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Scotland's PFI Quango Chief with £1billion PFI reasons to smile


SNP promised no more PFI to get elected - at a time when the financial crisis resulted in the lowest interest rates in history for government and council borrowing.

But, just like Nick Clegg, SNP MSP's have all renaged on their PFI pledge and now we find they have set up a Scotland wide PFI system, hoping to secretly land Scottish Taxpayers with a further £30 billion more PFI debt instead - including £1billion more PFI schools.

Do we want £1billion more PFI schools after this week 17 PFI schools in Scotland, built just 10 years ago are now proven to have structural faults and two days ago a primary school in Shropshire, opened in 2011 was also forced to close after parts of a veranda fell to the ground.

It appears we are getting them whether we want them or not after SNP set up an unelected quango called The Scottish Futures Trust to oversee and manage their £30 billion PFI plans for schools, hospitals, roads and much more.

In 2009, Alex Salmond appointed ex army major Barry White as the CEO of the Scottish Futures Trust.

Barry White had made his living for the previous eight years as a director of two of the "most prolific public private partnership (PPP) companies in the industry".

In an interview, after he was appointed, he said PFI could still be used North of the Border after all and councils will be allowed to continue to take on PFI too.

The SNP claimed they had scrapped PFI and replaced it with their NFT "charity" non profit model - but the BBC reported their new model gives 25 year PFI Contracts where taxpayers pay up to ten times more than the capital cost for PFI managment fees with SNP even throwing in 125 land leases in the 25 year contracts- yet they claim they would reform land laws.

Despite the SNP constant diatribe against Labour's PFI, they also appointed Christa Reekie, Peter Reekie and Tony Rose to the board of the Scottish Futures Trust - people who all earned a living consulting and advising on Labour's PFI.

And to make their PFI setup even more profitable for the PFI companies - SNP decided PFI was not only here to stay but to maximise the benefits for a few they would turn Scotland into a PFI monopoly board for a few chosen PFI friends.

Alex Salmond and Nicola Sturgeon and their chosen PFi specialists went on to carve Scotland up into five private PFI Hub Terriitories

To manage each "PFI Hub Territory" they set up five public/private companies, controlled by PFI consortiums, shown on the monopoly board to the left.

Each of the private companies has a 10 year monopoly, so they can award PFI contracts (to themselves) for all public works in the new hub territory they control.

In each of the five PFI hub companies the PFI consortiums have 60%, Scottish Futures Trust has 12.5% and every council, NHS trust, police, fire service and court service in the PFI "Hub Territory" each has just 2.5% control i.e. no control.

The EU and even Westminster's ONS ruled this new unique SNP PFI set up broke EU rules as SNP were attempting to hide the PFI debt and the SNP government must make all the costs of the PFI contracts, not just the capital costs, known to the pubic.

Yet, in August 2013 the BBC reported the government had signed a £415 million contract to upgrade motorways in the central belt with a consortium called "Scottish Roads Partnership" (made up of Spanish construction companies and a French financier).

What the BBC did not say, despite EU and ONS ruling, this was in fact a PFI contract where the £415million cost they reported was only the capital cost - and the trust cost of this contract to Scotland's taxpayers is in fact £1.391 Billion - that's

So instead of borrowing £415million, at the lowest interest rates in history, the SNP government and their Scottish Futures "Trust" decided to go to PFI lenders instead -and add over £1billion extra uneccesary PFI debt to Scottish taxpayers for 30 years for this one PFI contract alone

So far they have £796.8 million of PFI projects on the books already have over £2.0844 billion extra PFI costs added.

So Scotland has a total bill for £2881.2 billion debt for capital cost of £796.8 million.

This when the Scottish Futures Trust website states they are "an independent company, established by the Scottish Government with a responsibility for delivering value for money across public sector infrastructure investment".

The website goes on to say "SFT's work during 2014/15 delivered £135m of net benefits and savings to infrastructure investment in Scotland" -

Is that £135 million mostly the so called £105 million "saving" for the motorway contract - while the board say nothing of the related £1.091billion extra debt?

And the website page also says nothing of the fact the CEO of the SNP government's Scottish Futures Trust has £1billion reason to smile as his LinkedIn profile reveals six months after this motorways contract was awarded - he was appointed to the board of the Scottish Roads Partership who "won" the contract.

Surely this blatant conflict of interest, where a govenrment regulator is appointed to the board of a company involved in a PFI contract with related £1billion extra PFI debt - surely must breach Scottish Law, Westminster law and EU law?

But the blatant conflict of interest does not end there.

Alex Neil then gave two of his Scottish Futures Trust board members, Barry White and Christa Reekie, a £55 million "loan" of Scottish taxpayers money to set up their own "charity".

The "charity" is being set up to replace regulated public renting via Housing Associations after SNP told them there would be no more housing association grants.

Irvine Housing Association was forced to merge with Riverside Housing Association in Liverpool as a result, after the management visited every tenant in their home informing them it was the only way they could now get money to build more homes in Scotland.

And now the tenants of what was a Scottish Housing Association, in the SNP Housing Minister's own constituency, have to phone Liverpool to pay their rent and arrange repairs.

So what sort of "charity" is being set up with £55 million of taxpayers money while council budgets are being slashed?

This new "charity", the Local Affordable Rent Housing Trust. (LAR) being set up by directors of the Scottish Futures Trust said it has been set up to rent out "affordable housing" - will tenants have the same tenancy rights as council and housing association housing?

The Press and Journal reported "Charitable trust pleads to north-east housebuilders for homes" while Christa Reekie and Barry White were also appealling to "private investors" for £100million - would that be considered a "charitable donation"?

This is all part of the new unique PFI setup for what we are told is "public" "affordable housing" for rent that is not social housing, where the houses will be sold after just 6 years and the tenants left with unaffordable rents and PFI management fees on top.

SNP have set up another "trust" - the National Housing Trust - to oversee the building of "affordable housing" for rent.

This unique PFI type model forces austerity laden councils to borrow 70% of the money to build each home to pay property developers up front to build SNP's unique version of "affordable rented homes".

But what the Scottish government don't say is the rents are only affordable for between 5 and 10 years and after just 6 years the private developer can sell those homes to anyone they want - give the council back their 70% stake - to ensure the homes are not public rented homes and the council never sees a penny of rent - as the PFI company in the middle gets not only the rent but the fees for managing and maintaining the properties on top - from tenants pockets.

Just like the Scottish Futures Trust (who is part of the National Housing Trust setup) - only this time it is tenants paying the PFI management cost for 30 years and the developer profits when the house is sold so property developers don't pay to build houses any more - taxpayers borrow the money for them to profit and tentants are at the mercy of unaccountable private unaccountable "management" companies instead of elected councillors and accountable housing association boards.

The death of democracy.

The Scottish Futures Trust, the National Housing Trust and the "charity" Local Affordable Rent Housing Trust - all set up in breach of voter trust where SNP assured voters there would be no more PFI in Scotland when in fact SNP have turned Scotland into a PFI monopoly board using Labour's PFI players and they are all doing very nicely while Scottish taxpayers and tenants are all going to pay the price - once, like Blair, Alex, Nicola and their fellow MSP's waltz into the sunset.


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