This item was published during the term of a previous administration that ended in April 2007
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Executive re-affirms committment to PPP
26/06/2003
The Executive is committed to using PPP as part of its
modernisation of public service programme to help build a
better Scotland, a conference was told today.
Finance and Public Services Minister Andy Kerr was
speaking at a one-day Scottish Conference in Edinburgh on
public-private partnerships - "Achieving Best Value Through
Partnership".
The Minister reiterated the part that PPP has already
played in delivering new investment in our schools and
hospitals and he also set out the Scottish Executive's
plans for future investment through PPP including transport
and water, and exploring its use for areas such as
community regeneration and street lighting.
Mr Kerr said:
"Our approach to public services can be summed up in two
words - reform and investment. Reform is about getting the
framework right and we are removing the barriers to service
delivery. On investment, PPP has made a real difference to
the significant investment backlog we have suffered in
Scotland. There is no going back to drip feed investment
and badly maintained facilities.
"But it's not all about money. Good design is important.
Getting the best out of a mutual partnership for the sake
of our communities is important. Those who work in Public
Services are also crucial to the delivery of high quality
public services and the Scottish Executive has taken steps
in this area as well. We have made significant progress in
protecting staff in PPPs. We worked with the STUC and
introduced a Staffing Protocol last November. We are now
encouraging employers to recognise, use and develop the
skills of those in the workforce including improved
training.
"But we can't afford to stand still. It is now time to
push ahead with increased spending through efficient
delivery drawn from the best of public and private sectors.
PPP has already touched communities across Scotland with
efficient delivery of new schools and hospitals. The
underlying approach is now tried and tested and we have
many new challenges to explore in PPP.
"PPP is a vital tool in the Scottish Executive's toolbox
and it is not one that we are afraid to use. PPP is here to
stay."
Mr Kerr was speaking at the "Achieving Best Value
Through Partnership" conference on Public Private
Partnership held in the Caledonian Hotel, Edinburgh.
Revenue spending on PPP projects currently accounts for
just two per cent of the Scottish Executive's Total Managed
Expenditure. Private Sector capital investment in public
services through PPP is equivalent to 13 per cent of the
Scottish Executive's capital budget on a cash accounting
basis.
PPP has resulted in £4.6 billion investment in over 120
projects in all sectors.
All of the resources available to the Scottish Executive
over the next three years through the Scottish Budget will
be used to stimulate growth in the economy, increase
opportunities for all, and deliver substantial long-term
improvements in Scotland's public services. This
includes:
the biggest ever investment in our schools - some £2
billion for around 300 new or refurbished schools over the
next 6 years; health spending rising to £8.6 billion by
2005-06; £1 billion per year on transport by 2006; and £1.8
billion on water over 4 years
The Scottish Executive has also taken steps to abolish
the existing controls on local authority capital
expenditure and to introduce a new prudential system from
2004-05. The Scottish Executive expects that there will be
flexibility under the new prudential system to allow for
local authorities to increase their capital investment.