Fresh calls to privatise Hogmanay over losses

PRESSURE is growing on the council to "privatise" the city's famous Hogmanay party, as it emerged the event posted a loss for the third year in a row.

Provisional estimates from city council officials show that the Winter Festivals – Edinburgh's Hogmanay and Capital Christmas – are facing up to a loss of at least 161,000 this year.

The council has launched a review of Hogmanay, which is looking at areas including whether its financial risk can be reduced by outsourcing all the aspects of the event to a private firm.

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One source said: "It may be better for the whole lot to be taken over by those in the private sector who are better at delivering it."

Currently, Unique Events organises the event alongside two council liaison officers, and with additional support from the council's events unit and a number of council departments.

While the council provides a 1.45 million subsidy to the Winter Festivals, it lost 500,000 last year and 300,000 the year before.

Provisional figures show that the Hogmanay event is facing an overspend of at least 51,000 this year, while Capital Christmas is expected to be 54,000 over budget and "internal management expenditure" is set to go 56,000 over budget.

Councillor Iain Whyte, leader of the Conservative group on the council, said: "It is a concern, especially at a time when the council is struggling for the forthcoming budget to find money for other things, such as care for the elderly and school budgets. Every penny counts right now.

"I would be very keen that we look to find a way of ensuring that there are no potential losses."

The review of the Winter Festivals is currently being carried out by the council, Scottish Enterprise and Event Scotland. It is looking at the long-term future of Hogmanay and the wider Winter Festivals programme.

Councillor Steve Cardownie, the city's festivals and events champion, said: "It is clear we will have an overspend this year, but the council will not be in a position to give final figures until after the end of this financial year.

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"Obviously there are targets, and if we fail to achieve them then it is a cause for reflection.

"However, I regard all monies that we put in as an investment for the economy of the city, and the event helps keep us at the forefront of the international tourism market at that time of the year."