Controversial PFI finance under scrutiny in parliamentary review

CONCERNS over the thoroughness of school inspections carried out by councils have emerged at the beginning of a parliamentary investigation.

The move has its roots in the collapse of a wall at Oxgangs Primary School, Edinburgh, last year and the subsequent closure of 17 schools in the city as a series of safety defects came to light.

In total, moe than 8,000 children were affected by the closures, including primary and secondary pupils. Similar problems were found at other schools elsewhere in Scotland.

Following the closure, Edinburgh Council launched an independent inquiry led by leading architect Professor John Cole.

At the time, the role of the controversial Private Finance Initiative (PFI) was raised, with worries that the profit-based model had been a contributing factor in safety short-cuts.

Mr Cole concluded the financing method in itself was not responsible for the defective construction, but he did say aspects of the way in which

PFI was implemented “increased the risk of poor quality design and construction”.

This included a lack of independent scrutiny of the construction and an overreliance on the part of the council that others would fill this role.

The Cole report also noted a desire to control costs influenced decisions around inspection and scrutiny.

Following the publication of his report, MSPs on the Education Committee have decided to take a closer look at the school estate.

A range of experts from building contractors, Scottish Government representatives and council officials will all be summoned to give evidence.

The use of PFI will be raised and the committee will explore how authorities can assure parents schools buildings are safe. The committee will also focus on what lessons can be learnt in the management of future school building projects.

James Dornan, the committee convener, said: “There have clearly been some high-profile cases, but our work will explore what the picture is across Scotland and, more importantly, what lessons can be learned to ensure this will never happen again.”

Education Secretary John Swinney has welcomed the inquiry, but said “robust guidance” had already been provided to public sector bodies across Scotland on the findings of the Cole Report.

For the teaching unions, the fact PFI contracts continue to place councils under financial strain is a key part of the inquiry.

The Educational Institute of Scotland, said the biggest issue for schools was ongoing PFI contracts that were “sucking money out of schools”.

However, Scottish Tory education spokeswoman Liz Smith said the Holyrood inquiry should focus on pupil safety rather than PFI.

Since 1999, a total of 979 schools have been either rebuilt or substantially refurbished, which represents about a third of the school estate. These projects have been funded through a combination of traditional capital financing as well as PFI or through the Scottish Futures Trust.