Opportunity
to seize impetus of fiscal stimulus to realise investment of 5 Edinburgh Schools
Following recent
fiscal stimulus announcements from Westminster and Holyrood, the timing could
not be better to seize the impetus provided by accelerated capital investment
to realise the City of Edinburgh Council's programmed investment for these five
Edinburgh Schools.
1.
Immediate fiscal stimulus :
Accelerate
Capital Expenditure to generate immediate fiscal stimulus to reflate the economy:
·
Accelerating
the construction of these essential public projects will maintain/regenerate
much needed employment in the construction industry with consequent benefits to
local and national economy
2. Provide better
value for money in both long and short term:
Implementing the
Wave 3 programme through accelerated investment will improve on the Council’s "preferred strategy ..... to deliver these new schools
as a single package...." but now over a shorter timescale with
consequent benefits.
- ·
Total
project value for 5 schools estimated in CEC's Business Case between £139.5m -
£147.7m or more, depending on which options are taken forward following parent
& community consultation. Delivery, at time of writing the business case,
was stated to be over a minimum five to seven year period at best, but more
likely to extend to more than 14 years overall.
- ·
Councils/Government
will likely be able to borrow money in 2009/10 at lowest rates known;
thereafter the cost of money will only increase.
- ·
Overall
programme costs clearly defined rather than being subject to inflationary pressures
if delivered over an extended time scale
- ·
Construction
costs in the immediate future are likely to be reliably and keenly competitive,
which was never the case within an overheated marketplace
- ·
Rolled
up as one flexible package under ring-fenced expenditure, there are further economic
advantages: Enables local authority to work flexibly and creatively with existing
and new building accommodation to programme managed decants more efficiently,
thus reducing construction cost through shortened duration of works - which has
benefits for school staff & pupils and communities affected by construction
operations.
3.
Enable Delivery on Policy Agendas: Education, Social & Welfare through
Infrastructure
Projects.
·
EU,
UK, Scotland, and Edinburgh ALL want this to happen
·
Delivery
can be guaranteed, through joined-up thinking, avoiding pitfalls of legacy of under-funded,
under-resourced schools compounded by issues over high tariff principles [PPI vs
Scottish Futures Trust].
4.
Deliver a complete school estate fit for purpose for teaching in 21st
century
·
Pupils,
staff and communities can flourish within new or refurbished schools that are efficient,
affordable and inspiring by way of an accelerated programme, rather than continuing
to muddle along within unacceptable premises in uncertainty. Enables Government’s
aspiration of “encouraging excellence and ambition in our schools so we can
build a world class education system that encourages every child to test the limits
of their abilities.”
A.
Removing Barriers, Joined-up Pro-active Government
-
Reconsider
procurement process for Wave 3 schools as a single entity, removing any barriers
that might halt or slow down delivery: in-line with best practice for public sector
projects.
-
Bespoke
Solutions: Utilise resources to adequately resolve inherent difficulties within
each individual school project - dealing with uncertainties created by legal
matters; market values of land sale or purchase, adequate decant provision to
name a few.
B. Statutory
Consents & Consultations:
- ·
The
requirement to obtain all necessary approvals will need to follow standard EU and
Government processes, but in rolling the 5 schools together, CEC & their
teams of consultants will have a greater ability to remove or make adequate
provision for risks and costs arising through the detailed development of each
project in turn.
Bringing these
processes forward and simultaneously will provide wide reaching benefits.
Examples of these are:-
1.
EU
Contractor tendering procurement processes [OJEU], can start earlier and run concurrently.
It should also be possible to select the most advantageous form of building
procurement route [using standard UK contracts] to suit the individual needs of
each project, which will likely vary, to achieve best value and deliver on budget
on time within an accelerated programme.
2.
Essential
detailed site/building investigation work can be carried out at an earlier stage.
3.
Planning
and where relevant listed building consent can be obtained earlier
4.
A
full off-site decant for any school will require statutory consultation – this demands
a great many resources for the many parties involved.
C.
Financing
·
Secure
the financial commitment and ring-fence funds for all Wave 3 school projects
·
Westminster
to agree to release the money. Holyrood with Local Authority to act decisively
and quickly - spend the money, now.
The stated aim by
Scottish Government and Edinburgh's Local Authority is to provide efficient,
affordable and inspiring school buildings through a cost effective redevelopment
programme with social and economic sustainability at its heart. This is, of
course, a view shared by school staff, parents, pupils, community residents and
local businesses alike.
There exists now an excellent if not unique opportunity: to embark upon implementing the Council’s Wave 3 schools programme "preferred strategy... to deliver these new schools as a single package...." but now over a shorter timescale, for less expenditure with reduced disruption.
