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Burning Issue: Should Alex Salmond go to the Middle East to fund Scottish public projects?



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Published Date: 29 September 2008
Yes

ALEX NEIL SNP MSP and member of Holyrood's finance committee


The SNP are working toward a fairer and wealthier Scotland. As part of that, we are consistently working to secure new jobs and investments for Scotland, and to build the infrastructure that can deliver economic growth.

With people around the
world having a strong affinity for Scotland, building our trade links is an essential part of making Scotland a wealthier nation.

Already the Scottish Government is delivering an impressive series of infrastructure projects and, importantly, is doing so without creating the extreme profits for private sector investors that were allowed to escalate wildly under the previous Labour administration.

In building Scotland's infrastructure, it is vital we secure the best possible value for the taxpayer. That's why the Scottish Government will no longer use ridiculously expensive PPP and PFI schemes backed by Labour, which deprive communities of access to their assets.

The Scottish Futures Trust, chaired by the well respected financier Sir Angus Grossart, is an essential part of delivering that value for money, making sure the benefit to taxpayers comes before the profits of private investors.

Last week the SNP Government was not only promoting Scottish business and tourism in the USA, but it was also building business links in Hong Kong, putting Scotland on the world stage. With global financial markets increasingly dominated by countries in the Middle East and Asia, the First Minister's plans for a visit to Qatar will be welcomed by all those with an interest in seeing new jobs and new investment in Scotland.

No

ANDY KERR MSP and Labour finance spokesman


Alex Salmond's plans for a Scottish Futures Trust are in ruins. In opposition, the SNP promised to match Labour's investment in new schools "brick for brick".

Since they won the election, we have had 18 months of wasted time, in which ministers have failed to commission a single new school. Alex Salmond promised dynamism, but he has done nothing but dither, and our children are paying the price.

When SNP ministers came to Parliament, they offered precious few details about the Scottish Futures Trust.

Instead, we were dazzled by the appointment of leading banker Sir Angus Grossart and told that this "poacher turned gamekeeper" would sort it out.

Alex Salmond is reported to be travelling to Qatar to seek funds for the new Forth Road Bridge and other major infrastructure projects.

If he expects to be received with an open cheque book, then good luck to him, but here too he may have dithered too long, as much of these sovereign funds have been affected by the global credit crunch.

This visit also suggests to me that even the First Minister has lost faith in the Scottish Futures Trust.

Worse still, the SNP now look likely to break another promise. We were told they would explain how the new Forth Road Bridge would be funded before the end of the year.

Alex Salmond should also show some humility and accept that his Scottish Futures Trust is utterly discredited. He recklessly ditched PPP, basing much of his criticisms on old models of PFI, and now he has no alternative.





The full article contains 541 words and appears in The Scotsman newspaper.
Page 1 of 1

  • Last Updated: 28 September 2008 10:43 PM
  • Source: The Scotsman
  • Location: Edinburgh
 
1

truthsleuth,

29/09/2008 00:18:58
Hopefully he will stay along with his many supporters
2

Team Scotland,

29/09/2008 00:30:03

This is worth exploring. Any project will now be harder now that the money supply is drying up. One step ahead again.

3

Brian Hill,

29/09/2008 00:33:13
Alex Salmond and this totally refreshing SNP Government should continue to do anything which will further Scotland's interest.

Until we can get hold of all monies raised in Scotland, if AS can borrow from International Markets then so be it.

I have complete faith in the economic abilities of Salmond, Swinney, Neil et al.

Andy K and his lot should stop barking at the moon for a minute and observe what the SNP are doing. They might learn something to their advantage.
4

Darien,

Panama 29/09/2008 01:08:22
There is now nothing left in GB plc, Hen Broon has made sure of that, so Scotland needs to get capital from somewhere. This is all thanks to the Scots BritNat unionists - NewLab, Tory and FibDum. If Scotland had been independent it would not need to do this thanks to oil resources. But now there is no option, gracias to all the wallies in the past voting for British nationalist/unionist parties.
5

Weegiewarbler,

Still sailing 29/09/2008 01:09:50
If Labour hadn't led the UK to the edge of disaster and had help from their predecessors, and had not the previous Holyrood administrations - singularly and as a coalition - mortgaged the futures of our children with PFI / PPI then we suspect strongly these moves would NOT be needed.

Mr. Kerr - Acknowledge your and your parties culpability in this, then work WITH and not against the elected government for a BETTER - FAIRER nation, perhaps the electorate may one day forgve what remains of your organization.

