'Forth bridge bank needed' to help pay for crossing

Published on Sunday 28 February 2010 20:35

FINISHING the new Forth road bridge by 2016 could be put at risk if a national infrastructure investment bank is not launched to help pay for the £2 billion crossing, a construction trade body warned today.

Michael Levack, chief executive of the Scottish Building Federation (SBF), said he had written to the Chancellor calling for him to create the bank when he unveils his final Budget before this year's general election.

He said he was backing calls from the Institute of Civil Engineers, which has highlighted the work of other state-run investment bodies, such as the KfW Bank in Germany.

Investment banks normally raise money from private investors on the bond markets, adding to the public money pumped in by governments.

Levack said he had also written to finance secretary John Swinney, and Barry White, chief executive of the Scottish Futures Trust, calling on them to support the creation of an infrastructure bank.

"We hear reports of central and local government under mounting pressure to cut costs and scale back expenditure, whilst protecting frontline public services," Levack said.

"Creation of a infrastructure investment bank would be the perfect vehicle to achieve major improvements in Scotland's schools, hospitals, housing and infrastructure, while relieving pressure on the public purse."

His warning came as Dr Peter Hughes, chief executive of trade body Scottish Engineering, called for time-tabled work on major infrastructure projects – such as the replacement Forth crossing – to be brought forward to protect jobs.

Hughes' demand came as figures released today in Scottish Engineering's quarterly survey showed orders were growing for electronics firms but metal manufacturers and machine shops were still facing falls in orders.

Hughes said: "I am hopeful that the manufacturing engineering sector will break through into a positive trading situation in the near future and it would be a welcome bonus if either the Holyrood or the Westminster government would bring forward some major infrastructure projects like the new Forth bridge or the Beauly to Denny power line."

Meanwhile a survey by the Engineering Employers Federation and accountancy firm BDO revealed rising confidence among manufacturers.

But the report also warned of concern over future public spending.

A Scottish Futures Trust spokesman said the body welcomed all contributions to the infrastructure debate and would study the SBF's letter.

A Scottish Government spokesman welcomed the SBF's recognition of the importance of the bridge project and added: "The bridge will be completed on time and on budget.

"And we continue to put the case to HM Treasury for financing arrangements for the crossing, which recognise its status as a once-in-a-generation major strategic investment in Scotland's infrastructure."

The UK Treasury did not respond to a request for a comment.