Councillors walk out as commerce chief is named head of bus firm

Published on Thursday 18 November 2010 17:17

EDINBURGH's main bus company was embroiled in fresh controversy last night over the appointment of its new chairman.

Concerns over a possible conflict of interest were raised after Ron Hewitt, head of the city's biggest business group, was appointed to the helm of Lothian Buses.

Opposition members stormed out of the City Chambers after failing to block the appointment of Mr Hewitt, chief executive of Edinburgh Chamber of Commerce, as the figurehead of the bus company, which is majority-owned by the local authority.

He will remain head of the city's main business group while chairing the transport firm, which is expected to be merged with the council's tram company Tie. Mr Hewitt will replace David Mackay, the previous chairman of both firms, who stood down earlier this month, branding the tram project "hell on wheels".

However, business leaders in Edinburgh expressed fears that he would be unable to represent their interests fully when he is overseeing plans for the controversial merger.

Alan Rudland, managing director of Arkay Imaging, on Leith Walk, where dozens of businesses have been affected by tramworks, said: "There is definitely potential for a conflict of interests here and the appointment runs the risk that he will lose impartiality over the tram project rather than be able to take a broader view."

Michael Dixon, chairman of the East of Scotland branch of the Federation of Small Businesses, said: "It does not appear to be a move in the best interests of businesses in the city. I'm not sure the chief executive of the chamber should be involved with the merger of the city's main bus company and the tram company."

• Main players in last-ditch talks to get tram project back on line

Labour, Tory and Green councillors were all unhappy at the council administration choosing a new chairman for the bus company rather than its own independent board doing so.

But a crucial vote on the issue turned to farce when it became clear that the Nationalists on the council would also have to back the appointment of a separate chairman, Brian Cox, for Tie and TEL, the proposed operating company for the 600 million network. Mr Cox was unveiled as the SNP/Lib Dem council's recommendation to head up Tie and TEL last week, but Mr Hewitt's name was only officially confirmed yesterday.

The vote was originally to appoint both individuals at once, but after voting began the capital's Lord Provost, George Grubb, called a halt to proceedings in the City Chambers for crisis talks.When the meeting resumed the appointments were split into two votes, but the other three groups walked out in protest at the way the issue had been handled.

The board of Lothian Buses is believed to be divided over Mr Hewitt's appointment amid fears he is "too pro-tram".

Insiders say he was Mr Mackay's preferred choice to be his successor within the bus company, ahead of lawyer Ann Faulds.

One source told The Scotsman: "He's very much David Mackay's man thanks to his support for the tram project, and he had urged the council that Ron Hewitt would be a good appointment. It's obvious why the council wanted to have control over this appointment - it is adamant the merger with Tie has to go ahead."

Tory group leader Jeremy Balfour said: "We felt it should have been left up to the board of Lothian Buses to make this appointment." Labour group leader Andrew Burns said yesterday's meeting was the most "farcical" he had ever attended.

Mr Hewitt was unavailable for comment.