Salmond's futures trust plan 'is a watered-down version of derided PPP'

Published on Thursday 8 May 2008 22:31

ALEX Salmond, the First Minister, was yesterday forced to admit his proposal for paying for major projects would be similar to the public-private partnerships (PPP) he has derided.

During First Minister's Questions, he was challenged over the SNP's controversial plan to create a 'Scottish futures trust' to replace PPPs.

The concept was originally to sell bonds to raise cheap loans, but this has been ruled illegal because it goes beyond the powers devolved to Holyrood.

Instead, a consultation document has proposed that the futures trust will be an arms' length organisation. The document was heavily criticised for lacking detail.

Mr Salmond was asked by Derek Brownlee, the Tories' finance spokesman: "Can the First Minister confirm the Scottish futures trust is a private company?"

Mr Salmond said it was, but "a not-for-profit model."

Mr Brownlee said later: "This is a watered-down version of PPPs and you have to wonder what Mr Salmond's anti-private sector backbenchers think of his big idea now.

"You also have to ask why he has delayed projects by stopping PPPs when all he intends to do is replace it with something similar."

Labour MSPs also pressed Mr Salmond on what was happening with the futures trust as his government has stopped any new PPPs.

Andy Kerr, Labour's local government spokesman, asked: "Will (the futures trust] initiate any new schools? Will it build the 100 new schools by 2009 and a further 150 by 2011 as promised by Labour, matching us brick by brick? Or is it, as ever, that talk is cheap, but the lives and futures of our children are cheaper still?"

Mr Salmond hit back, claiming that Labour-led East Renfrewshire Council had offered to pilot the futures trust in the consultation.