Cynulliad Cenedlaethol Cymru / National Assembly for Wales

Pwyllgor yr Economi, Seilwaith a Sgiliau / Economy, Infrastructure and Skills Committee

Comisiwn Seilwaith Cenedlaethol i Gymru / National Infrastructure Commission for Wales

Gan/From: Scottish Futures Trust

It appears that the intended National Infrastructure Commission for Wales will primarily be engaged in providing advice on infrastructure investment prioritisation. It further appears that you intend to structure it broadly as the UK Government’s commission and that key appointments will be made by the Government or Ministers. As such, it would most likely be publicly classified – as is Scottish Futures Trust. If any publicly classified entity borrows, the borrowing will count as public borrowing, and have to fall within budget limits. SFT’s role has been to develop and centrally manage a programme of Non Profit Distributing (NPD) projects across Scotland.   These projects see a private sector partner procured by a public Authority to design, build finance and maintain assets including schools and health centres (through the hub programme) and roads, colleges and hospitals as stand-alone NPD projects. It is the partner which raises the finance and delivers the asset. The classification of the partner entity, and the asset is according to the Eurostat rules which have recently been clarified through a publication on 29^th September. SFT has evolved the hub approach, which has a majority private and minority public shareholding in the delivery partnership, such that it is expected to be privately classified under the most recent guidance. Such a structure, with a partnership established through procurement, the majority of which is private, but with a minority public shareholding may be relevant to the work of your National Infrastructure Commission. I expect you would want to consider the prioritisation of infrastructure investment as a whole, the relative value for money and both short-term capital as well as long-term revenue budget affordability when considering potential arrangements. It would also be necessary to engage closely with the Office for National Statistics to gain clarity as to the classification of any corporate structure and contractual arrangements developed before taking projects forward.

Peter Reekie
Deputy Chief Executive & Director of Investments