Scottish Futures Trust

SESA has voiced strong concerns about the Scottish Government’s proposals for the establishment of a Scottish Futures Trust (SFT). In responding to the Scottish Government’s proposals, SESA noted the lack of evidence to suggest that the proposals had been informed by economic reality or were even lawful in a context where the Scottish Government has no borrowing powers under the terms of the Scotland Act.

The SFT has been proposed as an alternative to PFI, and aims to eliminate the potential for uncapped investor returns under the standard PFI model. However, SESA noted that it is now common practice for waste management PFI contracts to incorporate revenue sharing between the public and private sectors where the private sector partner delivers excess performance. Procurement guidance for public authorities has been developed so public private partnerships, whether using PFI or otherwise, deliver value for money for the public sector.

SESA noted that waste management operators would find it difficult to provide residual waste treatment infrastructure in Scotland under the proposed model. Whether a Scottish Futures Trust is introduced or otherwise, the uncertainty introduced by the proposals could delay the development of critical Scottish waste management infrastructure and risk the imposition of EU fines if Scotland failed to meet its commitments under the Landfill Directive.