The Scottish construction industry is outperforming its English counterpart, according to an industry head.

Balfour Beatty chief executive Mike Peasland believes the industry is performing better in Scotland than most English regions.

He told the Herald: "If you look across the country London is a bit of a micro-climate fuelled by some of the major industrial projects like Crossrail. The regions of England are really desperate and there is not a lot happening in terms of commercial work outside of London.

"The changeover from development agencies to local enterprise partnerships has been a long time coming. The grants have stopped while Scotland has been able to keep going.

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"The model is different in Scotland and also the tap has not been turned off as you have things like the Forth Crossing. We are now pricing the last piece of the M8 between Baillieston and Newhouse and linkages to the M74 and M73. All in all, Scotland is doing pretty well."

Mr Peasland was speaking as the Land Securities Buchanan Quarter development is due to be completed in August next year.

Balfour Beatty has about 150 people on-site.

"At the beginning of next year we will start to bring forward the residential. The retail seems to have gone well as Buchanan Street is the prime shopping street in Glasgow," he said.

But he believes the commercial development market is still struggling.

"What Land Securities is doing in Glasgow is the exception rather than the rule.

"Commercial development will struggle for a while yet. There is money out there but people cannot see what the market is doing and are loathe to spend it," he said.

"It is a proven fact that investment in infrastructure will fuel and drive the economy. The more you can do in infrastructure then the more you will improve the economy. I think the Scottish Government recognises that."

(IT)