SNP BLOWS £135M OF YOUR MONEY ON FAILED LOANS
Ministers accused of using cash ‘like gambling chips’ on debt losses
AN eye-watering £135million of taxpayers’ cash has been written off by the Scottish Government following a series of ‘failed investments’.
Ministers were accused last night of using public money as ‘gambling chips’ after official annual accounts exposed a huge reduction in the value of loans and guarantees to the private sector.
These include a £45million loan to the Ferguson Marine shipyard on the Clyde – which is now ‘unlikely to be repaid’ – while £37.4million worth of investment in Fife engineering firm Burntisland Fabrications (BiFab) is now worth only £2million.
The £39.9million loan used to prop up Prestwick Airport, in Ayrshire, is now worth £6.9million – and £21.4million used to provide guarantees to a hydro plant and aluminium smelter in Fort william, Invernessshire, is unlikely to be recovered.
Scottish Liberal Democrat leader willie Rennie said: ‘Ministers are using taxpayers’ money as gambling chips but never seem to have to face the music when the deal goes wrong. It is time for the SNP to stick to a
more rigorous financial strategy that respects the tax revenues with which they have been entrusted.’
The Scottish Government bought lossmaking Prestwick Airport for £1 in 013 to save it from collapse and propped it up to the tune of nearly £40million – but has now written off £33million.
A report on the annual accounts by the Auditor General for Scotland said this is down to ‘expected losses in line with new accounting requirements’ – but noted a sale of the airport is due to be concluded in this financial year.
BiFab received £37.4million by the end of March, mainly to help with additional costs from a wind farm contract. This investment is now valued at £ million.
Ferguson Marine Engineering Limited in Port Glasgow, Renfrewshire, was awarded £15million in 017 and another £30million last year. But the site operator went into administration last month, leading to the view that ‘the loans were unlikely to be repaid’.
Financial guarantees given to Lochaber Aluminium Smelter were devalued £ 1.4million to zero after ‘a review of expected credit losses’.
The Auditor General also warned of ‘unprecedented challenges for the Scottish Government’s management of public finances’ as a result of Brexit, adding there is ‘no detail’ on how ministers will address a £1billion shortfall in tax revenues created by lower than expected levels of economic growth.
Scottish Tory finance spokesman Murdo Fraser said the £135million that had been ‘written off’ was a ‘staggering waste of public money which is entirely in keeping with [Finance Secretary] Derek Mackay’s total failure to manage public finances – he is out of his depth’.
The Government said its ‘support for private companies has protected hundreds of jobs and ensured key economic assets have been saved’.
A spokesman added: ‘There’s an extensive framework of legislation, economic policy, procedures, practice and expertise that guides and supports sound decision-making on financial interventions involving private companies.
‘Where ministers decide to make investments directly through the Scotfrom tish Government, accountable officers must ensure appropriate diligence and consideration is carried out before any commitment is made to invest.’
Mr Mackay said: ‘We operate in a challenging financial climate – the increasing risk of a No Deal [Brexit] remains the biggest threat to our economy and public finances.’
‘Staggering waste of public money’