Scots builders voice concerns at PFI plans

Scottish builders warned this week that plans for a non-profit making form of PFI could drive away competition and create a serious slow down in the delivery of Scotland's infrastructure programme.

The warning comes as the consultation period for the Scottish Futures Trust (SFT) draws to a close.

The SFT wants to replace traditional PPP and PFI contracts with a model based on Argyll and Bute's groundbreaking £75m not-for-profit schools PFI. The SFT model would see profits ploughed back into the community and funds raised through bonds.

The Scottish Building Federation raised concerns this week at the proposals. Chief executive Michael Levack told CJ: "We welcome the consultation but are concerned at the scant details provided by the consultation document.

"The Scottish National Party talks of 'extreme and unwarranted profits' being made by PFI contractors. I know of none in Scotland. There is also a capacity issue. There is already low interest in some schemes in Scotland from Scottish firms, let alone from firms over the border. There is a danger this will make things worse."

Levack also warned against a slow down in Scotland's infrastructure programme. He said: "We do not need a period of indecision with projects being shelved."

Leading PFI players echoed Levack's concerns this week. One major PFI investor said: "This will drive the industry away from Scotland to easier PFI and PPP markets such as Canada where they have made PFI as attractive as possible to ensure healthy competition."

Another PFI contractor commented: "Scotland should remember the Holyrood disaster before it throws out what has been a highly successful delivery vehicle for major projects."