Please = Please = Please learn from the messes you created, because until you do you are destined to likely repeat them - and the Scottish nation can neither afford nor permit that!

We hope one day the Scots do forgive you - or someone else must rise to provide a decent alternative to the SNP - for at present there is none, therefore the only real thinking peoples choice for Scotlands future at this time is the SNP.
6

arkletten,

Scotland 29/09/2008 01:50:14
Why not seek finance from Norway's sovereign wealth funds? Why Qatar?

Salmond has been planning this for months. He met with Omar Shaikh in January (FOI). Shaikh submitted the report on Islamic Finance (sharia bonds known as 'sukuks') and raised the possibility of a 'Scottish sukuk' or 'Tartan sukuk' back in March.

The figure of Osama Saeed looms heavily in this. It was he who put Shaikh in touch with Salmond.

In principal I have nothing against a better deal but I am sceptical that this IS a better deal or that it comes with no strings attached.

The real 'story' in this story is the elephant in the corner - Salmond is seeking to swipe at Whitehall over any climb down over Barnett. And secure a place on the world stage for Scotland in the murky world of Middle Eastern politics. Like we need it.
7

arkletten,

Scotland 29/09/2008 01:52:36
I agree with #5 that Labour need to stop defending PPP/PFI.
8

Jeeemy,

St Andrews 29/09/2008 02:41:24
Mutualisation worked then the greedy B******d's within our society wanted de-mutualisation. They got their way and that was the downfall of the Scottish TSB, the Yorkshire Halifax, and many others.
The end result will be to move back to Mutualisation, so if you want a mortgage go to a mutual outfit you wont get one that you cant afford and not without a deposit.
9

alba nach,

Tarbert 29/09/2008 04:03:21
Isn't it time for Labour to explain why almost every other country that struck oil has a sovereign wealth fund, except Scotland. Why after three decades of oil, all of it managed by Labour and the Conservatives, should Scotland be in the position it needs to go cap in hand to anyone. The only folk this reflects badly on are those who have governed Scotland since the 70s.
10

Sierra Foothills Scot,

Diamond Springs 29/09/2008 04:51:03
#6 arkletten is "sceptical that this IS a better deal or that it comes with no strings attached."

Arkletten, nobody said "it" was a better deal, and in fact there is no deal at all on the table, and might not ever be. Do you really think Alex Salmond is a babe in the woods about dealmaking? Do you think he is only talking with one potential money source? Get real.
11

Alan Reid,

NZ 29/09/2008 05:50:30
Does not the UK goverment do business with Saudi Arabia? If so why can't Scotland?

And also if Scotland had control over it's oil fields maybe Mr Salmond would not have to go there in the first place?

1 truthsleuth, Can you explain why you seem to be against this?
12

suchaparcelofrogues,

Scotland 29/09/2008 07:20:47
I think its a stroke of genius for AS to bypass the Barnett formula in this way.
13

suchaparcelofrogues,

Scotland 29/09/2008 07:22:23
6

Maybe they did and Norway charged a higher interest rate? dont expect to get the full story fae this rag.
14

A Better Way,

Scottish Republic 29/09/2008 07:37:17
The Unionist parties are spewing because these Capitol Projects will actually lift the Scottish Economy in very difficult times. Just on wages and the spending within the Scottish Economy will be a massive injection into small business as well.

Thank Christ we have politicians like the great man himself, and Alex Neil out there doing their best for their ain kind. The Scottish Nation are lifting their heads and feel good about themselves. Fifty Years of exploitation by London Parties cannot crush our people and their pride in their nation.

Onwards and Upwards together as a Nation. God Bless Scotland.
15

All Politicians are the same,

Scotland 29/09/2008 07:38:46
#14

"the great man himself" A supporter and a ppeaser of terrorism in all forms, you stay and live in Scotlandistan with your great mullah then.
16

1745,

Edinburgh 29/09/2008 08:29:07
#14
Well said. As usual Alex Salmond has annoyed Labour by having taken a fresh view of funding. His thinking "outside the box " will give Scotland freedom.
Blustering Kerr has no place in our society, this will be proven at the next General election.
17

suchaparcelofrogues,

Scotland 29/09/2008 08:30:47
15

You could be right after all he did invite the Israelli ambassador to speak in the Scottish parliament.
18

Calvinist,

29/09/2008 08:52:57
Alex Salmond- the man who put the Tart in Tartan prostituting our future to an odious regime that gives not one damn about human rights. And you have the hypocrisy to go on about freedom.
19

Calvinist,

29/09/2008 08:54:55
17

You must be celebrating the Success of your brother fascists in Austria today.
20

frank mcbride,

lusitania 29/09/2008 09:28:07
#18,19, Calvanist.

