UK Government backtracks on commitment to new bridge (North Tayside Liberal Democrats)

North Tayside Liberal Democrats <info@libdems.org.uk>

UK Government backtracks on commitment to new bridge

July 15, 2009 4:03 PM
Originally published by Scottish Liberal Democrats

UK Government Ministers have backtracked on a previous commitment to help fund the new Forth crossing, according to local MP Willie Rennie.

The Lib Dem MP quizzed Treasury Minister Stephen Timms on the funding of the new crossing at the Treasury Questions in the House of Commons.

Commenting Mr Rennie said:

"If we don't break this log jam we could see the decimation of almost every transport infrastructure project for several years.

"I was therefore disappointed that the UK Government backtracked on a previous commitment to help fund the crossing.

"First the SNP refused to use all the funding tools available in the bag. Now the Labour Government is stepping back.

"Its paralysis thanks to the intransigence of SNP and Labour Governments.

"The answer is to bring in new borrowing powers - fast - so that the Scottish Government can spread the cost over several years. It's up to the Labour Government to bring in those powers."

Notes:

1. Full transcript from yesterday's Treasury Questions in the House of Commons 14/07/09

9. Willie Rennie (Dunfermline and West Fife) (LD): What recent discussions he has had with the Scottish Executive on UK Government assistance for the construction of a new crossing over the River Forth. [286199]

The Financial Secretary to the Treasury (Mr. Stephen Timms): My right hon. Friends the former Chief Secretary to the Treasury and the Secretary of State for Scotland met the Scottish Finance Minister in March to discuss financing for a new Forth bridge.

Willie Rennie: I warmly welcome the acceptance that the UK Government should help the Scottish Government to fund this vital new crossing, but when will the Government come forward with real new money to help to pay for the bridge? Will they also consider speedily bringing in new borrowing powers for the Scottish Government, so that they can spread the cost over a number of years, as has been proposed by the Calman commission?

Mr. Timms: I am glad to recognise the importance of the second Forth crossing, and to support the importance of its construction. Funding, however, is a devolved decision, and this is a matter for the Scottish Executive to determine. My right hon. Friends offered flexibility to help within the economic framework applying to the UK as a whole, and I hope that that flexibility will allow the project to proceed.

Rob Marris (Wolverhampton, South-West) (Lab): Can my right hon. Friend assure me that the Government will hold firm on this? Scotland already gets shedloads of extra money under the Barnett formula. It is entitled to raise its own taxes, and this Government should stand firm against this bridge, for which it wants even more money.

Mr. Timms: My hon. Friend makes a forceful point. Let me simply say that this is an important project, but it needs to be carried out within the economic framework applying to the UK as a whole. My right hon. Friend the Chancellor has just set out some of the Government's constraints and objectives in relation to the public finances over the next five years, and this decision needs to be made within that context."