3 November 2011
Draft Budget fails Scottish economy
Transform Scotland [1] has released its evidence to the Scottish Parliament on the Scottish Budget. In the evidence, Transform Scotland highlight the Scottish Government's failure to fund its climate change plans, and its economic incoherence of funding foreign companies to build roads, while cutting investment for local Scottish businesses.
Transform Scotland's director Colin Howden gave evidence to the Parliament's Infrastructure and Capital Investment Committee at its meeting yesterday, and have today welcomed the support leant to its evidence by Neil Findlay MSP (see appended news release).
Colin Howden, Director of Transform Scotland, said:
"Transport is the basket case of climate policy -- and yet the Government has decided to cut funding for areas which would deliver emissions reduction.
"If the Scottish Government wants to support local jobs it should be increasing, not slashing, investment in cycle paths. Cycle routes are typically built by small civil engineering contractors and by local authorities, with the materials used sourced locally.
"Contrast that with the Government's demented road-building programme. For projects such as the proposed Second Forth Road Bridge, the main contracts are instead being given to foreign construction companies.
"The Government needs to reinstate the budget for active travel. If it doesn't do this then it will blow a hole in its climate commitments and its own Cycling Action Plan."
ENDS
Notes to Editors
[1] Transform Scotland is the national sustainable transport alliance, bringing together rail, bus and shipping operators, local authorities, national environment and conservation groups, businesses and local transport groups - see <http://www.transformscotland.org.uk/members.aspx> for details.
[2] See <http://www.transformscotland.org.uk/draft-budget-fails-sustainable-transport.aspx>.
END OF NEWS RELEASE
From: Scottish Labour Press Office [mailto:labour.press@gmail.com]
Sent: 03 November 2011 10:52
Subject: SNP BUDGET DOES NOT STIMULATE SCOTTISH ECONOMY
News Release
Immediate Release Thursday October 3, 2011
SNP BUDGET DOES NOT STIMULATE SCOTTISH ECONOMY
Scottish companies and their employees will not receive the benefits from major infrastructure projects that the SNP government says they will.
That is the view of Transform Scotland, the national alliance for sustainable transport, in a hard hitting submission to the Scottish Parliament’s Infrastructure and Capital Investment committee.
In their report Transform say “We are not convinced by the case the Government presents regarding the benefit to the Scottish construction industry of the focus of infrastructure ‘mega-projects’.”
They highlight that three of the four firms involved in the consortium for the second Forth Crossing are Spanish, German and American and the fourth, Morrisons Construction is a division of the English based Galliford Try.
And they add it is a “disappointment” the main benefactors of the Edinburgh Tram scheme are two German firms and one Spanish.
The report goes on “should the Scottish construction industry require financial stimulus from the Scottish government we would contend this would be better served by the prioritisation of capital expenditure more likely to be recouped by Scottish companies rather than by companies headquartered outside Scotland.”
Transform also criticise the SNP Government’s efforts to tackle the road maintenance backlog stating that “if the government wants to stimulate the economy and bring benefit to all Scotland, it would invest in local infrastructure. Instead, it runs the risk of forcing councils to rack up huge debts to bring roads up to an acceptable standard.”
Commenting on the report Scottish Labour MSP for the Lothians, Neil Findlay, a member of the committee said:
“Transform has highlighted some important points. While these large scale projects are subject to European tendering rules the SNP government could do more to insist on contractors using local sub-contractors and suppliers alongside quotas for training places and apprenticeships.
“They also make a valid point about the state of our roads and pavements. Every Council in Scotland will have a backlog of maintenance programmes and at a time when their budgets are being cut by the SNP a lot of these schemes will not happen.
“Hopefully, the Cabinet Secretary for Finance will give careful consideration to the submission and come forward with some new proposals on how he can use the budget he does have at his disposal to create jobs and growth.”
Ends
For more information contact David Whitton on 0131 348 6268 or 07771 941170
http://www.scottish.parliament.uk/S4_InfrastructureandCapitalInvestmentCommittee/General%20Documents/Written_evidence_from_Transform_Scotland.pdf