Meeting of the Parliament

Meeting date: Wednesday, February 8, 2023

Official Report 1297KB pdf

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A9 Dualling

The next item of business is a statement by Jenny Gilruth on A9 dualling update. The minister will take questions at the end of her statement, so there should be no interruptions or interventions.

14:51  

I welcome the opportunity to provide an update to Parliament on the A9 dualling programme.

The A9 cuts through the heart of Scotland—some call it the spine of Scotland—linking lowland with highland. It is a vital route for the people and businesses of the north of the country and it is a road on which we have witnessed a devastating increase in fatalities in recent times.

Before Christmas, I committed additional investment of £5 million from the Government to improve short-term safety measures on the A9, but I am very clear that the main route to improving road safety will be in the full completion of the dualling programme between Perth and Inverness. That has been a long-standing commitment of this Government, and we remain absolutely committed to fulfilling it.

I recognise the significant public and parliamentary interest in the progress of the route, championed by organisations such as the A9 dual action group, representatives of which I met very recently, and by members of the Parliament, whom I have met on a number of occasions in recent times to discuss the A9.

As MSPs will know, we have recently been actively progressing the procurement of the next section of the programme, between Tomatin and Moy. That process has now concluded, and I take the opportunity today to advise members of the outcome and to provide an update on the remaining sections of the programme.

Before I turn to those matters, it might be helpful to reflect on both the scale of the programme and the progress that has been made thus far. The programme comprises 11 projects, which together will provide approximately 80 miles of new dual carriageway between Perth and Inverness. With an estimated cost of £3 billion at 2008 prices, it is one of the largest infrastructure programmes ever undertaken in Scotland.

Two of the 11 projects, providing more than 10 miles of new dual carriageway, are complete and open to use. Those are the Kincraig to Dalraddy and Luncarty to Pass of Birnam sections, which opened in September 2017 and August 2021 respectively.

Ministerial decisions to complete the statutory process have been confirmed for eight of the nine remaining projects. That covers more than 92 per cent of the length to be dualled. For the one remaining section, we are continuing to progress the Pass of Birnam to Tay crossing project and to identify a preferred route option following an innovative co-creative process with the local community. An announcement on the preferred route there will be made this spring.

Our investment of more than £430 million to date has meant that much has already been achieved. All of that has been done alongside the successful delivery of a number of other significant investments by the Government, including the Queensferry crossing, the Aberdeen western peripheral route and the M8 motorway improvements, delivering tangible benefits to lives across the country on a daily basis. Although much is still to be done, this Government is absolutely committed to completing the A9 dualling programme.

Separately, as was previously mentioned, in recognition of the immediate road safety concerns following fatal accidents that occurred on the route in the second half of 2022, I announced an investment of approximately £5 million in additional road safety measures for the A9 back in December. I am pleased to confirm that those safety measures have now commenced and are progressing well, as was confirmed to me by Bear Scotland at the A9 safety group meeting that was held last week in Inverness.

That work includes enhancements to signing and road markings, initially between Birnam and Dalguise, and the installation of electronic signs to display safety messages between Perth and Inverness. Furthermore, a road safety campaign targeting driver fatigue will begin next week, on 13 February, and preparations for a “drive on the left” campaign are well under way ahead of a launch this Easter. Next month, I will convene a stakeholder summit with the car hire companies that serve our main airports, to discuss further work that we can undertake with the sector to improve foreign drivers’ understanding of the A9.

My sympathies continue to be with everyone who has lost a loved one on Scotland’s roads. One life lost on any of Scotland’s roads is, of course, one too many. As a Government, it was imperative that we responded to the devastating increase in fatalities on the A9, and I am hopeful that those more immediate measures will help to support a reduction in road traffic accidents.

On the outcome of the procurement of the Tomatin to Moy project, three bidders were invited to participate in a procurement exercise back in December 2021, with final tenders required to be submitted by October of last year. That coincided with external factors including the pandemic, disruption caused by Brexit, and the war in Ukraine. The inflationary impacts of all of those factors impacted significantly on the construction market.