You sound like a bit of a hypocrit.

On one hand you decry the SNP as Fascist: on the other you support a NuLab government that refuses to recognise the Democratically elected (Hamas) government of Palestine.

Are you a hypocrit? Or is your name "Andy" Gray?
21

Mr. Lachie Todd,

Edinburgh 29/09/2008 09:45:35
During the Summer, at the height of the soaring petrol price crisis, Gordon Brown jetted off to Saudi Arabia to lobby for higher oil production to lower prices at the pumps!
22

Rasco,

Inverness 29/09/2008 10:30:29
Where does the British Gover.borrow money from Andy
23

oder,

Scotland 29/09/2008 10:32:34
21 Mr. Lachie Todd,

"and" obviously it didn't work! another great idea from the "British" leader! the man who "listens" but doesn't hear!
24

Auld Twa,

Edinburgh 29/09/2008 10:46:07
Where else are we going to borrow money ?
They have the stuff coming out of holes in the ground.
Unfortunately Scotland's black gold all vanishes down holes in the ground controlled by Andy's cronies.
25

Ananurhing,

29/09/2008 10:49:06
Even Alaska and Shetland have wealth funds based on their oil production. Why not Scotland?

As long as an SNP governed Scotland remains in the union, and westminster control the purse strings, there will be an economic war of attrition to starve Scotland of funds. We've seen this already with the tightest settlement yet from westminster, Threats to withold council tax rebate, etc. These are acts of economic war. Compare this to the Ulster unionists £200 million bung for supporting the 42 day detention legislation.

Make no mistake. The only weapon the unionist parties have left in their arsenal is fear. Economic scorched earth policies to instill fear and lack of confidence in Scotland's ambitions for self governance. Look at the labourites unbridled gleeful rejoicing at the demise of BOS. Disgraceful!

Therefore Salmond is forced to find ways to pull fiscal rabbits from a hat. The prospects of repaying monies borrowed from foreign sovereign funds will change enormously after Glenrothes and 2010.

Well done Salmond. As always he shows himself to be the only political leader in the UK with intelligence, vision, and imagination.
26

Calum10,

29/09/2008 12:25:30
SNP World View: Scotland is an active member of the global community. Scots should be aspirational.

Labour World View: Scotland is too small to matter. Scots should know there place.
27

A McBay,

Edinburgh 29/09/2008 12:44:20
We all just need to be sure about what we understand to be the precise nature of this much vaunted independence, and specifically economic independence, that we are being encouraged to vote for.

As long as people are made to realise that Scotland's independence may come at the price of mortgaging Scotland to Arab oil money, like the Qatar sovereign wealth funds, then that's fine. We have however yet to see the terms of the mortgage - the assets on which it will be secured, the repayment term in years, the repayment terms such as the ROI the SWFs are seeking, and, er, what happens if we default.

Only then will we be able to determine the extent to which what we are getting is "PFI/PPP in a burnoose".

28

Edward,

29/09/2008 12:52:27
Interesting juxtaposition with two answers
One from Alex Neil, providing a positive outlook and very business like and the other from clueless Andy Kerr, who is an embarssment to the Labour movement!
Andy Kerr can only critisise regardless as he is rabidly anti SNP. He is also clueless when it comes to financial matters and will attack anything he just doesnt understand. Persomally, I would tend to go with the financial experts who say this move for Qatari funding is sound
What is exactly Andy Kerr's expertise??
Well no one is sure, but he has a diploma in Social Sciences....
29

Liberal for life,

Dunblane 29/09/2008 13:01:56
Hasn't samond learned anything form the recent financial situation - we have to learn to live within our means and invest wisely, not borrow from goodness knows who next.
30

Arfur,

29/09/2008 13:11:54
Just about every country in the world borrows of others.

The point here is caller.

Some good comments about on why exactly has the Engerlund government been spending every penny of our oil and not created a fund where as every other nation with oil has including Alaska FFS.
31

connaughtboy,

stonehaven 29/09/2008 13:37:29
Andy Kerr says no, just for the sake of it. Another nail in Labour's Glenrothes coffin.

