Union Terrace Gardens Project (Business Plan)

– in the Scottish Parliament at on 15 March 2012.

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Photo of Richard Baker Richard Baker Labour

8. To ask the Scottish Executive when it received the business case for the Union Terrace gardens project in Aberdeen and when it will decide whether to approve it. (S4O-00796)

Photo of Alex Neil Alex Neil Scottish National Party

Scottish ministers have not yet received Aberdeen City Council’s tax increment financing business case for its city centre regeneration plans, which include the city garden project. Aberdeen City Council is working with the Scottish Futures Trust to develop the business case, which will be considered by Scottish ministers in due course.

Photo of Richard Baker Richard Baker Labour

Given that the business case was published in the Aberdeen press some weeks ago and the referendum has passed, I am somewhat surprised that the cabinet secretary has still not received the business case for this vital project. When does he expect to make a decision on whether he will approve it, given that there is so much controversy about whether the business case for the Union Terrace gardens proposal stacks up? If there is a shortfall in the ambitious plans to raise additional revenue from business rates, will the Scottish Government assist in plugging any funding gap that may emerge in the project?

Photo of Alex Neil Alex Neil Scottish National Party

I repeat that we have not received the business case. It is difficult for me to comment on something that I have not received. However, I am sure that Aberdeen City Council, under the excellent management of some of my colleagues, will submit a robust business case and ensure that the council’s finances remain in a robust position. I am sure that Richard Baker will be glad to join me in wishing that that happens.

Photo of Mark McDonald Mark McDonald Scottish National Party

I put on the record my membership of Aberdeen City Council. I welcome Richard Baker’s acknowledgment that this is a “vital project”.

The cabinet secretary will be aware that, the more private sector financial backing is secured for the city garden project, the less money will require to be borrowed under tax increment financing. Will he join me in calling for further private sector donors to come forward and add to the £55 million that has been leveraged thus far from private sector donors—the majority from Sir Ian Wood—and pledged towards the project?

Photo of Alex Neil Alex Neil Scottish National Party

When we receive the business case, one of the issues that we will look at is the private sector leverage. Indeed, one reason why we asked for the business case to be submitted was that the projected private sector leverage in the proposal, as opposed to the business case, was very attractive. However, I will not be in a position to make a detailed comment on the business case until I receive it from the city council.