Unfortunately, the final return yielded only one tender submission. The anticipated cost of the construction contract was £115 million. Following careful consideration of the tender, the price of which was significantly higher than expected, even allowing for the real-world impacts of the volatile economy, ministers have concluded that an award of the contract at this time would not represent best value for the taxpayer. At any time, but particularly in the current climate, protecting public finances is an essential part of responsible government.

Members will appreciate that, due to commercial confidentiality, it would be inappropriate for me to provide any further details of that bid, but I make clear our firm intention to retender for Tomatin to Moy at pace and with some urgency. I can confirm that the tenderer concerned has been informed of the decision in respect of the procurement.

I fully appreciate that this will be disappointing news for many people. However, I want to make it absolutely clear to members in the chamber, and to the communities and businesses served by the A9 between Perth and Inverness, that the Scottish Government’s commitment to dualling the section between Tomatin and Moy remains absolute.

It has been a difficult decision to make, but we believe that it is the only responsible one to take, given the circumstances. I reassure members that Transport Scotland is already taking the necessary preparatory steps for the retendering of the Tomatin to Moy project. Work has begun to update the contract terms, and work will continue on preparations for the new procurement for Tomatin to Moy with the firm aim of achieving a contract award before the end of this year.

At the end of last year, I invited members of the Scottish Parliament to meet Transport Scotland and wider stakeholders to discuss the range of short-term proposals for investment in the A9, specifically in relation to the increase in fatalities that we have seen on the route in recent times. To that end, and in a similar spirit, I propose that, soon after the retendering process commences, I will convene a meeting with interested MSPs, Transport Scotland and relevant stakeholders to discuss the next steps. MSPs should have a letter from me this afternoon about that.

It is imperative that MSPs are engaged in that work, and I recognise the rightful strength of constituency interest in that regard. As part of the retendering process, Transport Scotland will engage with representatives of the construction industry, including the Civil Engineering Contractors Association, on how elements of its standard terms and conditions for such projects might be modified to encourage more bidders to participate in future. We also need to recognise, however, that the construction market has changed substantially in recent years. We very much want to work with the supply chain while securing a good deal for the Scottish taxpayer.

Undoubtedly, the delivery of the overall A9 dualling programme has been impacted by a number of external factors. Although good progress has been made in securing the statutory consents, as for many other construction projects across the world, progress has been significantly disrupted by the pandemic. In addition, I do not need to remind members that the United Kingdom economic climate has been extremely volatile in recent times, particularly in the immediate aftermath of the UK Government’s mini-budget in September 2022.

Members will also be aware that Transport Scotland has been assessing the most suitable procurement options for the remaining sections of the A9 dualling programme. Following the principles of the Scottish public finance manual, that work has included consideration of whether procurement should be on the basis of a series of capital-funded design and build contracts similar to those used for the recently completed Luncarty to Pass of Birnam project or whether a smaller number of larger-scale, resource-funded public-private partnership contracts similar to those used on the Aberdeen western peripheral route should be used instead.

Due to the recent economic volatility, including the impact on borrowing costs of the UK Government’s mini-budget, it has been necessary to look at the impact of market changes on the available procurement options. In the light of the outcome of the Tomatin to Moy procurement process, that assessment must now consider the potential cost implications of any changes to the terms and conditions in our roads contracts.

Members will know that the original completion date for the dualling of the A9 was scheduled to be 2025. As MSPs will now understand, that timescale is simply no longer achievable. However, I will set out a revised timescale as soon as possible, seeking to minimise delay as far as possible. It is true that the target date that was originally set was always an ambitious challenge. It was also reliant on the timely and positive outcome of a range of factors such as the completion of public and stakeholder consultation, statutory approval processes, market capacity, supply chain availability and the availability of funding—all of which have been significantly impacted by the events that I outlined earlier. That has made the 2025 deadline simply unachievable.

I appreciate that members will want to know what the new target date for the completion of the A9 dualling programme might be, as do I. As I previously stated, Transport Scotland is urgently considering a range of different options, to provide ministers with advice on the most efficient way to dual the remaining sections. I expect to have that advice by the autumn of this year, at which time I will update Parliament and put forward a renewed timescale for completion.

