Alex Salmond: More people should have been told of Gathering loan

Published on 01/12/2010 23:28

The First Minister and his former culture secretary have conceded that a loan given to bail out a troubled tourism venture should have been publicised more widely.

• Under the spotlight: Alex Salmond

Alex Salmond and SNP colleague Michael Russell accepted that more people should have been made aware that 180,000 had been loaned to The Gathering Ltd - the firm set up by chief executive Lord Jamie Sempill to run the centrepiece Highland clan event as part of the Homecoming celebrations last year.

The event, in Holyrood Park, Edinburgh, run up debts of about 516,000 and the loan was written off. More than 100 creditors were left out of pocket.

The loan sparked anger among opposition parties, who accused the Scottish Government of secrecy and misusing public money.

The two ministers rejected accusations that the loan had been kept "secret", despite only one agency on a specially convened steering group being made aware of it.

EventScotland, a national organisation set up to promote Scotland, should have been "instructed" to share the information with partners, Holyrood's public audit committee was told yesterday.

Mr Salmond and Mr Russell appeared before the committee, which is following up an auditors' report on the use of taxpayers' cash. The committee has already heard from a steering group member who said he felt "let down" by not having all the information to hand.

Mr Salmond said: "We should have insisted on EventScotland informing the rest of the steering group about the loan. I think that's a perfectly fair point to make."

He added: "I would be surprised if other members of the steering group hadn't thought it a good idea, because they would be as anxious as we were to secure the future of the event.

"But, nonetheless, I think it would have been proper for us to instruct EventScotland to inform the rest of the steering group."

And the First Minister stressed: "We didn't instruct EventScotland not to inform the steering group, incidentally."

Mr Russell, who is now education secretary, agreed with Mr Salmond, and said: "I think that EventScotland should have informed the steering group, with our assistance, but there was no secrecy."

During the session, Mr Russell clashed with opposition members on the committee, forcing convener Hugh Henry to try to restore order.

Liberal Democrat committee member Nicol Stephen said: "Mr Russell, you seem not to like the language, but is it not a simple fact that the loan was kept secret from the partners in the event - they did not know about this loan?"

Mr Russell replied: "I don't want to split hairs with you.

I accept the First Minister's view that it was better if EventScotland told the other members of the steering group."

He added: "At no time was I, or any of my officials, involved in an act of secrecy."

Mr Henry also branded the loan a "secret", prompting denials from Mr Russell.

The First Minister had initially refused the committee's request he appear as part of its inquiry, but later agreed to give evidence.

The investigation has already led to clashes with high-profile witnesses, including former permanent secretary Sir John Elvidge.

He was in charge of the civil service when the event was staged - and dismissed the investigation as "all tip and no iceberg".

His evidence was called into question following appearances by Edinburgh council leaders last month.

The Gathering was promoted as the centrepiece of the year-long Homecoming programme, which was timed to mark the 250th anniversary of the birth of Robert Burns.