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By Martin Kelly
A request by the Scottish Government for funding to be made available for ‘shovel ready’ projects looks set to be ignored by UK Chancellor George Osborne.
First Minister Alex Salmond had asked for £300 million to be made available after UK PM David Cameron reportedly said he was sympathetic to the case.
However media reports claim that the Mr Osborne has dismissed the idea which followed a request by the PM that Scottish Ministers submit a list of projects for consideration.
Mr Salmond has said that he would be “extremely disappointed” if the request was to be rejected in such an offhand manner, Scotland’s capital budget was cut by 32% by the coalition government.
In a letter to Mr Cameron the First Minister reminded the PM he had made “these representations in good faith”.
Mr Salmond added: “As you will remember, you told me that you were sympathetic to the capital investment point but were sceptical as to whether projects could be ready to take effect from this coming financial year.
“You readily agreed to being sent a list of ‘shovel-ready’ projects that could have an immediate and beneficial impact. The clear understanding was that if we could demonstrate that such projects could be taken forward in an appropriate timescale then they would be given proper consideration.
“This we have done and there is now no argument that some £300m of capital projects could be deployed in the coming financial year, giving a vital boost to local economies around Scotland.”
He called on Mr Cameron to confirm whether reports that the Scottish Government’s call for funding would be dismissed in the Budget were correct.
The First Minister challenged the PM to confirm his earlier indication of support.
“I therefore invite you to dissociate yourself from the comments that have been attributed to representatives of your government,” said Mr Salmond.
“I also ask once again that you take action to ensure that this week’s Budget delivers for Scotland. You could do this by agreeing to provide the additional funding to support the list of ‘shovel-ready’ projects I enclosed with my letter.”
The Scottish Government had submitted a list of capital projects on which work could start immediately if additional funding was made available. Ministers estimated that every extra £100m of funding would create 1,400 jobs.
Calls for additional capital spending were backed by STUC assistant secretary Stephen Boyd who yesterday called for investment in infrastructure to boost the economy.
Giving evidence to the Scottish Parliament’s Education and Culture Committee, Mr Boyd said:
“Politicians right across the spectrum recognise you should invest in infrastructure in this moment in time, which not only gets the economy moving in the short-time, but it boosts the long-term capacity of the economy to grow.”
Joan McAlpine, SNP MSP for South Scotland and member of the committee, also tabled an amendment to a parliamentary motion urging David Cameron to respond to the Scottish Government’s demand that funding be released for upgrade of a section of road in her region.
Speaking yesterday Ms McAlpine said:
“This call from Stephen Boyd chimes with the SNP’s position that the UK Government must invest in infrastructure to get the economy moving.
“Mr Boyd recognises this will not only help immediately in boosting the economy, but also will help in the longer term.”
The SNP MSP said that the mounting calls for investment should not be ignored and called for immediate action to promote investment, employment and economic growth and “not another damaging cuts campaign.”
Ms McAlpine added:
“The Scottish Government cannot borrow for infrastructure investment due to the constraints of devolution. “David Cameron told the First Minister he would consider giving capital projects the go ahead if the Scottish Government provided details.
“Mr Cameron has now been sent details of 36 shovel ready projects and he should prove he is true to his word.
“The A75 in the South of Scotland should be a priority – that’s why the Scottish government has included the upgrade of the Hardmount to Kinmount section in the list of projects submitted to Downing Street.”
Meanwhile, Mr.Salmond needs to radically re-think his strategy as the current one clearly ain’t working.
There is a Parliament in Scotland, about time to start making it work like a Parliament as opposed to a disbursment department of London.
Sorry I don’t quite understand the point here Upspake. How can the government act like a Parliament when they are still in thrall to Westminster? They could, I suppose, stand up tomorrow and declare that Scotland is an independent country and throw up two fingers to London. But where would that get us, would he have the support of the people remembering the polls are not showing a majority for indy yet? Westminster would simply refuse to accept it, we would certainly not be able to get rid of Trident, they would put pressure on the likes of oil companies to keep paying tax to London and starve us of what little money we already get from them. It wouldn’t surprise me if they declared a state of emergency and sent in troops.
Slow and steady wins the race as a tortoise once said.
Meanwhile, Mr.Salmond needs to radically re-think his strategy as the current one clearly ain’t working.
Really? Firstly let’s just remember that the SNP are not the ANC. We are not in a war with oppressors in the way that the ANC was in South Africa. We are working within a political and economic establishment and wish to dissolve the treaty that binds us to that establishment. The ONLY way that the SNP can do this without being labelled as ‘terrorists’ or ‘agitators’ etc. – which we ALL know would be cream on the cake for the BBC and MSM – is to keep showing responsible government, responsible requests, and responsibly identifying how Westminster could actually do good for Scotland.
The fact that Westminster does not do this, is the key to winning over many of the doubters and fearties.
I would have to say if the SNP allow the Scotland Bill through I’ll no longer be a member.
Wholly agree with you. This testament by the Scottish Government that they will accept the bill is nothing short of a disgrace. This bill is full of power grabbing amendments that will very much be to the detriment of Scotland.
The Scottish Government have betrayed Scotland and members of the SNP in accepting this disgraceful bill.
No substantive objectionable sections have been changed.
I note also, the extremely cynical aspect of the fact that this announcement of this acceptance of this awful piece of legislation has been released the day of the UK chancellor giving his budget.
I am very angry about this. What on earth are the SNP thinking???
Mark my words, NO GOOD WILL COME OF THIS ACCEPTANCE OF THE DISGRACEFUL SCOTLAND BILL WHICH REMOVES POWERS FROM THE SCOTTISH PARLIAMENT.
I might now leave the SNP. Seriously, seriously hacked off at this betrayal.
Just a theory based on the fact that Salmond does not walk into traps, he sets them.
I’d agree with this, but I’d be a lot happier if I could work out where the trap is. I don’t think he can realistically claim that the Scotland bill is DevoMax.
Michael Forsyth is part of the Westminster government
No, he isn’t.
No, don’t you see? The SNP is already briefed to say, thanks and all that, but it’s only a fraction of what Scots are looking for.
And how exactly will they get that message across?
They were having some success in getting people to acknowledge it was a flawed piece of legislation that did the pro-union side few favours. Now there is a volte-face and the SNP are going to agree to it. What message does that send?
There is such a thing as being too clever and I have a feeling that this is one such example.