Holyrood will be asked for second bailout of debt-ridden clan event

Published on Wednesday 18 November 2009 21:30

THE Scottish Government is set to be asked to provide a further bailout in the wake of the financial failure of this summer's huge clan gathering in Edinburgh.

Senior councillors have revealed the city is unlikely to be able to settle the 300,000 debts run up by the centrepiece event of the Year of Homecoming.

They are expected to ask the government, which has already written off 180,000 of debts from the event.

Senior council sources say there is a danger The Gathering may be forced into administration, as a result of the stalemate over who is responsible for the event, which made a 600,000 loss despite securing 500,000 in public funding in advance, as well as a 180,000 loan from the government.

Lord Jamie Sempill, the creator of the centrepiece event of the Homecoming celebrations, wrote last month that more taxpayers' money would be needed if The Gathering was to be a success in future.

There was more confusion over The Gathering after the city council said it had not agreed a deal for its marketing body to take on responsibility for the event. The council is now in talks with the government.

Figures released yesterday showed the council has ploughed more than 1 million into the Destination Edinburgh Marketing Alliance (Dema), but it has attracted only 100,000 worth of private-sector support in its first year.

The council also said it was still owed some 34,000, about 10,000 more than previously thought, in the wake of the event, but insisted it had not given up recovering this sum.

Historic Scotland, the police and ambulance service have all had to write-off debts in the region of 120,000.

Council leader Jenny Dawe is expected to be grilled tomorrow on how 300,000 of debts inherited by Dema will be settled.

Finance secretary John Swinney will also be called to account by MSPs, who have demanded that questions about The Gathering be cleared up.

A spokeswoman for Dema said: "We have been invited to consider the potential of a future event in Edinburgh, subject first to resolution of the financial affairs of The Gathering 2009, with which we are not involved. Dema will then, if appropriate, draw up a business plan jointly with other supporting bodies, which will look at the funding and structural requirements of such an event.

"In the meantime, Dema is concerned solely with the delivery of its current objectives and business plan and is not in a position to comment on The Gathering 2009."

In a written response to questions about The Gathering for today's full council meeting, Ms Dawe refused to spell out the extent of discussions between the council, Dema and the Scottish Government over how to take the event forward. She said: "The council acted as a broker for the Scottish Government and Dema discussions. Discussions regarding the outstanding debts incurred by The Gathering are ongoing."

Paul Godzik, Labour culture spokesman at the council, said: "We are basically seeing a wall of silence over this whole business. How on earth could the council broker talks between the government and Dema when Dema's board knew nothing about this?"