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Review of capital projects
24/06/2008
Audit Scotland's review of major capital projects vindicates the Government's decision to establish the Scottish Futures Trust (SFT) which aims to deliver vital infrastructure projects at better value for taxpayers' money, Finance Secretary John Swinney said today.
The report - How Scotland works: Review of major capital projects in Scotland - suggests that 'a more strategic approach to managing the programme of capital projects could improve value for money'.
Mr Swinney said:
"The Audit Scotland report highlights the importance of efficient and effective planning of our capital investment programme of some £35 billion over the next 10 years. The Government believes that this is essential, which is why we are establishing the SFT.
"The need to co-ordinate our capital investment more strategically was at the heart of our drive to set up the SFT.
"We already know from the work done on the SFT business case that a new organisation with a remit across the public sector can support the delivery of the vital infrastructure we need at better value for taxpayers. Today's report shows that to be the case and when the Futures Trust company is set up this summer it will begin delivering exactly that - releasing up to £150 million a year for increased investment.
"The SFT will enable greater partnership, improved preparation and handling of projects, and better value finance - an approach that Audit Scotland's report endorses. Where private finance is involved all of this will be achieved while stripping out the excessive profits of the outdated and discredited PFI and replacing it with the non-profit distributing model.
"The Audit Scotland report is based on a timely review of projects started under the previous administration. We welcome the useful contribution it makes to the important issue of the planning and delivery of infrastructure investment and we will study it closely.
"Investing in vital infrastructure such as our transport network, our hospitals and our schools will be absolutely central to achieving our goal of increased sustainable economic growth."
SFT, to be formed this summer, has as its objectives:
- To create a consistent Infrastructure Investment Plan based on ten-year investment strategies
- To optimise investment under the Prudential Code using new techniques such as future modelling, tax increment funding and developer contributions
- To form at least two 'community hubs', including primary/community care facilities
- To support the Scottish Funding Council in developing delivery and funding strategies for the Higher / Further Education sector
- To develop an approach under the 'Firm Foundations' policy to lever in more private sector investment into housing
- To develop an asset-based investment fund to support community regeneration
- To examine scope to reduce the cost of existing PFI contracts. SFT will have an important role to play in applying across the infrastructure landscape lessons in 'best practice'
- To assist public sector to produce national strategies for the delivery and funding of schools, housing, waste and flood prevention investment
- To provide expert support for Gateway Reviews
- To advise Scottish Government and liaise with the market on strategic aspects of infrastructure investment, particularly market issues and capacity