I reiterate the Government’s unwavering commitment to delivering the benefits of the completed A9 dualling programme to the people of Scotland. We will support that commitment by continuing the work to obtain the outstanding statutory consent for the Pass of Birnam to Tay crossing project and by completing the required land acquisition as soon as possible. We will also urgently engage with industry partners, working together to progress the Tomatin to Moy project in a way that offers a good deal for Scottish taxpayers.

The Government committed to dualling the A9 for a good reason. Dualling of the route will improve connectivity between the central belt and the Highlands of Scotland, deliver better opportunities for tourism and business and fundamentally improve road safety on the A9, as well as the lives of people who live in communities alongside the route. The Scottish Government’s resolute commitment to full dualling of the A9 remains absolute. I look forward to continued engagement with members as we refocus our efforts to deliver the outstanding sections of the road in as timely and efficient a manner as possible.

The minister will now take questions on the issues that she has raised in her statement. I intend to allow around 20 minutes for questions, after which we will move on to the next item of business. I ask members who wish to ask a question to press their request-to-speak buttons.

I welcome the temporary road safety measures that are currently being implemented. However, communities along the A9 in Perthshire and the Highlands have been waiting for more than a decade for the Government to fulfil its commitment to dualling the A9 in its entirety from Perth to Inverness. In that time, barely 10 miles have been completed out of a total of 80 miles—just one eighth of the total project. Today, we might have hoped for some positive news from the minister or some detail on the timetable for the long-delayed completion. Instead, all we have is more bad news, with a further delay to the Tomatin to Moy section. The minister could tell us nothing about what the progress will be on the remaining sections of the road. No details, no timescales and no hope—just empty words, repeated over and over again, about the Government’s unwavering commitment.

Actions speak louder than words. Last year, 12 people lost their lives on single-carriageway sections of the A9. More people will die this year, next year and the year after as the Scottish National Party promise is not delivered. Can the minister give us any indication of when the long-standing commitment will be met and when the long-delayed and vital road safety project will be completed?

I recognise the strength of interest from members, and particularly Mr Fraser, who raises the issue of the A9 with the cabinet secretary and me on a fairly regular basis, noting his own interest in his region. I recognise that other members from the area do likewise.

Fundamentally, the Government has faced a number of challenges in recent times. Murdo Fraser might have heard the Deputy First Minister giving a response to a question from a member on the Conservative benches earlier this afternoon in which he set out some of the recent financial challenges that the Government has faced. First, there is the impact of the pandemic, which cannot be understated, particularly in relation to the construction industry across the piece—not just in relation to road building. Secondly, there have been inflationary impacts in relation to Ukraine and, layered on top of that, impacts from Mr Fraser’s colleagues down south in relation to the mini budget. All of that needs to be considered in its totality. That is why the work that Transport Scotland is undertaking to assess the market implications and determine where we can make the best progress in the quickest and most efficient way is hugely important.

I recognise some of the challenges here, and that is why, this afternoon, I have written to members to reassure them about the approach that I intend to take, working with members such as Mr Fraser.

It is worth reflecting on the fact that we have made progress in recent times. As I mentioned, we have invested £431 million in delivering the dualling programme. Of course, we need to adhere to statutory processes in relation to roads building, and that takes time. As the responsible minister, I would like to be able to move more quickly on this, but I recognise that there are processes that we need to adhere to in relation to road building.

More generally, I am keen to come back to the Parliament later this year with an update. The Tomatin to Moy section of the A9 has been challenging in ways that I do not think that ministers expected. It has been quite an unusual situation, as we have had only one tender in this instance. Therefore, we are moving forward at pace on the retendering of that specific section, and I will come back to the Parliament later in the year to set out the timeline that the member has asked for.

This is a total betrayal of the Highlands. It is a broken promise—I wonder whether the Government ever intended to keep it.

The scale of the project is exactly the same as it was 16 years ago—sadly so, given the lack of progress and the lives that are being lost on that dangerous road.

This is an issue of the minister’s Government’s making. Had it even attempted to adhere to its own timescales, contracts would have been awarded by now. It is also shameful that, on the day that Volodymyr Zelensky is addressing the UK Parliament, SNP ministers are trying to blame the war in Ukraine for their failures to deliver a manifesto pledge from 2007.

