Alex Salmond backs down over Gathering storm

Published on Thursday 30 September 2010 17:47

ALEX Salmond is to face a grilling by a Holyrood committee over why public money was used to "bail out" the showpiece clan gathering event during Scotland's Year of Homecoming.

The First Minister last week refused the public audit committee's request that he appear as part of an inquiry over the use of taxpayers' money to support last year's gathering of the clans in Edinburgh.

Committee convener Hugh Henry later said he could use his powers to force witnesses to attend.

Yesterday, however, Mr Salmond said he would be "delighted" to appear in front of the committee, which is set to question him about his role in propping up the Gathering event, which ran up losses of about 516,000 and debts of 675,500.

The about-turn came as new documents revealed that the First Minister was more closely involved in trying to rescue the event than he had previously admitted.

Correspondence uncovered by a freedom of information request showed that Mr Salmond made a pledge to Edinburgh City Council to work "hand-in-hand" on setting up a second Gathering event.

This was followed by an offer of at least 380,000 of taxpayers' money if the clan reunion event was repeated.

The First Minister is now likely to face questions about a controversial 180,000 loan from the Scottish Government to the Gathering 2009 Ltd, which it is alleged Mr Salmond's office had offered to the firm.

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Mr Salmond had initially refused to appear before the committee on the grounds that the loan had been approved by former culture minister Michael Russell, who he said was the appropriate government member to answer questions.

However, Mr Salmond told MSPs at First Minister's Questions yesterday that he would be ready to give evidence on subsequent efforts to continue with future Gathering events after Mr Russell is questioned about the loan.

The Scotsman has learned that Mr Salmond is likely to appear before the public audit committee late this month or early November.

But the First Minister could now be on a collision course with Labour MSP Mr Henry over Mr Salmond's insistence on appearing only after Mr Russell has given evidence and by trying to "dictate" what questions members can ask.

The committee will meet next Wednesday, when it will decide how to respond to a letter from Mr Salmond in which the First Minister said he wanted to explain why it was "well worth the effort" to try to hold future Gathering events.

Mr Henry said: "I'm in the process of replying to the First Minister's letter. He should continue to assume that he will be invited unless he hears otherwise, and it is a matter for the committee as to the order of appearances."

A source close to the committee said: "There's now a clash between the First Minister and the committee convener."It's a battle of wills and a stand-off between both sides, as Mr Salmond is saying he will only appear after Michael Russell."

Mr Salmond was caught up in the row surrounding the Gathering after Lord Sempill, a director of the firm, previously told MSPs that the directors were contacted by the First Minister's office with the offer of an interest-free loan.

Opposition parties suggested Mr Salmond had "something to hide" over the affair, which saw the Gathering 2009 Ltd collapse, leaving creditors out of pocket.

Scottish Lib Dem leader Tavish Scott pressed Mr Salmond to hold talks with those left out of pocket by the event, which he said was a "financial disaster".

Mr Scott said: "He lost hundreds of thousands of pounds of taxpayers' money on the Gathering. More than 100 private businesses are in court trying to get their money back.

"I'm pleased he's now finally prepared to meet parliament's audit committee, but he's still refusing to meet the small businesses who have lost money and answer to them."

Mr Scott, who raised the issue of the Gathering at First Minister's Questions yesterday, criticised Mr Salmond for trying to promote a repeat of the event.

He said: "When he appears in front of the audit committee to explain the first mess, he can explain why on earth he thinks it's a good idea to support a second."

Mr Salmond said support for a future event was only on the cards after an agreement was mistakenly announced by Edinburgh Council whereby it would take over the private sector liabilities of the Gathering and the Scottish Government would "roll up" the public sector liabilities.

Mr Salmond said this would "enable every single one of the creditors that Tavish Scott speaks about to be paid".

He went on to claim that the move would have generated 8 million for the local economy and 10m for the national economy.

But the First Minister said that Lib Dem Edinburgh Council leader Jenny Dawe later decided against the deal, which Mr Salmond described as a matter of "great regret".

Labour tourism spokesman Lewis Macdonald accused Mr Salmond of being "closely involved" in the decisions surrounding the losses run up during the Gathering. Mr Macdonald said: "It is outrageous that Alex Salmond is attempting to dictate to the committee.

"This is evidence that Alex Salmond has been very closely involved in financial decision-making relating to the Gathering and it is astonishing that even more public money might have been made available to future events that wouldn't be likely to recoup costs."