It is hoped that
both local authority and national government will make every concerted effort to
ensure that financial commitment is now made to deliver these 5 projects
through a combined and accelerated programme. This practical and direct use of
fiscal stimulus will not only boost the construction industry, but will
introduce significant efficiencies in reduced cost and timescale and moreover,
provide a genuine and practical model of the stated commitment to deliver on a
number of wider issues at stake: serving as an example of the City's ambitions
stated in the Autumn issue of 'Capital Review', The Quarterly Economic Bulletin
from the City of Edinburgh Council, to "encourage
economic growth whilst maintaining and improving the high quality of life, social
welfare and environmental capital..... to become one of the most successful and
sustainable in northern Europe".
Background Information:
The Children
& Families Department Report will be made public at 10.00am on Friday 12 December
2008.
Summary Extracts
from CEC Wave 3 Consultation Documents
http://www.edinburgh.gov.uk/internet/council/council_business/council_consultations/wave-3-schools
INSPIRING
EXCELLENCE IN EDUCATION, WAVE 3 REPLACEMENT SCHOOLS
BUSINESS
CASE JUNE 2008
Introduction [Extract]
While Edinburgh has been able to build a number of new
schools in recent years, there remains a significant element of the estate
which requires investment. This business case sets out the case for investing
in our five ‘Wave 3’ schools. It clearly demonstrates the need to invest in
these schools through either replacement or refurbishment.
We are committed to sustainability and want to ensure that
we embrace good design as a means of achieving value for money and sustainable
development. We recognise our environmental responsibilities, not just during
construction but also in terms of operation and maintenance during their
lifetime. By working with parents, staff and the wider local communities I am
convinced we can create school buildings that will have a positive impact on
thousands of children, young people and their communities across the city.
Councillor Jenny Dawe
Leader of the City of Edinburgh Council
Executive Summary Extract
"The City of Edinburgh Council is pursuing a sustained
programme of investment in its schools estate to create an estate that is fit
for purpose for teaching in the 21st century. The Council has made significant investment in its
schools estate over the past ten years, and wishes to continue with a similar
level of investment by focussing on five schools known as the Wave 3 schools.
These comprise Boroughmuir, James Gillespies and Portobello High Schools, St
Crispin’s Special School and St John’s Primary School.
The total project value is estimated at £139.5m - £147.7m
depending on the options chosen. If new school sites are also required, the
total project cost will be significantly higher. The Council’s preferred
strategy would be to deliver these new schools as a single package over a time
frame of five to seven years. The delivery of the project within these
timescales would require a significant level of funding to be made at national
level over this period.
The Council has established an alternative funding route for
the schools which would see them being delivered on a phased basis over a
period of fourteen years. This extended timetable clearly presents issues for
the schools in their continued use of present buildings. It will also
significantly increase the total project costs as a result of construction
inflation.
The purpose of the submission of this business case to the Scottish Government is to open a dialogue over potential national funding streams which may become available over the next seven years, to allow the Council’s delivery of its preferred strategy."
The schools
selected for Wave 3 programme are:
Boroughmuir
High School
James
Gillespies High School
Portobello
High School
St
Crispin’s Special School
St
John’s Primary School
The aspiration
for the enduring value of all our school buildings should be to realise imaginative
and stimulating environments that surpass expectations of both occupiers and visitors.
They must be excellent buildings to encourage excellence within. By creating spaces
and facilities that surpass expectations within the community it serves, a
lasting value can be given. If these schools can enhance delivery of school and
community programmes, creating facilities for Edinburgh’s residents and
enabling them to identify with their City’s building fabric in a positive
manner, then these will be achieving a significant and enduring value.
In bringing the
Wave 3 programme forward as stated here, this should give CEC the ability to work
with school staff, pupils and parent councils alongside their teams of
consultants positively and creatively on how best to deliver the most
appropriate options for each school, without the considerable constraints of
resolving / juggling the myriad of unknown matters:
overall budget
allowance and hence, timescale, land sale and purchase, decanting pupils and staff
and construction cost uncertainty, whilst facing other pragmatic concerns such
as staff & pupil morale within increasingly unfit for purpose accommodation
and not least, disruption to delivery of school curriculum.
All cities are
judged on the quality of their institutions and civic buildings. Edinburgh's
next round of 21st
century
schools should express the ambitions, confidence and optimism it claims to be
striving for in the Wave 3 Business Case Report, not only for the sake of its communities,
but also as a means of investing in this remarkable city.
The Scottish
Parliament needs to encourage and support such ambitions unreservedly in Edinburgh
and throughout Scotland, to seize the impetus of this fiscal stimulus to
realise essential public works supporting Westminster's aim to head off a long
term severe economic recession.
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