WIREDGOV

Deputy First Minister John Swinney has advised that the EU’s statisticians – Eurostat – have been asked by the Office of National Statistics to look at a number of issues raised by the classification of the AWPR project, as he updated parliament on the latest position.

In answer to Parliamentary Questions yesterday. Mr Swinney said:

“I provided updates to Parliament on 2 February and 31 July regarding the Office of National Statistics (ONS) review of the Aberdeen Western Peripheral Route (AWPR).

“ONS concluded that the AWPR should be classified to the public sector under the new Eurostat rules and guidance which took effect in September last year. I instructed the Scottish Futures Trust (SFT) to engage with ONS to clarify the interpretation of the rules that underpinned their decision and consider the scope for making contractual changes to the project which could secure ONS’ agreement that reclassification to the private sector would be appropriate.

“I am grateful to ONS for prioritising this work. They have now advised that, as a result of SFT’s further engagement on the substance of their July decision, there are a number of points that they wish to refer to Eurostat for further consideration. This reflects the complexity of the issues with which we are dealing.

“It will not therefore be possible for SFT to submit proposals for revisions to the AWPR contract until Eurostat have had the opportunity to respond to the points of clarification that are being raised with them, which may take several weeks.

“I have previously advised Parliament that, while ONS was undertaking its review, there would be some delays in reaching financial close on a number of projects within the Hub programme, because of the need to reflect on ONS’ findings.

“In April, I authorised SFT to take forward initial changes to the hub model aimed at reinforcing a private sector classification, while recognising that further changes might be needed after ONS had reported. This work is proceeding well.

“SFT has submitted proposals to ONS and it is likely that they will be in a position to respond by late October or November.

“I have given careful consideration to whether, in the interim, Hub projects that are currently in the pipeline should be advised that they can reach financial close in advance of the ONS responding. In doing so, I recognise and share the concerns of project partners and other stakeholders.

“The Government remains committed to the Hub programme. However, I must also take into account the risks that could arise as a result of taking projects to financial close in advance of ONS reaching a conclusion. As a result, I do not expect it to be possible for these projects to reach financial close over the coming weeks. SFT will engage closely with project partners to consider the implications for them and I will of course keep the position under close review.”

Mr Swinney continued:

“I reiterate to Parliament that the Office for National Statistics’ conclusions will have no impact on the timetable or cost of the AWPR project itself.”