Murphy in bid to bridge gap between SNP and London over Forth crossing

Published on Sunday 11 January 2009 21:22

SCOTTISH Secretary Jim Murphy will try to broker a deal between the UK and Scottish Governments later this month in the row over the funding of the new Forth bridge.

The Scottish Government wants to be able to spread payments for the bridge over 20 years, rather than having to pay for the bridge in the three or four years it is built.

This plan has been rejected by the UK Treasury, leaving the Scottish Government with little choice but to take money from other projects to pay for the new Forth crossing.

Now Mr Murphy has intervened and invited John Swinney, the Scottish Finance Secretary, to a meeting with Yvette Cooper, the Chief Secretary to the UK Treasury, on 27 January to try to resolve the stalemate.

Mr Murphy said: "I'm inviting the SNP government and the Treasury to talks despite the way in which the SNP's played politics with this. The sums don't add up. They are trying to borrow money against budgets that don't even yet exist over a period of two decades.

"But despite the fact the SNP sums don't add up, it is important that we do make progress which is why I'm inviting them to these talks. Because it is important that we build this new Forth crossing, we want the right crossing at the right price. I think we can make progress."

Mr Swinney said he was delighted about the meetings but said he was in no doubt about the right way forward.

He said: "The sensible way to proceed is to undertake this bridge project under traditional government procurement and we've got the money to pay for that in our capital budgets.

"What's important is that we have a sensible and constructive discussion with the Treasury about spreading the cost of the bridge over a number of years to ensure that we can support other capital projects at the same time. I'd be delighted to discuss that issue because it reflects a sensible way forward."

One possible solution to the impasse would be for the Scottish Government to be granted borrowing powers. That would allow Scottish ministers to borrow money from international markets for big, one-off projects such as the new Forth bridge and then to spread repayments over a number of years.

The Scottish Government yesterday increased the pressure on the UK government on this issue by publishing the names of organisations and individuals backing its call to have borrowing powers.

The Scottish Government said it was supported by the Scottish Trades Union Congress, the Chartered Institute of Public Finance and Accountancy, the Society of Local Authority Chief Executives and Senior Managers, the Royal Society of Edinburgh, the Church of Scotland and former Labour First Minister Henry McLeish.

A spokesman for First Minister Alex Salmond said: "If we have responsibility for major issues such as funding a new Forth Bridge – the biggest capital project in Scotland's history – then it makes perfect sense for us to have the financial responsibility to match.

"What this issue clearly illustrates is the need for the Scottish Parliament to have borrowing powers, so that we have the ability to phase the funding of major capital projects sensibly and efficiently."