Timeshare owners dismiss Macdonald threat to cut power

Published on Wednesday 16 July 2008 21:18

DEFIANT timeshare owners last night condemned a move by Scotland's biggest privately owned hotel chain to cut off their electricity and water supplies as "a totally empty threat".

In a further escalation of the row over the timeshare homes, the committee of the Loch Rannoch Highland Club firmly rejected the threat to their properties made by Macdonald Hotels.

Last week, the hotel sent a letter to homeowners saying that if a 451,000 payment for five years' worth or water and electricity supplies was not paid, it would take "immediate steps" to shut off supply.

But Allan Kenneth, 78, the junior vice-chairman of the committee – which oversees the management of 85 lodges near to the hotel – dismissed the claims.

He said: "This is a totally empty threat."

Kenneth said the lodges are serviced by two electricity substations that are "under club lock and key".

He argued that as the committee and the hotel group were due to hash out their differences in the Court of Session in Edinburgh at the end of October, the supply company would probably not want to become involved in the row.

Kenneth said: "I have been telling some members to totally ignore these threats from Macdonalds."

Gordon Fraser, deputy chief executive of Macdonald Hotels & Resorts, said the hotels group regretted having to issue an ultimatum, but felt it had no choice.

"This is very much a last resort for us. The letter was written with deep regret. It is not against the owners, it is against the committee."

This latest dispute is over a 451,352 bill for utilities due to Macdonald since the committee took control of the timeshare club from the hotel group five years ago.

The committee maintains it paid the bill – minus about 250,000 it says the hotel owes it for outstanding management fees.

Macdonald rejected the committee's payment as "wholly unacceptable".

Although Macdonald does not dispute that it has not paid fees owing on the timeshare weeks they own, the company rejects the deduction to the utilities payment.

Both sides have employed QCs and the case is scheduled to be heard in the court in Edinburgh in October.

The hotel and the club committee have been involved in a bitter series of claim and counterclaim and since 2003.