§ Mr. Charles KennedyTo ask the Secretary of State for Scotland whether the private money involved in the Skye bridge private finance initiative has been classified as public borrowing; and if she will make a statement. [26718]
§ Mr. FoulkesIssues relating to the Skye bridge are devolved under the Scotland Act 1998 and now fall within the responsibility of the Scottish Executive. Skye bridge was designed, built, financed and is operated under a PFI contract by Skye Bridge Ltd. (SBL). Under the Concession Agreement, signed in December 1991, SBL invested £28 million (1991 prices), the bulk of which was provided by a combination of commercial bank debt, a European Investment bank loan and index-linked loan stock. This private funding is not classified as public sector borrowing.