Remember to donate to the SNP campaign fund.
32

,

29/09/2008 14:10:31
Comment Removed By Administrator
Reason:
33

,

29/09/2008 14:33:52
Comment Removed By Administrator
Reason:
34

Brian Hill,

29/09/2008 16:41:34
#9 alba nach Spot on. Scotland, the first country in history and get poorer, certainly in terms of the growing number of children below the poverty line.

It's an absolute disgrace, unfortunately much of the blame lies with us for allowing Labour to get us the worst deals possible, especially re Oil and Gas.
35

Findlay Thompson,

29/09/2008 16:42:18
I take my hat off to you Johnstone Press, the more you come out with this right wing UK prop., the more you seem to alienate the Scottish voters and push them away from the UK model. You couldn't do a better task if you had purposely tried.
36

Active Sassenach,

Luton, England 29/09/2008 16:52:45
Oddly, before Alex Salmond dreamed up selling Scotland to Middle Eastern Sovereign Wealth Funds, I was neutral about his tenure of office and even positive.

"The Scottish Futures Trust, chaired by ... Sir Angus Grossart, is ... part of delivering ... value for money, making sure the benefit to taxpayers comes before the profits of private investors."

What planet is Alex Neil on? Who will invest money for which they are responsible to others except at the best return? That involves maximising the dividend on it, often as a legal duty. How does Alex Neil think these SWFs got the money in the first place? By adjusting the price of oil to put the user's benefit before the profits of the oil company?

Worse, I'm afraid, some of these SWFs exist in countries that do not have our standards on civil liberties and human rights. What is Alex Salmond going to do when some conflict of interest arises or it emerges that one of these countries has sheltered enemies of Scotland? Remember Glasgow Airport? It wasn't the English Nationalists who tried to blow it up.
37

Jock Tamson,

Scotland, Caledonia, Alba 29/09/2008 17:06:04
If you can borrow the money at a good rate without the added overheads of the PFI/PPP method of borrowing then fair and good.

I wonder if the capital amount would luanch the SFT? Also wonder if Westminster would try to find some clause to declare it illegal? Bet they are working on that wee gremlin right now.
38

Jock Tamson,

Scotland, Caledonia, Alba 29/09/2008 17:08:45
re 38: launch, not luanch.

Anyway, as far as I can see PFI/PPP is still borrowing.
39

Scotty F,

The Borders 29/09/2008 17:14:34
I really dont understand the SNP. They scrap the student endowment, what a gimmick that was, they consequently increased our interest rates to pay for it, so in the long run my loan costs more than under a Labour government!! Then they scrap the Forth tolls and have the cheek to expect the rest of Scotland out with Fife to pay the tolls through taxes when a good proportion of Scots dont use the Bridge that often!!! Now they want to replace the council tax with a local income tax. They have frozen the council tax at the minute which has as a consequence affected investment in many local services across the country, eg no new teachers being recruited in the Borders!!!! When we badly need them!!! In a region like the Borders the local income tax would be a disaster as down here 70% are low earners so services would only have to suffer!!!What would we do then Salmond?? Why have small Schools in Dumfries and Galloway with as low as 19 pupils been saved when Schools of upwards of 70 in the Borders are under threat???? Maybe because we did not vote for the SNP!!! Instead of going cap in hand to Qatar to cover your ass Salmond why dont you undo this financial mess your making in Scotland and stick with teaming up with Scottish Engineering companies as would be done in PPP, rather than leaving us in debt to untrustworthy Arabs, how much are the interest rates?? And would you increase the monster potential debt to cover our withdrawl from the UK if it ever remotely happned??? PPP may have its faults but it is the lesser of the two evils we now face, i trust British engineering companies as opposed to corrupt backward thinking, human rights abusing regimes in the Middle East. And the whole hypocrisy of it all is Salmond opposes any British involvement with the Middle East wether it be Military or Trade. The SNP are full of hot air and s***e. Iam sick of this arrogant nationalist idiot in Bute House making an idiot of Scotland in front of the world. We need a carefull and conce
40

Scotty F,

The Borders 29/09/2008 17:19:01
retd approach in this difficult times ensuring people can heat their homes and feed their children NOT infinitely in debt ourselves to the middle east!!! Answer those questions Salmond and your bunch of reckless self centered idiots.
41

Jock Tamson,

Scotland, Caledonia, Alba 29/09/2008 17:30:32
Scotty, 40, think you will find the Scottish engineering and construction companies will still be designing and building the schools.

You may well find that the consortiums will not be buildings houses under assumed names, on the land from the replaced schools, on the cheap any more - as the taxpayer shells out extortionate repayments for a generaration or twa.

