19 December 2008
By David Scott
An influential parliamentary committee has voiced doubts over whether a new method of funding capital projects in Scotland will provide better value for money.
In a report published on December 16, the Scottish Parliament's finance committee said it had yet to be proven whether the Scottish Futures Trust — a body being set up by the Scottish Government — would become a more attractive source of funding for national and local projects such as schools and hospitals.
The committee's views are a blow to the Scottish National Party government's plans for the SFT, which it hailed as a better alternative to the 'costly and flawed' Private Finance Initiative and public-private partnerships.
Following an inquiry into future methods of capital funding, MSPs on the committee said they believed 'there is insufficient information to judge whether the SFT will be a mechanism for delivering improved value for money'.
The committee agreed that 'all methods of funding capital projects should be considered equally on their merits'.
Labour, the main opposition party in the Parliament, demanded that the SFT should be shelved 'as it lacks credibility in the present economic climate'.
The committee's findings are in line with those of CIPFA in Scotland, which said the Scottish Government had failed to provide any evidence that the SFT would provide better value for money.
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