Will the minister now come clean on the estimated timescale for dualling the A9 to Inverness? If she cannot answer that, can she at least give an indication of when the routes between Inverness and Dalwhinnie and between Perth and Ballinluig will be fully dualled? Further, will she now apologise to the people of the Highlands for this gross betrayal?

I ask Ms Grant to reflect on some of the other investments that the Government is delivering in the region that she represents. Only last week, I opened Inverness airport station—a significant investment in the local area that will help to improve connectivity.

Ms Grant mentioned the recent increase in the number of fatalities on the road. She attended the meeting that I convened with MSPs to look specifically at that issue and ask questions of BEAR Scotland and Police Scotland. It is hugely important to recognise—as, I am sure, she does—the additional investment in the short-term measures that I announced at the end of last year, which will help to improve safety on the route.

Ms Grant has asked about a timetable. I think that I gave Mr Fraser an answer to his substantive point on that and said that work is being taken forward to consider the outstanding sections in their totality to determine the most efficient route for delivery. I will come back to the Parliament to update members on that later this year.

I am certain that correspondence is already coming in from constituents who are extremely disappointed and concerned about the news regarding the route from Tomatin to Moy. I share their disappointment. I cannot overstate how difficult it will be for locals to believe that this project will be carried out in the face of another delay, and I hope that the minister is able to provide an assurance that the Scottish Government remains committed not only to the project but to the people of the Highlands, amid continued accidents and fatalities on the road that it has committed to dualling. Can she give some more detail on how severely the restart of the procurement process could delay the dualling of that stretch of road, and can she say whether there is an issue with the Transport Scotland procurement process that makes it unattractive to bidders?

I thank Emma Roddick for her question, and I want to give her the reassurance that she seeks in relation to the people of the Highlands. She was at the opening of Inverness airport station last week, so she knows how committed the Government is to continued investment in that part of the country. I very much recognise her interest in the route as a local MSP.

Transport Scotland’s design and build works contract has been successfully implemented for the past 20 years. Emma Roddick asked a question on the challenges with the process, which is all being considered in the round in relation to how we move forward at pace. If we need to change the way in which Transport Scotland approaches those projects, that will of course be looked at, because we need to make sure that we attract as much opportunity for investment as possible and that bidders are not put off by the process.

It is fair to say that, in recent years, there has been a decline in the numbers of tenderers, and we understand from industry contacts that that is largely due to the terms and conditions that are in our contract, including risk transfer. As I mentioned, Transport Scotland is reassessing that approach in the light of current market conditions. That work sits alongside changes that we might have to take in the future. We will look carefully at how we can get the best balance between achieving cost certainty and making our contract attractive to the market by looking at appropriate risk allocation—which is fundamentally important—as well as looking at the role of contracting parties and improving collaboration between Transport Scotland and the contractor.

The minister admitted today what we have all known for some time: the 2025 date will not be met. Communities along the A9 and road users have been kept in the dark on when and if the project will be completed.

Currently, how many years behind the original timescale is the project? When was the minister first told that the 2025 date would not be met?

I thank Jamie Halcro Johnston for his questions.

Work on that is on-going, as I have said, and will report later in the year. I would like to come back to the Parliament later this year to give an update and reassurance in relation to the deadline.

Of course, we have to fulfil statutory processes when carrying out any major roads project in Scotland. It is clear that market conditions at the current time would not have allowed us to deliver the full dualling programme within the original timescale as previously set out, regardless of the delivery model that we choose. Therefore, we are looking at the optimal delivery programme to give certainty to the public. I recognise Jamie Halcro Johnston’s point in that regard. That is why, of course, I have been working closely with MSPs, including him, on how we can better work with communities to ensure that they understand the next steps for the programme. To that end, I have written to members this afternoon to invite them to engage with me and Transport Scotland on the next steps in the delivery of the project.

Today’s news will be met in the Highlands with shock, incredulity and anger. Why does Transport Scotland, unlike its counterpart south of the border, put all the risks of unforeseen costs on contractors? Surely, that makes—and has made—bidding less attractive. Nearly two years into this parliamentary session, why do we still not have a revised timetable to replace a deadline that every person in the Highlands knows was never going to be achieved?