As for the rest of your post, you should write to the SNP for answers and compare them with those of your favourite local MSP.
42

Nevsky,

Moscow 29/09/2008 17:57:38
Scotty F#

Sorry to debunk your theory that Salmond is in charge of the universe but he isn't.

For finance, direct your vitriol to Westminster unless you are advocating independence in which case you might have a point.

Why blame the Scottish parliament for the powers it does not have?

Get a grip and ask yourself how many in Norway are struggling to pay for heat...none!

On one last point..have you any idea how much UK PLC has invested in the Arab countries and how much business and finance they control in the UK.. i am guessing not..just an idiotic post from a lame unionist with not a clue what he is talking about!

43

SkeptikScot,

29/09/2008 18:09:39
Now we've sold off pretty much everything in Scotland, I guess we might as well start selling things that we haven't yet built with money we haven't yet earned.
44

Western Gael,

Colorado Springs 29/09/2008 18:21:56
Alex Salmond has spent too much time in politics and too little in business. Any lender, whether Oil Sheikh or high street bank, has a fiduciary duty to obtain a best return on investment. The first consideration is whether the borrower (indistinguishable from a seller of securities backed only by a promise to pay) can meet the agreed terms. Given the parlous state of British (not just Scottish) financial affairs now, I believe the First Minister might be well advise to seek aid from the tooth fairy first.
45

Miss H,

29/09/2008 21:20:16
45 Suggest you would be better off worrying about your own country rather than Scotland. Four or five billion quid is nothing in the scheme of things but would make a difference to Scotland. It's small beer however compared to the general collapse of western capitalism as we know it. If I was you I would be a bit more worried about that.
46

Scotty F,

The Borders 29/09/2008 21:45:41
*43 "doesnt know whta he is talking about" Answer my god dam questions and then we will see who is talking rubbish, oops forgot you dont live here so comment when you live back here!!!We are nothing like Norway so why compare us?? Typical nationalists comparing us to other countries which we are not like, Ireland (who the SNP worship) are in recession with all the foreign investment now being pulled out and the prices of consumables in Norway are far higher than here so get your facts straight. Russia another country where Britian invests in and is just as corrupt so remeber where you are writing from. And Miss H iam a Unionist so what??? I care deeply for Scotland and just as proud to be Scottish,Uninists can and do care for Scotland just as much as the rest of the UK thats why i dont want Salmond to ber First Minister. Scotland is a country where lots of different opinions and cultures mix and that includes Unionists stop being selfish and ignnorant and accept that the SNP are a minority and you to face up to my questions and facts in my previus comment!!! Or the SNP just conveniently forgetting what they have done??? Thought so.
47

Scotty F,

The Borders 29/09/2008 21:49:44
Oh yeah and £4-5 billion is a lot of money to be in debt to essential dictatorships especialy when God soldiers who the SNP think they are are backtracking on their morals regarding the Middle East!!! PATHETIC
48

frank mcbride,

lusitania 29/09/2008 23:02:56
Scotty.

It's delightful to hear from a youth so full of passion.

However, passion is not enough; some intelligent analysis is also required.

Student Endowments have been abolished, thanks to the SNP.
You Student loan interest rate has gone up, thanks to the Bank - Regulatory authority BoE and Westminster.

CT frozen; a great benefit to the lower paid and the majority of pensioners, thank to the SNP.
LA allocation well above rate of inflation (Westminster calculated)despite a Westminster settlement below inflation, thanks to the SNP.
Current inflation rate 12/15%, thanks to Westminster's mishandling of the economy.

Shall I go on, or do you get the drift?

Yes, if you wish, be proud to be a Unionist, but please don't embarrass yourself with unsubstantiated nonsense.
Use your God given abilities to analise the information you have, and present it coherently.
49

Matt there,

somewhere 30/09/2008 00:09:06
Andy Kerr. Who proves not all comedians in Scotland are at the Festival Fringe.
50

Darien,

Panama 30/09/2008 00:41:21
"Should Alex Salmond go to the Middle East to fund Scottish public projects?"

Yes, of course. No option, Westminster is now bust.


51

oder,

Scotland 01/10/2008 01:09:52
"Should Gordon Brown go to the Middle East to fund English Nuclear power station projects?"


for all of you who have a problem with Salmond borrowing money from the Middle East, what your opinion on Brown trying to get the Saudi`s to by over Britain nuclear energy industry? makes anything Salmond does totally insignificant, or is this just another Nat bashing exercise?

 

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