ESPC chief quits after 'carrying can' for group's cash woes

Ron Smith's departure was announced to ESPC members in an e-mail from the group's chairman, Robin Stimpson.

Mr Stimpson wrote: "After eight-and-a-half years in the role of chief executive, Ron Smith has decided that the time is right to leave the company to develop his other interests."

The ESPC has gone through a torrid six months as the property market has slumped, and the group had to axe 50 jobs earlier this year.

Last night an industry insider said Mr Smith was carrying the can for poor performance during the property market's boom years.

He said: "It's remarkable that it turned in a loss during the heady days of 2006-7. It seems that it has been chronically badly run.

"It seems that it has been run with a lot of fat on it, and we're at a stage in the economic cycle where no business can survive with fat on it. In these circumstances, the head man has to take the fall, he has to take the hit."

The source said that huge amounts of money and time had been invested in online software for ordering surveys, which had proved to be unpopular among property solicitors.

He added that there had been an element of complacency in how the ESPC operated and said it failed to react fully to the burgeoning market in online property searches.

The job losses were announced in February after a fall in the housing market. A similar fall in the group's turnover is expected in its accounts for 2008, but these have yet to be registered with Companies House.

The Edinburgh Conveyancers Forum called for the resignation of the ESPC's management after questions were raised about the body's financial situation.

The forum said ESPC's finances lacked transparency and until this was resolved it would not consider a cash injection.

Responding to the resignation, forum chairman Ross Mackay said: "The Edinburgh Conveyancers Forum welcome this development in light of our previous stated concerns and look forward to hearing from the ESPC as to their plans for dealing with the other issues raised by us with them."

Linda Urquhart, a former ESPC board member, said: "I'm sad. He was good for the company. Does it surprise me? Perhaps not; in these difficult days inevitably somebody looks for a fall guy, somebody to blame."

Ms Urquhart said the group had invested during the boom times for a future that had failed to emerge.

Simon Rettie of estate agents Rettie & Co, said: "I'm not that surprised. It perhaps gives them an opportunity to review what they are offering. I think they have to look at their models and move on."

Mr Smith will remain as chief executive until September.

Mr Stimpson said that the board was now making arrangements to find a replacement.

He also called on member firms to get behind the group: "As the management of the ESPC changes over the next few months, it is important that member firms continue to support us as we make any necessary further changes to ensure the company maintains and where possible improves its support for members in a continuing difficult market."

The chairman of ESPC's Glasgow counterpart revealed last month that talks have taken place on merging the group with the ESPC to create a single Central Belt property centre to help both organisations fight the slump in property sales.