Companies owed £300,000 from clan gathering 'won't get a penny'

Published on Wednesday 21 October 2009 21:56

CREDITORS owed thousands of pounds in the wake of the huge losses run up by organisers of Homecoming's clan gathering are unlikely to see any of their money, The Scotsman has learned.

The marketing body set to inherit 300,000 of debts to companies involved in the centrepiece of the Scottish Government's Year of Homecoming in Edinburgh will almost certainly be unable to pay them.

Board members of the Destination Edinburgh Marketing Alliance (DEMA) are also said to be opposed to the fledgling body meeting any of The Gathering's debts – despite the Scottish Government announcing a "deal" to ensure creditors will be paid.

Doubts over the rescue package unveiled last week have emerged amid growing concern about DEMA's ability to take on the debts of The Gathering Limited, the company set up by entrepreneur Lord Jamie Sempill, to stage the two-day event in Holyrood Park.

Various public bodies – including the government, Historic Scotland, Lothian and Borders Police and the Scottish Ambulance Service – have already agreed to write off 300,000 of debts due to them from the company.

But last week's announcement made it clear that DEMA would "take on" The Gathering's remaining private-sector obligations. It added: "This deal will ensure creditors are paid as well as secure the future of the event."

However, The Scotsman can reveal no such agreement has been reached, and DEMA admitted last night there was still "confusion" over its role and who would be taking responsibility for the remaining debts.

It is not known how many firms have lost out as a result of The Gathering, but they are thought to include catering companies, suppliers, site contractors and performers.

Norman Springford, chair of DEMA, said: "We are still involved in negotiations with the council and the Scottish Government over The Gathering as to what will happen to the company that ran the event.

"We have not taken it over and have not agreed to do anything as yet. That is all still under discussion. We simply don't have the wherewithal to meet private-sector debts. We are a marketing body and were not set up for that purpose. If any debts still have to be cleared, that is not a matter for DEMA."

However, a government spokeswoman said: "DEMA will take on The Gathering 2009 Ltd's remaining private-sector obligations and, with the council and other public-sector organisations, will develop the assets and intellectual property rights to organise future events."

Lothian and Borders Police yesterday said it had not been asked to carry out any fraud investigations over The Gathering and had not had any formal complaints about the event.

One caterer, who is owed about 5,000, but asked not to be named, said: "We've been trying to find out for several weeks what's happening, but haven't had any luck at all.

"We had a successful event and it all seemed to go very well, but it's very worrying that we've not had the money we've been due."

Royal Mile Whiskies, which is understood to be one of the main creditors, declined to comment last night, while Lord Sempill could not be contacted.

The clan gathering was envisaged as a flagship event for the Year of Homecoming and saw a two-day Highland Games event staged at Holyrood Park and a huge pageant played out at Edinburgh Castle Esplanade.

Marketing skill raised nearly half a million in public money for his brainchild

JAMES William Stuart Whitemore Sempill, the 21st Baron Sempill – or Jamie as he prefers to be known – comes from one of Scotland's oldest families. One of his ancestors, the first Lord Sempill, was killed at Flodden, and another fought at Culloden.

He spent much of his early life in marketing, mainly promoting and developing beer and tobacco brands in South Africa and Russia.

Lord Sempill sat in the House of Lords for five years in the 1990s before hereditary peers were scrapped.

He stood for the Tories in Edinburgh North and Leith in the 1999 Scottish Parliament elections and was due to be the candidate in Paisley South in 2003, but stood down to take a job in the United States.

He dropped his ambitions to enter Holyrood in March 2007 when he first unveiled plans to stage The Gathering.

It was envisaged in the early days of the plans to stage a Year of Homecoming, and Lord Sempill travelled the world to promote the event.

He secured 490,500 in public grants, including 180,000 from official Homecoming funds, 100,000 from the government and 100,000 from the city council.