This week's news that West Lothian College is unable to pay its PPP contract payments again raises questions about whether this whole system of financing public sector projects is sustainable. One of the major problems seems to be the inflexibility of the College contract, whereas students and courses change over time. It also seems clear that most of the risk has stayed with the public sector despite claims to the contrary. 

This problem in West Lothian obviously increases concern about Glasgow's own PPP contract for its secondary schools. Will changes in pupils' requirements and courses in the coming years create a similar strain for Glasgow City Council? If cuts have to be made to fund the Equal Pay Settlement, will the PPP contract payments prove a millstone round the Council's neck?

One of Glasgow's secondary schools, Bannerman High in Baillieston, was refurbished only a few years ago under the PPP contract. However, the HMIE report published in May this year considered that "the overall quality of accommodation was adequate." This is an extremely disappointing description for a building soon after the start of a 30 year life. If it is only adequate now, what will it be like by the end of its life?

John Mason of the SNP commented, "West Lothian College's difficulties have high-lighted the inherent weaknesses of the PPP/PFI scheme. We are clearly receiving a second rate product for far too high a price. I fear that a lot of chickens have still to come to roost under the Glasgow schools contract."