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Displaying 2137 contributions
Public Audit Committee
Meeting date: 17 December 2025
Jamie Greene
I find any assertion that any of this is value for money beyond the pale. Clearly, £335 million for a £90 million contract is not value for money. My issue really is: what faith can any of us have—as a Public Audit Committee or as a Parliament, or you as Audit Scotland—that any projections, either timelines or financial projections for the cost completion of the project, are going to be accurate? They have never been accurate. The accountable officer has never had accurate information from day 1. There has been slippage on the dates and the costs, which started at £110 million six years ago, and became £200 million, £220 million, £300 million, then £335 million. My question is, where does it end? What faith can we have that any estimates coming out of the business are accurate and reliable?
Public Audit Committee
Meeting date: 17 December 2025
Jamie Greene
I apologise but I think that we are short of time.
Public Audit Committee
Meeting date: 17 December 2025
Jamie Greene
Does public sector reform sound like cutting jobs in the public sector?
Public Audit Committee
Meeting date: 17 December 2025
Jamie Greene
That is interesting. I go back to the point about how the Government does that. It has to make ends meet, so it cannot spend more than it has, with the exception of some capital borrowing opportunities. You also said that there is some Scotland reserve money that could be rolled over, so there is some wriggle room in being able to dip into pots of money where the Government does not have it for the balance sheet.
Going back to the point about how the Government could best resolve the situation, public sector reform is clearly one area. Making cuts is never popular for any Government. On the other important bit about raising money, is that best achieved through simple tax raising? Are there other means of growing the economy, such as increasing the tax base or improving income from other taxation due to growth in the business sector, for example?
Public Audit Committee
Meeting date: 17 December 2025
Jamie Greene
That sounds eminently sensible, Auditor General.
Another area that I wanted to touch on, which is not in the report but is very much linked to what you have just said, is our net fiscal deficit. For the year that we are looking at in the consolidated accounts, the deficit widened to 11.7 per cent of GDP, which is more than twice the UK average of 5.1 per cent. That strikes me as a concern.
Also, public expenditure relative to GDP is 55 per cent in Scotland, while the UK average has been about 44 per cent. Those metrics seem to show that we are on slightly different tangents. I do not know whether that is good, bad or indifferent. One could argue that we spend more on public services so, of course, that will be a higher proportion of our budget, but that does not always make for better outcomes, does it?
Public Audit Committee
Meeting date: 17 December 2025
Jamie Greene
I think that other members want to talk about the performance framework, outcomes and so on, and they are interesting areas that we will come on to cover.
Other analysis tends to suggest that Scotland has an ageing and relatively unhealthy population, and that that could present a potential risk to resource budgets in future in meeting healthcare and support needs for an ageing workforce that is not getting healthier. Has Audit Scotland undertaken any analysis on more of a medium-to-longer-term view of the Scottish public budget and whether that is a trend that we should be concerned about and, therefore, flag to Government?
Public Audit Committee
Meeting date: 17 December 2025
Jamie Greene
Will the business come with any associated debt, according to your analysis of its accounts? In other words, has the Government loaned the business money meaning that someone would inherit that debt if they took the business over?
Public Audit Committee
Meeting date: 17 December 2025
Jamie Greene
Okay. The Glen Rosa has now been forecast to cost £185 million. That figure is reflected in your own report. Is there any understanding on your part that that will be covered by the Scottish Government? Your report makes a very specific reference in paragraph 75, which says:
“slippage and cost overruns ... represents a poor use of public money.”
That also seems to inhibit the Government’s ability to present proper accountable officer assessments of the costs of the projects.
Looking at the table that you submitted in exhibit 5, in layman’s terms, it seems that the cost over the last six years has just been spiralling out of control with an unending price attached to the project. Is it your understanding that there is simply a blank cheque available to get this job finished?
Public Audit Committee
Meeting date: 17 December 2025
Jamie Greene
I want to interrogate a little further because—certainly in politicalspeak—money is tight, times are tough, and so on. That is a message that the wider public will certainly perceive from how any Government manages public spend, and I guess that they will be wondering how on earth money can be tight when there is such a huge underspend in the budget. The question is: could that money have been used, or could it still be used, to avoid cuts or one-off savings in next year’s budget? That is a fair question.
Public Audit Committee
Meeting date: 17 December 2025
Jamie Greene
As you say, doing nothing is not an option.