Healthy signs: Construction well under way at the new Forth Valley Hospital at Larbert
The SNP plan to invest £35bn in public projects is the right way to beat the downturn, argues JOHN SWINNEY
EVERY Scottish family deserves the very best schools, hospitals and public transport services. That is why the Scottish Government is mo
ving quickly to invest in Scotland's vital public service infrastructure, with a massive programme of some £35 billion over the next ten years. That means £3.5 billion spent just this year.
It means massive investment that will not only deliver infrastructure, but also vital jobs at a time when we need to do all we can to keep our economy moving.
Our school-building programme is continuing apace, with 250 schools expected to be delivered during the lifetime of this parliament.
More than £1 billion worth of work is under way on major schools projects where construction commenced within the past 18 months, while authorities will also be investing well in excess of another £1 billion in schools over the next three to five years.
At building sites across Scotland, construction is going ahead. For example, work is well under way with the first-class new acute hospital at Larbert and the St Andrews community hospital and health centre.
There are a whole variety of projects in the pipeline, including the Borders rail project and electrification of much of the rail network in central Scotland.
And just last week, I announced that two pathfinder projects – initially in south-east Scotland and then the north of Scotland – are bringing public bodies together in joint programmes of investment, supported by the newly- established Scottish Futures Trust (SFT).
Under the Hub initiative, public investment of £30 million across Scotland is being provided to secure new community health care and similar facilities, with an emphasis on achieving better value to the public purse – one of the key aims of SFT.
It is, of course, my job as Scotland's finance secretary to ensure taxpayers get value for money and the very best public services. That is exactly what SFT will ensure happens. Record government investment is in place; SFT will ensure we deliver maximum value for every pound spent.
And it will deliver private investment on the best possible terms for the taxpayer.
Before this government came to office, costly private finance initiatives (PFIs) were often used to build new facilities around Scotland. This enabled private companies to make excessive profits at the expense of every single Scottish taxpayer. This Scottish Government was determined to find a better way of funding vital projects – and the SFT will help deliver better facilities at a cheaper cost, saving money so we can build more projects.
With the respected banker Sir Angus Grossart as chairman, SFT is developing to find better ways of arranging funds to build the first-class facilities deserved by every pupil, patient and commuter in 21st-century Scotland.
SFT will be focused on delivering improved value for money that I'm sure will be warmly welcomed by those who use our classrooms, hospital wards and transport network on a daily basis.
All the money saved will be ploughed back into building and refurbishing even more facilities.
The need for an alternative to the wasteful PFI schemes becomes even more pressing when you consider the looming introduction of the International Financial and Reporting Standards.
These new rules mean that no longer will such schemes be able to be "hidden" from balance sheets. They will now be counted as an integral part of government expenditure, and as such the SFT model offers the best way of delivering the best value for the public purse and ensuring much-needed investment in schools, hospitals and transport is balanced with prudent management of public finances.
We are clear that in the future, projects will still offer incentives for private investment. But, under SFT, the excess profits which used to mount up in private companies' bank accounts will instead go straight back into the deserving hands of communities where they can make a real difference.
When councils decide to build new projects, they will be able to link up together through SFT so that a Scotland-wide bond can be issued to fund their projects – ensuring a joined-up approach that will help councillors deliver improved services locally.
Taken together, this will ensure Scotland benefits from more effective and better value investment planning.
While SFT is being developed, we are already investing in new projects – with £14 billion to come in the next three years alone.
This kind of investment in the public service infrastructure provides both modern public services and jobs for the construction industry – vital in the current economic climate, as it can help Scotland take early and speedy advantage of any economic recovery.
