This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/scotland/south_of_scotland/7293290.stm

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
MSPs to debate Borders rail funds Rail funds commitment questioned
(about 4 hours later)
New funding arrangements for the Borders railway project will be debated by MSPs later. The Scottish Government has been accused of investing "not one penny" in a rail link between Edinburgh and the Borders since it came to power.
The Scottish Government said this month that a non-profit making firm would pay for the bulk of the costs of the rail link between Edinburgh and the Borders. Lib Dem MSP Jeremy Purvis also called for plans to fund the bulk of scheme by a non-profit company to be scrapped.
However, the Liberal Democrats, who are staging the debate, have claimed there is now confusion over the project. Transport Minister Stewart Stevenson defended the government's approach to the project and choice of funding.
The government has insisted the project will go ahead but the completion date has slipped from 2011 to 2013. He said it would allow the "expertise and innovation" of the private sector to help deliver the scheme.
Liberal Democrat MSP Jeremy Purvis said his constituents in the Borders have been taken aback by the new delays. It emerged last week that the project costs for reopening the Waverley line could be as high as £295m - more than twice the original estimate.
£130m withdrawn The completion date for the scheme had also slipped from 2011 to 2013.
He said he was "deeply concerned" by the new funding mechanism. The Borders aren't the slightest bit interested in where the money is coming from Stewart StevensonTransport minister
His comments came after Transport Minister Stewart Stevenson announced the withdrawal of £130m in government funding for the project, which had been earmarked by the previous Holyrood administration. Mr Stevenson confirmed plans to use a non-profit method to fund the line between Edinburgh and Tweedbank near Galashiels.
Mr Stevenson announced the establishment of a company, owned by the government, which would raise the money on the financial markets. However, Mr Purvis urged the Scottish Government to go back to funding the project directly.
The line between Edinburgh and Galashiels is now estimated to cost between £235m and £295m. "Since May 2007 not one penny has been invested by the government into this project and there has been a stall on the design process," said the MSP for Tweeddale, Ettrick and Lauderdale.
Mr Purvis has accused the Scottish Government of putting obstacles in the way of the project. He said "urgent clarification" was needed over the funding method and the timetable for setting up the non-profit making company.
"So far the SNP have added confusion where there should have been clarity," he said.
"They have added delay where there should have been progress.
"We need to restore the funding, up front capital funding from the Scottish Government, for urgent progress for the construction of this railway."
MSPs voiced concerns about the funding of the project
Mr Stevenson defended the government's record.
"Much has been made of the issue of finance," he said.
"As advised last week, we intend to deliver this scheme using a non-profit distributing (NPD) model.
"This means we will use the expertise and innovation present in the private sector to deliver this public infrastructure project."
He said it meant any "excessive profits" could be reinvested for the good of the community.
"The Borders aren't the slightest bit interested in where the money is coming from," he said.
"The Borders are interested in it being spent to deliver a railway for the benefit of the people of the Borders.
"Our plans will ensure this railway is built on time and on budget."
'No assurances'
Labour's Des McNulty said the funding method was "experimental" and "untested".
"Whether this project can progress is now dependent on the attitude of the banks to the funding package," he said.
He said the minister had given "no assurances" that funding could be in place for work to start within the lifetime of this parliament.
Tory Alex Johnstone said it was "disappointing but not at all surprising" that the project had suffered delays.
He also voiced concerns about the rail line covering only a "small area" of the Borders.