This item was published during the term of a previous administration that ended in April 2007
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Executive re-affirms committment to PPP
26/06/2003
The Executive is committed to using PPP as part of its modernisation of public service programme to help build a better Scotland, a conference was told today.
Finance and Public Services Minister Andy Kerr was speaking at a one-day Scottish Conference in Edinburgh on public-private partnerships - "Achieving Best Value Through Partnership".
The Minister reiterated the part that PPP has already played in delivering new investment in our schools and hospitals and he also set out the Scottish Executive's plans for future investment through PPP including transport and water, and exploring its use for areas such as community regeneration and street lighting.
Mr Kerr said:
"Our approach to public services can be summed up in two words - reform and investment. Reform is about getting the framework right and we are removing the barriers to service delivery. On investment, PPP has made a real difference to the significant investment backlog we have suffered in Scotland. There is no going back to drip feed investment and badly maintained facilities.
"But it's not all about money. Good design is important. Getting the best out of a mutual partnership for the sake of our communities is important. Those who work in Public Services are also crucial to the delivery of high quality public services and the Scottish Executive has taken steps in this area as well. We have made significant progress in protecting staff in PPPs. We worked with the STUC and introduced a Staffing Protocol last November. We are now encouraging employers to recognise, use and develop the skills of those in the workforce including improved training.
"But we can't afford to stand still. It is now time to push ahead with increased spending through efficient delivery drawn from the best of public and private sectors. PPP has already touched communities across Scotland with efficient delivery of new schools and hospitals. The underlying approach is now tried and tested and we have many new challenges to explore in PPP.
"PPP is a vital tool in the Scottish Executive's toolbox and it is not one that we are afraid to use. PPP is here to stay."
Mr Kerr was speaking at the "Achieving Best Value Through Partnership" conference on Public Private Partnership held in the Caledonian Hotel, Edinburgh.
Revenue spending on PPP projects currently accounts for just two per cent of the Scottish Executive's Total Managed Expenditure. Private Sector capital investment in public services through PPP is equivalent to 13 per cent of the Scottish Executive's capital budget on a cash accounting basis.
PPP has resulted in £4.6 billion investment in over 120 projects in all sectors.
All of the resources available to the Scottish Executive over the next three years through the Scottish Budget will be used to stimulate growth in the economy, increase opportunities for all, and deliver substantial long-term improvements in Scotland's public services. This includes:
the biggest ever investment in our schools - some £2 billion for around 300 new or refurbished schools over the next 6 years; health spending rising to £8.6 billion by 2005-06; £1 billion per year on transport by 2006; and £1.8 billion on water over 4 years
The Scottish Executive has also taken steps to abolish the existing controls on local authority capital expenditure and to introduce a new prudential system from 2004-05. The Scottish Executive expects that there will be flexibility under the new prudential system to allow for local authorities to increase their capital investment.