David Stewart MSP

David Stewart urges Government rethink on contribution to flood alleviation schemes

26 February 2011

Highlands and Islands Labour MSP David Stewart has urged the Scottish Government to rethink its funding contribution to flood alleviation schemes, after one in Elgin cost Moray Council much more than had been expected.
Speaking in Parliament, he welcomed the beginning of work on the £86million Elgin Flood Alleviation Scheme, which when completed will remove a flood risk for hundreds of homes and businesses.
However, he also highlighted Moray Council’s concerns that it will have to pick up a larger share of the cost of the £86million flood prevention scheme than had been anticipated.
Mr Stewart also asked Minister Roseanna Cunningham if she would review funding of such schemes in future.
The council was originally to have received 80% of the cost of the scheme, which would have meant it would have been forced to borrow £17.2million.
However it has now emerged that Scottish Government Ministers are intending handing over 64.5%, which is £55.6million, leaving the council to borrow the outstanding £30million.
The cost of financing that borrowing is estimated to be about £2million a year to the council over a 40-year
period, with £1million of that attributable to the shortfall in funding received from central Government.
Mr Stewart said: “While it’s obviously great news that work has started on the scheme I am concerned at the amount Moray Council is having to contribute towards the cost.
“I hope the Minister will look at the funding of future flood alleviation schemes to make sure the burden on local authorities does not become too onerous.”

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Written by davidstewart

February 28, 2011 at 10:08 am

Posted in Uncategorized

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