City in hot water over £10k US trips to greet yacht race

Under the plans, a senior council officer would lead a delegation to both San Francisco next month and New York in June when the Edinburgh Inspiring Capital Clipper yacht visits.

Officials, who say they are seeking sponsorship to cover some of the cost, insist the move would boost tourism and business links.

But opposition councillors are furious that the trips are being proposed at a time when 1 million in funding to community groups and charities is being cut.

It comes just days after it emerged that the council booked up to a dozen staff into the five-star Old Course Hotel in St Andrews at a cost of about 2,000 ahead of a local authority awards ceremony.

The council has to find more than 90m of savings in the next three years as it faces the biggest financial crisis in its history.

Councillor Andrew Burns, leader of the Labour group on the city council, said: "I don't think it is an appropriate time to be spending over 10,000 sending a delegation to America.

"The council is facing severe financial challenges and I am certain that those groups who will be losing grant funding will look at this with dismay."

Council officials say that both visits would include a joint reception held by staff from the council's "investor support" team and members of the Destination Edinburgh Marketing Alliance (Dema) and Scottish Development International (SDI).

Dave Anderson, the council's director of city development, said: "The Clipper reception, and corporate sailing day, will offer an opportunity to cross-sell Edinburgh's visit, invest, study and work agendas.

"Guests will include local industry champions, target companies, higher education donors, GlobalScots, and academic centres of excellence/innovation."

The council's 10,400 estimated costs would cover "flights, accommodation and subsistence costs" in both San Francisco and New York for the delegation. It may also include "representatives from other bodies and from the private sector in the city".

Dema – which is heavily backed by council money – will also send a representative although the costs it will face are not known.

The economic development committee of the council were today set to vote on the issue.

Leith Labour councillor Gordon Munro, also a member of the economic development committee, said members of the Citadel Youth Project – one of the groups set to see its funding slashed – would be "furious" at the proposals.

But Cllr Tom Buchanan, the city's economic development leader, said that the proposed visit could still be cancelled if the council cannot find a sponsor. He said: "We are conscious about budgets and the need to justify overseas travel in the current climate.

"If we cannot achieve any sponsorship or there is not sufficient diary space, a judgement will have to be taken to not go."