The leader of Dundee City Council has called on UK Labour leader Jeremy Corbyn to apologise for the “legacy of debt” he says the party left while in power in the city.
SNP council leader John Alexander says the previous Labour administration pursued a “build one, pay for two” policy on building schools, leaving the current council with an £11.6 million bill next financial year.
Labour built eight schools in the city under Private Public Partnership (PPP) funding with the bill making up almost three quarters of the £15.7 million deficit in this year’s council budget.
PPP involves private companies paying for a public building, such as a school or hospital and then recouping their investment by renting it back to the public body for a set period of time.
Councillor Alexander said Dundonians would be “appalled” at the cost and called on both Corbyn and Scottish Labour leader Richard Leonard to apologise while the pair are in the city for the party’s annual conference.
He said: “It’s quite galling that the Labour Party conference is being held meters from my office, at a time when our administration is still grappling with Labour’s mismanagement.
“Deals signed by the previous Labour-led administration mean that this council must pay £11.6 million next year alone, to private firms who ultimately, own those schools.
“That’s shameful and something which they should reflect on whilst they are patting themselves on the back in the Caird Hall.”
The schools built under PPP are Grove Academy, St Pauls Academy, Claypotts Castel PS, and Fintry PS, as well as St Andrews PS, Rowantree PS, Craigowl PS and Downfield PS.
The last agreement was signed in 2006 while Labour were in power in the city.
The party, who were in a coalition with the Liberal Democrats, lost control in 2009 after the SNP won a shock by-election. Labour had ruled in the city for 35 years.
In 2016/17, ongoing costs associated with PPP schools equalled £11 million, rising by another £600,000 in the year £2018/19.
Councillor Alexander added: “This model results in a scenario where you build one, pay for two but don’t own any until the end of the deal — on what planet does that seem like a good deal?
“The public have had to endure the Dundee Labour Party’s hypocritical statements in the press recently, deploring decisions which have only had to be made because of their legacy and Tory austerity.”