I thank Mr Ewing for his question and I recognise his strength of feeling about the A9, in particular, but also about the A96, which is in his constituency. We have met, in his constituency and in Parliament, to discuss the A9 and the A96 on a number of occasions. I am keen to work with the member on supporting his interests and those of other interested MSPs, because it is important that we get the next steps right.

I have outlined to members some of the challenges that we have faced in recent times. We had keen interest at the industry event days when the tender for Tomatin to Moy was first launched, and that was positive. At the beginning of the procurement process, three contractors pre-qualified for the bid. One of those withdrew early in the process, and another withdrew on the day before tenders were due for submission, which meant that only one tender was submitted. As I mentioned in response to Ms Roddick, Transport Scotland’s design and build works contract has been used for more than 20 years.

Some of Mr Ewing’s points are fair and they will all be considered in the wider work on how we move forward at pace on the totality of the sections of the route on which dualling remains outstanding.

As I mentioned in response to one of the Conservative members, there has been a decline in the number of tenders that are coming forward, so we need to look at the approach that we use in Transport Scotland. That will be addressed fundamentally as part of the wider advice that will come to ministers in the autumn, to ensure that, going forward, we have the best approach in Transport Scotland to attract the highest possible numbers of bids in order to deliver the programme as efficiently and timeously as possible.

The minister has said several times today that the Government is absolutely committed to fully dualling the A9. Are the Greens fully committed to dualling the A9? Yes or no.

I am not a Green Party minister.

The A9 in my constituency is fully dualled, but the proposed Shinafoot junction has been an on-going concern for local folk for many years. Following the minister’s visit to Shinafoot junction last year—for which I put my thanks on record—I was delighted to learn that the local authority had listened to local concerns and rejected a housing developer’s plan to put only an off-slip in place. A requirement for continuation of the housing development was that there would be both an on-slip and an off-slip.

Can the minister say anything about what she will do to ensure that she will, as the A9 developments continue, press to ensure that the incredibly dangerous junctions are given proper consideration to ensure that they are safe for people who are trying to navigate them?

Jim Fairlie has raised a fair point. I met him and community representatives to discuss their concerns about the Shinafoot junction. As I noted at the time, the junction proposals were subject to on-going planning considerations by the local authority. My officials are still in dialogue with Perth and Kinross Council and local developers on the matter, to ensure that safety on the A9 is maintained at that location, and that access to and from the local community is improved, where possible.

It was really helpful to make a site visit with Mr Fairlie to see the challenge. Of course, responsibility sits with developers to develop proposals for what is necessary to access their development. I am more than happy to continue that dialogue with Mr Fairlie, who will convey his constituents’ interests on the section of the route that he identified.

I thank the minister for advance sight of the statement. I think that Fergus Ewing and Emma Roddick have eloquently expressed the reaction that there will be among people in the Highlands to the announcement that the promise on dualling the A9 has, in effect, gone the same way as the promise on rolling out superfast broadband.

However, the A9 does not stop at Inverness. What reassurances can the minister offer to communities north of Inverness that the Government is committed to investments in improvements to safety on that part of the road?

The Government is absolutely committed to continuing those investments. I reassure Liam McArthur, and observe more generally, that investment by the Government in road safety has been and will be increasing.

I have outlined some of the measures that have been taken. The short-term measures target the route between Perth and Inverness, but I recognise the other on-going challenges on the route north of Inverness. During the October recess, I met BEAR Scotland and Transport Scotland representatives to look at junction closures that will be happening north of Inverness. I am more than happy to write to the member with more detail on the financial investments that we have made in that part of the road.

It is clear from speaking to Perthshire constituents who live alongside the A9 that acceleration of road safety is everyone’s top priority. The minister has helpfully outlined some of the urgent safety measures that are being delivered. Can she update me on what consideration is being given to proposals to reduce speed limits on dangerous sections of the road, particularly the section between Birnam and Dunkeld?

We have no plans to reduce speed limits on the A9. Proposals to amend speed limits will generally emerge as outcomes of the national speed management review, when it concludes. I am more than happy to give Mark Ruskell an update on that work, which is on-going but is set to report in the coming months. The national speed management review will provide us with the evidence base to consider changes to be made in the future.

