24 August 2001
In a keynote speech on August 20 to mark the midpoint of the first Scottish Executive's term of office, McLeish said that private sector practices were a boon to public services and that ideology would not stand in the way of involving private companies.
The first minister said: 'We believe that government should work to improve people's lives and that the interests of consumers should be put before those of producers.
'Even the best of the traditional public services could lose sight of their main goal – to serve the public – and often did.'
McLeish echoed Prime Minister Tony Blair's recent espousal of practicality over political dogma: 'We believe that what matters is what works – and by that I mean that in any conflict between pragmatism and ideology, pragmatism will always prevail. So in Glasgow we are already seeing the results of the public-private partnership to renew our schools, and in East Kilbride a new hospital, again a PPP, ready to open in September.'
Private Finance Initiative and public-private partnership projects are seen as vital if the Scottish Executive is to make the savings needed to waive student tuition fees and fund the long-term care of the elderly, all pledges which McLeish has reaffirmed.
'We are determined to spare older people and their families what in other health care systems is called the catastrophic cost of long-term illness,' he said.
Scottish union leaders reacted angrily to the pro-PFI/PPP content of McLeish's speech.
Matt Smith, the Scottish secretary of public sector union Unison, said: 'PFI and PPP funding is a short-term solution, with the expensive funding packages ring-fenced so they have to be paid before other services.
'Its main priority is financial profit not social justice and as we are finding in Glasgow schools – it doesn't work.'
Unison has pledged to push private sector funding to the forefront of this autumn's Labour Party conference.
PFaug2001
