ref date:5 Jun 2002 (econ)
SNP unveils workable alternative to private intervention in public services
SNP alternative to PPP/PFI
* Trusts are designed to cut the cost of borrowing for investment in roads, schools, hospitals, prisons, and housing.
* Funding sources would include bond issues, the European Investment Bank, commercial loans at low interest.
* Trusts would be self-financing.
* They would operate outside the public sector.
* They would spread risk across various capital projects.
* Trusts to be neutral on whether services were provided by the public or private sector - value for money would be the key.
* The SNP estimates that, for each £1bn invested over 30 years and for each 1% drop in the cost of capital below the PPP average, a trust should save up to £240m over the course of the contract.