Inflation is clearly an issue in all this. The Finance and Public Administration Committee was told that the costs of some projects have gone up by 30 per cent, perhaps because of the war in Ukraine and Brexit. Is the minister concerned that we run the risk of tendering again and reaching the same outcomes of there being very little interest in tendering and a very high price?

I recognise the challenge that John Mason has outlined. As I think I mentioned in response to another member, we originally had three bidders that pre-qualified for the bid, which is important to observe. One of those bidders withdrew early in the process and another contractor withdrew on the day before tenders were due for submission. That resulted in only one tender being submitted. The outcome of that procurement competition was fairly unexpected and quite unusual. We have looked at some of the external factors that contributed to that.

Brexit and the situation in Ukraine—which John Mason mentioned—Covid-19 and, of course, the inflation that has been caused by the UK Government’s mini budget have all had broader impacts on the construction industry. The end of 2022 was an extremely challenging time for the construction sector more generally because, of course, we had peak inflation and additional market volatility.

Forecasts from the Building Cost Information Service show that the market is likely to settle in the coming months and years, and we anticipate that that will help us to get best value in the reprocurement exercise. Transport Scotland will, of course, engage with industry partners, including the Civil Engineering Contractors Association, to consider improvements that can be made to our design and build contracts—which have been the theme of some members’ questions today—to our contract delivery strategy and to the procurement mechanisms that we use.

Jenny Gilruth has put the A9 on hold today. The so-called “unwavering commitment” to deliver is empty. There is no delivery programme. Why does she think firms are showing a lack of interest in working with the Scottish Government? The issue has been known about for years, and does not exist elsewhere in the UK. What is the problem?

I am not sure that I agree with the premise of Mr Simpson’s question. It is worth my while to observe that Transport Scotland, through its market consultation, has been looking at feedback from the construction industry following the pandemic. It is important that we learn lessons from the pandemic and its implications for the construction industry more generally. That has given us an opportunity to look at, for example, closely sequencing construction work in a way that does not result in excessive disruption.

There have been several significant changes during the market consultation, including international impacts, which I have mentioned, and the challenging economic circumstances, which of course include the UK Government’s mini budget. It is important that Transport Scotland reassess its construction contracts more generally, in the light of that change. To answer Graham Simpson’s question, I note that we will look at how we can strike the best balance between achieving cost certainty and ensuring that our contracts are attractive to the market. That will be fundamentally important as we move forward with the retendering programme.

The announcement will clearly come as a disappointment to communities and people who have campaigned on the issue over the years, but it is important to focus on exactly how this has happened. Can the minister confirm that the decision has been taken at a time of extreme financial pressures globally, that it is based on an assessment of value for money and that it is in line with HM Treasury’s “The Green Book” requirements, which ministers are required to follow.

As I said, the outcome of the procurement competition was unexpected. We have touched on the external factors that contributed to that. The end of 2022 was a really challenging time at which to procure a major infrastructure project. We had peak inflation as well as market volatility more generally, which coincided with the end of the tender process.

Following a difficult and complex procurement procedure, Transport Scotland has decided not to award the contract for the Tomatin to Moy section under the current procurement competition. Having carefully reviewed the tender, we have concluded that it does not provide best value for the taxpayer at the current time. However, we will seek to secure continuous improvement in performance while looking to strike the appropriate balance between quality and cost. It is hugely important that our approach has regard to broader factors in relation to the economy, efficiency and effectiveness, and that it contributes to the achievement of sustainable development.

Gordon MacDonald’s question was well put; I am hopeful that the retendering process will deliver a range of options to allow us to move forward at pace.

The delay to the A9 project will have a knock-on effect on other road projects. The A96 was meant to be fully dualled by 2030. Will that commitment be met?

Douglas Lumsden will have received an invitation to meet the contractors who have carried out the substantive work in relation to the A96. I look forward to meeting the member and the contractors to talk about the review that has been carried out over the past year.

That concludes the statement. There will be a short pause before we move on to the next item of business, to allow the front bench teams to change position, should they wish to do so.