Labour’s claim that investment in infrastructure has fallen was revealed as “bogus” as Enterprise Minister Jim Mather said that the Scottish Government’s work to support the construction sector was protecting tens of thousands of jobs across Scotland.

Speaking after Labour’s claims were comprehensively demolished during a debate in the Scottish Parliament, Mr Mather said:

"The Scottish Government has acted decisively to support our economy and our construction sector, maximising and accelerating its capital spending to support infrastructure investment and jobs across Scotland.

“Any claims to the contrary are bogus. Claims that the value of new public investment projects reaching the stage where they can start construction has fallen by £800 million are false, as these figures related solely to the value of PPP projects. The figures ignore the massive £3.8bn conventional infrastructure investment programme this Government delivered in the last year. This vast investment is delivering projects, sustaining and protecting some 50,000 jobs and it is simply ridiculous to suggest to the contrary.

“Also, it has been pointed out that, as a result of the recession and the credit crunch, the value of PPP projects has fallen 67% between 2007-08 and 2008-09 (from £1.3 billion to £0.4 billion) in Scotland. But that completely fails to take into account that this compares to a fall of 86% in England under a UK Labour government over the same period.

“And in Scotland we have the added benefit of the valuable work being done by the Scottish Futures Trust to deliver more effective infrastructure investment across the country.

“The SFT are taking forward the National Housing Trust, which has the potential to create at least 1,000 new affordable homes, support jobs in house-building, kick-start construction on stalled housing sites, and open up access to finance for developers.

“And SFT is helping deliver vital infrastructure projects such as our £1.25 billion school building programme. Just last month through the Hub programme, SFT awarded start-up funding to health and other infrastructure projects worth £130 million. As recognised by Edinburgh Chamber of Commerce, SFT ‘is absolutely the right thing to do’* – a positive statement which we welcome and support.”

Notes

*(Scotsman on Sunday, 22 November 2009)

•    Claims that the value of new public investment projects reaching the stage where they can start construction has fallen by £800 million are false.

•    These figures related solely to the value of PPP projects

•    In reality capital investment has risen steadily and now stands at £3.8bn, up from £3.1bn in 2006/7

2006-07 (£m)    - 3127   
2007-08 (£m)    - 3391   
2008-09 (£m)    - 3204   
2009-10 (£m)    - 3782

•    As a result of the recession and the credit crunch, the value of PPP projects has fallen 67% between 2007-08 and 2008-09 (from £1.3 billion to £0.4 billion). This compares to a fall of 86% between 2007-08 and 2008-09 (from £6.9 billion to £1.0 billion) in England.