Capital ideas
If not PPP/PFI, then what? And when? What system is Scotland to use for funding capital projects?
SNP ministers adamantly insist there is no slippage in building new schools and the like across the country.
Pretty well everyone else says that there is.
Alex Salmond and John Swinney have several substantive points to make in response.
Firstly, they note that changed rules mean it will no longer be possible to keep PPP/PFI off balance sheet - which lessens its attraction.
Secondly, they note the excesses of the early contracts which leave public authorities facing all the financial risk while private firms gain huge profits.
Thirdly, they say that their new Scottish Futures Trust is working hard on ideas to transform the capital funding system.
Fair enough. But, once more, what? And when?
It seems to me that the options are limited.
One can use straightforward public sector capital spending as is being done with the new Southern General Hospital in Glasgow.
However, the Scottish Government has no borrowing powers of its own (something that is being closely scrutinised within the present debate over the financing of devolved Scotland.)
Having no substantive source of revenue of its own (again, for now), it can issue no bonds.
Ministers say bonds might be collectively issued by local authorities.
But are those likely to be attractive in the currently constrained market? Mr Salmond says they could be financially competitive. Others harbour doubts.
To be clear, the Scottish Government has not completely ruled out the use of PPP/PFI.
Indeed, it has sustained existing contracts.
However, it is now being argued that local authorities and others are unwilling to risk the expense of preparing such plans, given the stated ideological opposition to this method of finance from ministers.
Without endorsing the apocalyptic rhetoric of some of the Scottish Government's political critics, it is still reasonable to ask for an alternative narrative to be presented.
What? And when?
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