Lawyers and PR firms are paid millions from city's tram saga

Published on Friday 8 July 2011 18:40

LAWYERS and PR firms have continued to pocket millions from the Capital's tram project as it has lurched from crisis to crisis, it has emerged.

Figures obtained by the Evening News show a string of both legal and public relations firms are among the highest paid consultants employed by tram firm TIE over the past three years.

The details emerged as work began on laying tram tracks at Haymarket, the first sign of progress since a new agreement was reached between the city council and its main contractor, Bilfinger Berger.

Information released under Freedom of Information laws showed TIE has spent more than 5 million since 2008 on lawyers and spin doctors. The money includes large sums paid to DLA Piper, the legal firm which helped draw up the original tram contract, and Mandy Haeburn-Little, TIE's now departed PR chief, who earned more than 90,000 in consultancy fees before being handed an in-house six-figure package.

More than 1.3m was spent on consultants during the long-running dispute resolution process with Bilfinger Berger. The decision to go through the lengthy adjudication process is now widely seen as a mistake which cost several million pounds in fees paid to the German contractor.

Figures released by TIE showed five PR firms, including Ms Haeburn-Little's own, had shared in almost 1m in the past three years. The fees included more than 180,000 to Edinburgh-based Burt Greener Communications and more than 260,000 to Weber Shandwick.

TIE also paid more than 380,000 to Media House, a PR agency specialising in "crisis management" set up by former Scottish Sun editor Jack Irvine. 9000 was also paid to Fan Hitter PR.

John Carson, a tram project critic who is standing as an independent candidate in the city centre council by-election, said: "They claim to have all this in-house expertise but keep going outside for advice, it doesn't seem logical."

The figures show that DLA Piper have been paid more than 2.6m since 2008, with a former partner, Andrew Fitchie, getting a 50,000 bonus. Other firms including Brodies, Dickson Minto, Dundas & Wilson, Morton Fraser and Tods Murray all also received payments.

There were also payments totalling almost 1m to recruitment firm Search and a further 50,000 to headhunters Munro Consulting.

Tony Rush, the tough-talking negotiator, picked up 27,000, despite his approach to the dispute with Bilfinger Berger now being regarded as a failure.

Deputy council leader Steve Cardownie said: "On the face of it, these payments look to be totally outrageous. I've always said this project is a Klondyke for consultants and lawyers and that has proved to be the case. It could also be that the propriety of some of these payments merits further investigation."A spokesman for TIE said: "As a major construction project, we have to engage with stakeholders and the public effectively."