05/2008 10:01:51
#16,17.

Are these posts spoofs?
19

Calum10,

19/05/2008 10:40:35
The Sunday Herald did an exclusive on the Great PFI Theft.

Not only are PFI contractors fixing prices on PFI builds, but PFI investors are getting huge sums in return for small investments.

The Tories have done nothing about PFI thievery, Labour have done nothing about PFI thievery and even the LibDems have done nothing about PFI thievery.

This highlights the Unionist parties as being institutionally corrupt and who are allowing their big business cronies steal from the public purse.
20

antifa,

19/05/2008 11:07:53
The Sunday Herald's stuff on PFI was welcome - though they basically nicked the analysis done by Jim and Margaret Cuthbert which has been around for a while now. So this was hardly an "exclusive".

But the Futures Trust is essentially a minor variant of PFI. The exact same private financiers will be involved. The delivery model will be much the same. The rationale for the policy - to get capital investment off balance sheet - is exactly the same as PFI.

The key difference is that financiers will make their money through returns on interest rather than dividends. Early schemes on this model suggest that finance costs overall (i.e. returns on investment) will be higher on the non-profit distributing model than under PFI.

What we have here is PFI with a new name, one that better fits the SNP's political priorities. Even the SG's consultation paper admits that the model is just a new version of PPP. And the NPDO model which it is based on was actually introduced by Labour in 2003, piloted on the Argyll and Bute grouped schools scheme.

So Labour sees the SFT as a weak point for the Nats? Well, capital investment policy is surely just as problematic for them, since they continue to support the PFI. And most of the things wrong with the SFT are the result of Whitehall-imposed constraints - which necessitate the use of private financing.

21

Nikostratos,

19/05/2008 11:14:48

"Labour sharpens its knives over Scottish Futures Trust"


Given all the publicity we see over young men using knives to murder and maim each other. Is it really acceptable even in a lighthearted manner to portray our politicians as prepared to attack each other with knives to prove a point.

22

donald anderson it's me,

glasgow 19/05/2008 11:34:56
No wonder the Anglocentric papers are declining in in Scotland.
23

Miss H,

19/05/2008 13:44:37
you really wonder what is going on in the Labour Party. They seem to be positioning themselves to defend PFI even after the information that is now in the public domain about the levels of profiteering. Do they not realise that their own core voters are the people most likely to object to that? They are just handing them over on a plate to the SNP. Thanks, guys!
24

Edward,

19/05/2008 14:07:28
It all stacks up, but still people are persuaded by Labour to vote for them – why?
Labour keep harping on about ‘SNP broken promises’ like their needle has stuck!
Why do they do this? Well it’s the old idea that if you keep repeating it a number of times people will believe you.
What are those broken promises?
Now remember the SNP government were elected in 2007, there manifesto is for the lifetime of the parliament, in other words until 2011, so they have 4 years to carry out there manifesto commitments, yet Labour have a problem with this as they expect four years worth of manifesto commitment can be crammed into 1 year (less actually as they started the ‘broken promises’ campaign around six months after the elections!).
Which is interesting as the SNP is a minority government, so need to get legislation through on consensus with the other parties, secondly they really do have until 2011. Compare this with Labour and the LibDems who had been in power since 1999, they didn’t need consensus; they just rammed what ever they were told to do by London. Labour didn’t actually have one single original idea; it all came from London, which explains their current mess.
Take for example Council Tax, the SNP pledged to replace Council Tax with a fairer local income tax, based on earnings and ability to pay. Simply put if you don’t have the ability to pay, you just don’t pay. Now Labour claims this is a broken promise. Which is curious as Labour have gone out of their way to actually prevent it from happening, including having Labour in Westminster block up £ 400 million
Labour now attack the SNP government for the duly elected Scottish Government don’t want to continue PFI/PPP as it literally costs Scots BILLIONS, but Labour are all for costing Scots BILLIONS and have been swindling Billions from the Scottish taxpayer. The SNP Government want to have a fairer financing packages set up so that the people benefit and not big business, strangely Labour are against this. S
25

Edward,

19/05/2008 14:08:25
strangely Labour are against this. Strange for a party that harped on about its Socialist roots!
We also had another revelation that if Scotland were fortunate enough to become Independent, it would have an annual surplus of £ 4.4 BILLION due to Oil and Gas revenues based on today’s prices. Labour doesn’t want anyone to believe in that as thy need to money to pay for their PFI schemes and the debts being run up on projects that don’t actually benefit Scotland.
If anyone has any doubt about this, they only have to look it up
Another revelation at the weekend was the fact that Gordon Brown is literally plotting and has been for the last nine months to destroy the duly elected Government of Scotland. This is what emerged with the continual change of minds of Wendy Alexander. It turned out she had been briefed (as she is always, by Gordon) on the next step to unsettle the SNP Government. Unfortunately she jumped the gun and got carried away with her own ego, with the now famous ‘bring it on’. This exposed Gordon Brown as he was trying to maintain a different façade in Westminster
Time is now running out for Labour in England, the question is has time run out for Labour in Scotland, just how much can Scots put up with Labour?
26

Brahann,

Fife 19/05/2008 14:38:47
Labour Sharpening Knives.... Hmmm More likely to be to commit Hara-kiri over the PFI Scandal. Now there would be some Political progress..
Any Takers?
27

antifa,

19/05/2008 14:53:16
There is nothing remotely socialist about the SFT. It's just PFI with a slight twist - it's still an off-balance sheet funding vehicle based on private finance. Financiers will get their profit through returns on investment rather than dividends to equity, and profitability may well be higher overall.

The plan is vague and badly thought out. It is without any expert support. The HoS made a big play of the Cuthberts' work on PFI, but they have also pointed out that the SFT will make little difference.

Have a look at the submissions to the SG's consultation - nobody has a good word to say about this.

It's a shame really. The SNP is being prevented from doing anything sensible because of Whitehall-imposed constraints. It should be more open about this in my view, rather than pretending that the SFT on current plans makes any sort of sense.

It is a weak point in the SNP's programme and if there's anyone half-decent left among the opposition parties (a big 'if'I admit), they'll take it apart.
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19/05/2008 17:11:03
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19/05/2008 19:17:43
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cataibh,

Bo'ness 19/05/2008 20:11:45
#19 No they are not 'spoofs' I cannot understand where the money for PPI/PFI to build schools is coming from?
Tell me where.
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cataibh,

Bo'ness 19/05/2008 20:11:45
#19 No they are not 'spoofs' I cannot understand where the money for PPI/PFI to build schools is coming from?
Tell me where.
32

Jwil,

19/05/2008 21:52:07
The main question must be; does Labour really want to keep the PFI/PPP system of finance after what we have just heard about the massive profits that are being ripped out of the public purse? If not, what do they propose to replace it?

It will be really interesting to hear Andy Kerr recite the argument for PPP. I think Alex Salmond will have a field day with him.
33

Foulkes Off the CyberNat,

Edinburgh 20/05/2008 09:41:06
5

Dont forget it was John Major who introducted PFI during his term in office.

 

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