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No Holyrood pot of gold for schools rebuild, parents told



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Published Date: 27 March 2008
EDUCATION Secretary Fiona Hyslop has told parents there is no point in the city council asking the Scottish Government for more cash to rebuild an ageing school.
She said in a letter to Portobello for New Schools member Willie Wilson there was "no pot of money" for local councils to bid for, as they had already been allocated "record levels of funding".

Her letter comes as the council prepares to hand in feasibility studies this week to the Scottish Government outlining its plans to replace five crumbling city schools.

Edinburgh's education leaders also recently revealed they would submit formal business cases for each of the "wave three" schools – including Portobello High – by June in the hope of convincing Holyrood to allocate funding for the projects.

But Ms Hyslop said the Scottish Government did not need to approve such business cases as it was up to local authorities to identify their own "funding solutions" for rebuilding schools.

Parents fighting for a new Portobello High School today accused the city's education leader, Councillor Marilyne MacLaren, of using "delaying tactics" by proceeding with the "charade" of submitting business cases while knowing Holyrood's stance.

But Cllr MacLaren said the amount of capital funding available for the council as a whole over the next three years was £155 million, while the cost of the wave three project alone was £165m.

She said the council had set aside £33m over the next six years for the project and needed the Scottish Government to provide the other 80 per cent.

But Mr Wilson said that Ms Hyslop's letter spelled out "in black and white" the money would not be available.

He said: "Marilyne MacLaren is putting together a bid for the wave three schools to go to Holyrood which she must know will be refused.

"The question is, why are they doing this? Are they afraid to make the decisions that have to be made on how to spend the available money?

"I think the council is treating us like children, like we don't understand, when we can see in black and white that the money isn't available. The whole thing is a charade."

Cllr MacLaren said the business cases for the schools had to be prepared regardless, as they are part of the planning process.

She said the council needed the Scottish Government to provide a source of funding, as borrowing £165m for the project would cost £14m per year in repayment and interest charges.

"We can see that Edinburgh has massive bills we have to pay," she said. "Right now, the cost of the wave three schools is £165m, and we only have £155m to spend as a council."


The full article contains 454 words and appears in Edinburgh Evening News newspaper.
Page 1 of 1

  • Last Updated: 27 March 2008 10:50 AM
  • Source: Edinburgh Evening News
  • Location: Edinburgh
  • Related Topics: Schools in Edinburgh
 
1

Top Floor,

27/03/2008 13:10:38
I thought the SNP were going to match the previous Executive's school building programme "brick for brick" ?

What happended ? Did bricks just get more expensive ?
2

portboy,

Edinburgh 27/03/2008 13:23:27
#1 - correct! everything under SNP gets more expensive and they always lie.
Remember Edinburgh Tram - Kenny McCaskills statement "SNP do not support the tram". Due to this statement many people voted for SNP - and guess what, ding ding, all aboard the Tram.
SNP are awful, cannot state how bad they are as words do not allow this.
3

Ghost,

Portobello 27/03/2008 13:31:34
Edinburgh Council has commitments, entered into by the previous labour council under PPP1 and PPP2 over the next 30 years amounting to £1.185billion pounds (figures taken from note 3 of their 2007 accounts). This is for the provision (new or refurbished) of 12 primary schools and 11 secondary schools and 2 speacial schools. This averages out at £51 million pounds per school. Any sensible person would therefore welcome the more cautious approach being taken by both Scottish Government and the Council to determine a better value for money means of delivering the new schools. The SNP would not be doing us any favours continuing to encourage councils to pursue PPP schemes - we are just mortgaging the futures of the children we are trying to educate. No point in giving them shiny new buildings when our economy is in tatters.
4

Duncan in Edinburgh,

27/03/2008 14:51:56
#3 That's lovely, except that this "more cautious" SNP approach you mention consists entirely of simply not doing anything for the schools at all.

Which is somewhat disappointing for those who thought that "match the current schools building plans brick for brick" meant "match the current schools building plans brick for brick", as opposed to "not match the current schools building plans at all".

Can you see the problem?
5

Ghost,

Portobello 27/03/2008 15:27:31
The "current plans" have been taken to mean (by SG, at least) those proposals for which a business case had been drawn up, and costs etc identified. Unfortunately for Portobello High, and many others, they were not at this stage. No business case for Portobello had been drawn up, never mind approved by the Scottish Government. Edinburgh Council is now having to take stock, and find a way forward, and unfortunately for them that can't be done overnight. It still doesn't mean that it was the wrong decision to cut up the credit card.
6

Stevie Mac,

Edinburgh 27/03/2008 15:38:31
Ghost, whose economy is in tatters?

"This averages out at £51 million pounds per school. Any sensible person would therefore welcome the more cautious approach being taken by both Scottish Government and the Council to determine a better value for money means of delivering the new schools. The SNP would not be doing us any favours continuing to encourage councils to pursue PPP schemes - we are just mortgaging the futures of the children we are trying to educate."

SNP are merely trying to come up with a different borrowing mechanism from PPP/PFI because they don't like it, not many people do. However, it is naive or ignorant of you to think that there will be big cost savings in whatever new mechanism is developed. The market for borrowing funds of the type is competitive and mature. I reckon (and so do all of the SG ministers I have spoken with) that there is a maximum of 0.75% to be saved by the Scottish Futures Trust mechanism and just like most things there is the possibility of a down side and it could end up costing more. (SNP are experts at that)

At the moment almost everyone is knocking PPP an in particular its cost . Knobs are heralding a potential low-cost funding initiative, developed by the SNP. I'm afraid it ain't going to happen. Whatever new mechanism is introduced it will be PPP with a different branding, which may be more acceptable politically but may also cost more.
7

Stevie Mac,

Edinburgh 27/03/2008 15:58:23
Ghost you say "It still doesn't mean that it was the wrong decision to cut up the credit card."

You are so wrong. As Local governments have very limited fund raising abilities they can only invest in infrastructure of this size if they have a line of credit. The credit card will be back before much longer.

 

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