£1 billion collapse at Ravenscraig?

Oct 8 2008 by Robert Mitchell, Wishaw Press

THE future of the £1 billion development at Ravenscraig was thrown into doubt this week after it was claimed delays in handing over public money could scupper the entire deal.

Over 12,000 jobs and 3500 new homes are planned for the new town centre but one of the men overseeing construction has warned the Scottish Government that it needs to cough up some cash.

Unless £2.8 million of public financing for preparatory work on the £600 million second phase of the development is handed over, private sector developers are worried the whole project could stall.

Motherwell and Wishaw MP Frank Roy is alarmed at how serious the situation is, and is calling on the Scottish Government to act as time is running out.

Mr Roy said: “The SNP have a moral and legal obligation to carry on with the full investment into Ravenscraig, anything less would be a betrayal of the area. If they don’t spend the money and the development collapses, it would be nothing short of scandalous.They need to come clean on this.”

Work is well under way on the £200m first phase, to redevelop the 1100-acre site with a £30m regional sports facility, a £70 million campus for Motherwell College and 850 houses.

However Ravenscraig director Jim Fitzsimons has said the private sector could leave the development as the £2.8 million of public money is needed to unlock the £600 million that the second phase will cost.

The second phase will involve the new town centre and transport links, and Ravenscraig Ltd confirmed to the Wishaw Press that the £2.8 million is needed to do further preparatory site work.

It is planned that the new town centre will consist of around one million square feet of retail, leisure, restaurant and community facilities. Over 500,000 square feet of commercial space and 1500 housing units will also be created.

The area will be served by a new railway station, a bus interchange and will have substantial car parking with dual carriageway access from both the M8 and M74.

Councillor Jim McCabe, Leader of North Lanarkshire Council said: “I am aware of the speculation regarding funding from the Scottish Government for Ravenscraig. I am, also, aware of current global financial considerations, however I would be very disappointed if the development was to be derailed for the sake of £2.8 million.

“North Lanarkshire Council’s position has always been that the regeneration of the Ravenscraig site, and the development of the new town centre, is a project of national importance and one that deserves to be recognised and supported at that level.

“I would urge the Scottish Government to make an announcement regarding its intentions in the very near future in order to allow the development to remain on track. I would suggest it is important for the Scottish Government to bear in mind the scale of the development and what its successful conclusion would mean not only for North Lanarkshire, but Scotland as a whole.”

The Wishaw Press contacted the Scottish Government and Scottish Enterprise for comment yesterday (Tuesday) but received no reply before our deadline.