Renfrewshire continuing to Pay for Labour's PPP
Monday, 21 September 2009
MoneyDr Bill Wilson, SNP MSP for the West of Scotland, has hit out at the spiralling costs of New Labour’s Public Private Partnership scheme (PPP).  PPP was launched by the previous Scottish Executive as a method of funding capital investment in public services. Many private companies made massive profits from a scheme, which frequently saw local authorities paying vastly inflated prices. In many instances it will be thirty years before the buildings are fully owned by local authorities (if at all). 

 

Speaking on the issue, Bill said:

 

“New Labour stated that PPP was the way ahead for public capital projects.  Unfortunately they forgot to highlight the huge costs of financing these projects. In many cases the cost of hiring a gym hall or a football pitch has become so expensive that local community groups simply cannot afford to do so.

 

“Next year Renfrewshire Council will have to pay out £14.2 million just to keep up the payments of Labour’s PPP.  In the next financial year the council will be expected to pay £14.5 million.  This is Renfrewshire’s share of the £850 million per year that Scotland has to pay for PPP, which includes an increase for this year of over £100 million.

 

“A Scottish Futures Trust is a better way to fund public projects, taking away the massive profits that big business expect when committing to PPP.

 

“The folly of PPP is hitting hard pressed councils at the moment, when they are facing the consequences of £500 million of cuts coming from New Labour at Westminster, in the midst of a recession.  Once again it will be the ordinary citizen that will pay for New Labour’s mistakes.” 

 
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