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RECAP

RECAP. Construct a mind map showing how councils get their money. HOW COUNCILS GET THEIR MONEY. Public Private Partnerships (1).

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RECAP

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  1. RECAP Construct a mind map showing how councils get their money. HOW COUNCILS GET THEIR MONEY

  2. Public Private Partnerships (1) Local councils throughout Scotland have struggled financially in recent years to carry out essential repairs and maintenance in schools. In 1996, Glasgow City Council carried out a large project to tackle this problem and assessed all their schools. It was decided that the most financially viable option was to shut down any school that required a substantial amount of money spent on them to bring them up to adequate standards, the number of Glasgow secondary schools decreased from 39 to 29.

  3. Public Private Partnerships (2) • Glasgow City Council saved millions by closing down schools. • The Scottish Government gave a substantial amount of money to local authorities, however, there was still a shortfall in funding. • The Scottish Government encouraged Glasgow City Council to go into partnership with private contractors.

  4. What are Public Private Partnerships? • Local authorities work with private companies • The agreement works by local authorities continue to own the buildings and lease them out to private companies who maintain them for an agreed number of years and after that time the private companies hand them back to the council.

  5. EXAMPLE OF PPP • All Glasgow secondary schools have been either refurbished or rebuilt with PPP money. • St Andrew’s Secondary is an example of a PPP.

  6. BRAINSTORMING Construct a mindmap, which lists the advantages of being in a PPP school

  7. Arguments FOR PPPs • Many schools would not have been rebuilt or refurbished – local councils argued that money would not have been available otherwise. • PPP is a fast, effective – and in the short term at least – cheap way of getting new facilities built.

  8. Arguments FOR PPPs • By getting money from the private companies for these essential projects – it saves the public suffering – eg council tax does not have to be raised to pay for them

  9. Arguments AGAINST PPPs • Critics argue that taxpayers will end up footing the bill for PPP. The ‘rent ‘ money to be paid back to the companies will have to be found. • In some cases the initial cost of the project has been paid back within the first few years leaving more than 20 years of profit for the company that owns the building.

  10. Arguments AGAINST PPPs • Private companies have been accused of cutting corners in order to maximise profits. Some schools have been built using cheap materials and cannot withstand the treatment they get on a daily basis.

  11. Arguments AGAINST PPPs • Many jobs have been ‘privatised’. In PPP schools, janitors are usually employed by the PPP company. Wages are often lower than when they were employed by local councils. • Some argue that it is the responsibility of the local council to provide schools. They should budget the money they receive from the government and council tax better.

  12. Activity Describe, in detail, the arguments for and against PPP (8)

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