Edinburgh Western SNP MSP Colin Keir says he is ‘seriously concerned’ over the costs of PFI schemes – not only within his constituency, but nationally.
With local authorities having difficulties in balancing the books Mr Keir’s questions to the Deputy First Minister show how much pressure they are under thanks to the now highly discredited funding system.
Mr Keir said: “The figures are eye-watering. £39.2 million paid last year alone in PFI payments all because the previous Liberal Democrat-Labour coalition at the Scottish Parliament didn’t have a clue about value for money.
“When you take the national figures into consideration you can see exactly why local authorities struggle with funding. It’s time the Labour Party and the Liberal Democrats admitted that, thanks to their financial incompetence as well as their support for the current Tory austerity programme, local authorities will struggle to find extra capital funding for new assets such as schools.”
“ At least in Edinburgh Western the SNP Scottish Government have provided extra money for new dining halls at East Craigs Primary School, Cramond Primary School and Blackhall Primary School – and not using PFI. This is why we need not just a strong SNP government running Scotland but a powerful SNP presence at Westminster fighting for Scotland”
PFI and PPP Costs Questions 26th February
- Colin Keir (Edinburgh Western) (SNP)
To ask the Scottish Government whether there is an up-to-date estimate of private finance initiative and public-private partnership costs in the Edinburgh Western parliamentary constituency. (S4O-04058)
The Deputy First Minister and Cabinet Secretary for Finance, Constitution and Economy (John Swinney)
Information on the cost of PFI and PPP projects is updated annually and made available through the Scottish Government website.
The Edinburgh schools PPP bundles 1 and 2 include provision for schools within the Edinburgh Western parliamentary constituency. The revenue cost of both bundles in 2014-15 is anticipated to be £39.2 million.
Colin Keir MSP
Does the Deputy First Minister agree with me that local authorities such as the City of Edinburgh Council would today have far more money to spend on local services if they were not saddled with billions of pounds of debt because of the failed PFI agenda of the previous Labour and Liberal Executive? Is it not about time that those parties owned up to their part in creating this mess?
John Swinney MSP
As I shared with Parliament during the budget process, the total repayment on PFI contracts in 2014-15, for the whole of Scotland, is £952 million. It will breach the £1 billion level in 2017-18.
What I cannot understand is why my predecessors in office decided to saddle the country with PFI debts when they were leaving budgets unspent in the possession of Her Majesty’s Treasury at exactly the same time. When we came to office, £1.5 billion of expenditure was unspent by our predecessors. That demonstrates a lack of financial competence by our predecessors, and it shows their lack of interest in investing sustainably in the interests of our country.
