Tourism chief quits over Homecoming finances row

Published on Tuesday 10 November 2009 21:30

EDINBURGH'S new tourism body has been stunned by the departure of its figurehead in protest at the handling of a controversial deal to rescue the flagship event of the Homecoming celebrations.

The Scotsman can reveal that award-winning entrepreneur Norman Springford decided to quit the Destination Edinburgh Marketing Alliance (Dema) after just a few months because a huge financial bail-out of The Gathering was approved behind his back.

Last night, the Scottish Government admitted Dema had not been involved in any of the talks to take over the event and inherit debts which were racked up by its organisers.

The departure of Mr Springford is a huge blow for the fledgling marketing body that was set up in April following years of campaigning from industry leaders in the capital, but is struggling to find cash for crucial projects. It is currently being run by a senior council official, Kenneth Wardrop.

Under the deal announced by the government last month, various public bodies agreed to write off debts to the tune of 300,000 from the organisers of the huge clan gathering in Edinburgh in July. The council also agreed that Dema, for which it provides the majority of funding, would inherit 300,000 worth of private-sector debts and take on all rights to the event in case it can be staged again.

But the bail-out was approved without the backing of Dema's board, which Mr Springford headed. The Scotsman revealed last month that it was unlikely any creditors from the event would see their money.

Councillors have launched an internal probe into how the event, supported with 500,000 of public money, ended up making a 600,000 loss, despite attracting 47,000 people.

Mr Springford, a former accountant and ex-director of Partick Thistle football club, is best known for building up the Apex Hotel Group from scratch from the initial conversion of an old Edinburgh University building in the Grassmarket.

He is a former Scottish Hotelier of the Year and Entrepreneur of the Year. However, he is thought to have been furious at the prospect of Dema being saddled with huge debts for several years.

Mr Springford, who declined to comment yesterday, was thought to be particularly angry at the claim in the initial government announcement that "this deal will ensure creditors are paid as well as securing the future of the event".

Mr Wardrop, project manager for DEMA, said: "After a successful launch period for the Destination Edinburgh Marketing Alliance, chair Norman Springford has indicated his intention to resign from the board at its meeting in December. A new appointment to the role will be made at this time."

One source said: "He was pretty much left with no option but to go. His position was untenable."

A spokeswoman for the Scottish Government said: "This is a matter for Dema. We have had no discussions with Dema at any point."

A spokeswoman for the council said it had nothing to add to Dema's statement on Mr Springford's departure.