The Scottish Government

Construction

RECOMMENDATION

COMMENT

1. There is a need to develop a Strategic Planning Framework for Scotland, within which the construction industry can work in partnership with Government to provide Scotland's people and businesses with an infrastructure competitive in world-class terms.

Review of strategic planning has embraced a wide range of views. Additionally, the review of National Planning Policy Guideline (NPPG) 2 will reinforce the importance of a constructive dialogue between planning authorities and industry. The public expenditure planning cycle has, since 1997, worked to a 3 year time horizon. This is an improvement over the previous system of annual budgets. We have done some limited work in developing 5-10 year 'aspirational' plans but there is a clear difficulty matching these plans with the 4-year life time of the Scottish Parliament without appearing presumptuous. The provision of detailed project information is a difficult area which is being considered further. Disaggregated information may be available for some capital spend but a large proportion of capital asset creation is in the hands of bodies outwith the Executive's direct control, eg Health Trusts and Local Authorities.

2. There is a need to streamline the planning process and regulations to eliminate unnecessary cost and delay, thus improving national productivity.

Improving the efficiency and operation of the planning system is a key priority. Planning authorities' performance is monitored and evaluated through the work of the Planning Audit.

3. There is a need to harness construction sector skills and expertise within Public Private Partnerships to redevelop Scotland's under-utilised public assets.

The Executive is committed to supporting the need for improved public services. PPP is one vehicle to deliver this. Deals worth capital value of 2.7bn currently at various stages of procurement. Projects include hospitals, schools, colleges, transport, ICT, waste management, waste water and prisons.

4. The Group supports the introduction of a 'user pay' system for elements of Scotland's infrastructure - with hypothecation of revenues to ensure appropriate funding for key priorities.

Transport (Scotland) Act 2001 allows local authorities to introduce road user charging on local roads, where appropriate. Act ensures that the net revenues raised are hypothecated for local transport expenditure.

5. The housing debt problem needs to be addressed.

The Executive has made substantial additional resources available for public sector housing through the New Housing Partnership Programme. Following agreement with the Treasury local authorities who transfer their housing stock into community ownership will have their remaining housing debt repaid. With the debt burden lifted all of the additional private finance which will be raised following transfer can be used to improve the fabric of the housing stock. Four councils: Glasgow, Scottish Borders, Dumfries and Galloway and Shetland are currently progressing transfer proposals.

6. A fuller recognition of the importance of construction to the Scottish economy is required: a heightened priority within the new Business and Industry Department would assist the industry in developing its full potential.

The Enterprise and Industry Division within the Enterprise & Lifelong Learning Department assumed the construction industry sponsorship role in August 2000. The Minister for Enterprise, Transport and Lifelong Learning meets regularly with the Scottish Construction Industry Group. The Executive funded research into maximising construction employment opportunities, which was published in January 2002. Scottish Enterprise will now take forward the outcomes of this research as part of a wider Construction initiative. The Executive is funding a secondee (from October 2001-September 2002) to a 'Pulling together Scotland' project to increase industry awareness and involvement in Rethinking Construction/best practice activities in Scotland.