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Scottish construction set out in updated infrastructure plan

5 Feb 13 Additional infrastructure projects of more than £20m are set out in the Scottish government’s updated Infrastructure Investment Plan (IIP).

The capital investment programme is on course to spend £3.1bn for 2012/13 and £3.4bn next year. Several projects will be completed and become operational in 2013/14, including the Aberdeen Community Health and Care Village, Lasswade and Eastwood High Schools, Dumbarton Academy, Auchmuty High School, and Glasgow School of Art estate development.

The new document is an update of the one published in December 2011 and lays out plans to 2030.

It also sets out progress in 2012, when nine of the major infrastructure projects included in the IIP, collectively worth more than £600m, were completed. Progress has also been made on the Forth Replacement Crossing, the new South Glasgow Hospitals and Scotland's Schools for the Future programme.

Deputy first minister Nicola Sturgeon said: "This government is determined to invest in Scotland's infrastructure - our schools, roads and hospitals - both to stimulate growth in the short term and lay the foundations for long term success.

"Today's updated plan demonstrates exactly how we will do that, despite substantial and ill thought through cuts in our capital budget from Westminster of some 26%.

"We are on course to spend £3.1 billion on projects in communities across Scotland in 2012/13, supporting some 40,000 jobs.

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"That is good news for our economy and our construction industry, which we know benefits from the certainty and vision of the future the Infrastructure Investment Plan provides.

"While everything in the IIP is possible under the current constitutional arrangements, with the full powers of independence and prudent use of borrowing powers, we could bring forward investment more quickly - making a very substantial difference to our economy both now and in the future."

The updated Infrastructure Investment Plan Progress Report, the updated Programme Pipeline and the Project Pipeline are available at: http://www.scotland.gov.uk/Topics/Government/Finance/18232/IIP

Industry reaction

Commenting on the publication of the updated plan, Scottish Building Federation executive director Michael Levack said: “We warmly welcome the publication of this updated infrastructure investment plan that sets out a clear timetable for the future delivery of major capital projects. As we’ve long argued, the industry relies on a clear and transparent pipeline of new work to be able to plan future capacity and start building a recovery. The outstanding challenge is to give Scottish construction firms of all sizes fairer and easier access to these contracts by streamlining public procurement and to speed up the process of getting shovels in the ground.

“We’ve already contributed a range of ideas to the Scottish government’s ongoing construction procurement review. One measure we’d like to see implemented quickly is a refund of procurement costs for those building firms that are shortlisted but ultimately unsuccessful. We believe that would help make the public procurement process much more efficient and discourage public authorities from drawing up tender shortlists that can run to 15, 20 or even more contractors.

“Smaller building firms are still finding trading hard and, aside from improved construction procurement, additional government measures are vital to help them survive. With the UK Budget due in early March, we will again urge the Treasury to slash VAT on building repairs, maintenance and improvements to encourage private consumers to start spending again.”

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