A matter of Trust as plan to get rid of PPP backfires on government

THE SNP Government's flagship scheme for building schools and hospitals suffered another knockback yesterday when its chairman said it will use any form of funding – even the Public Private Partnership (PPP) model, which the Scottish Government opposes – if that provides the best value for money.

The Scottish Futures Trust (SFT) was set up by the Scottish Government in an attempt to prevent infrastructure projects from being built using the PPP model because SNP ministers believed that method was too expensive to the taxpayer in the long term.

But Sir Angus Grossart, the chairman of the Scottish Futures Trust, told MSPs yesterday that he was not bound to any "ideology" and he would recommend any form of funding which worked, even if this meant PPP.

Sir Angus's comments represent the latest blow to the SFT scheme, which was initially planned to deliver big infrastructure projects by the sale of Scottish Government bonds, until that was found to be unworkable.

It was then designed to produce schools and hospitals using a not-for-profit model as a way of making sure the PPP method was phased out.

But, by accepting that the SFT will look at any funding methods, Sir Angus has revealed that the Scottish Futures Trust will be much more flexible than Scottish ministers had ever wanted it to be.

The SFT chairman told Holyrood's finance committee that he wanted to be ecumenical in his approach to this issue.

Asked whether he would recommend the use of the PPP model to ministers, Sir Angus replied: "It is possible, yes."

Asked whether he was "bound" to the not-for profit model, he replied: "We will look at all the options. We understand entirely all the political territory that is happening and we will give our recommendations based on our best advice.

"Our approach will be ecumenical."

All ministers have been under pressure over the delay in getting the Scottish Futures Trust started so that it could help build schools and hospitals.

But the Education Secretary Fiona Hyslop is expected to reveal significant new progress later today when she announces the Scottish Government's funding for school building in Scotland in a statement to parliament.

Ms Hyslop is expected to reveal which new schools will be built using the SFT, how the money will be raised to pay for them and the potential savings for the taxpayer.

Yesterday Labour seized on an Edinburgh University report to claim that the SFT was "sunk".

They claimed that Mark Hellowell, from Edinburgh University's Centre for International Public Health Policy, had exposed the SFT as a sham when he said there appeared to be little difference between the not-for profit model and the PPP scheme.

Andy Kerr, Labour's finance spokesman, said: "It is completely unacceptable that so many pupils are being taught in crumbling classrooms. If Labour had won the last election we would have stepped up our school building programme and delivered 250 new or refurbished buildings.

"Instead, we have had two years of SNP retreats, excuses and inaction to the point where the SFT is now dead in the water."

Mr Kerr added: "Their manifesto pledge of a not-for-profit trust was never deliverable and has now been nailed as the lie it always was."

A spokesman for Ms Hyslop rejected Labour's claims, insisting that 250 schools would be rebuilt or refurbished in the lifetime of this parliament.

He said: "The Scottish Futures Trust, which is now backed by CBI Scotland, is already supporting investment as part of the Scottish Government's massive 35 billion infrastructure programme for schools, hospitals, roads and other projects over the next decade.

"The SFT, which delivers increased value for taxpayers' money, has taken charge of the programme delivery for two community hub developments in the south-east and the north of Scotland to provide purpose built community services."

FROM BARRAS TO THE BOARD

THE Scottish Government needed a substantial figure from Scottish finance to head its controversial Scottish Futures Trust programme, and found it in Sir Angus Grossart.

The 72-year-old Scottish businessman went to Glasgow Academy and Glasgow University but honed his business skills selling toffee at a Barrowlands stall.

The chairman and executive director of Edinburgh-based merchant bank Noble Grossart, Sir Angus has held many high-profile positions including: vice-chairman of the Royal Bank of Scotland; chairman of the board of trustees, National Galleries of Scotland, chairman of the Fine Art Society; and chairman of Lyon & Turnbull, auctioneers.

This is his first political appointment.