Tram lawyers pay up to settle Scotland's biggest ever compensation claim
Plus: Tributes to Scott Hastings; anger and heartbreak for Hearts; and extra security for MSP after election backlash
Tram lawyers reach settlement with city council in claim over flawed legal advice
The lawyers on the troubled construction project for the airport to city centre tram line have paid up to settle the biggest compensation claim in Scottish history.
The city council had claimed a record £222million in damages from global legal giant DLA Piper, alleging the firm failed to give sufficient warning of the risks in the construction contract, as The Inquirer revealed last November.
The open-ended nature of the contract is seen as one of the main reasons the cost of the project ballooned from £545m to £852m, with work taking six years longer than expected, and some shops going out of business due to the extended disruption.
The council and DLA Piper have now reached an out-of-court settlement. The terms of the deal prevent details of the settlement being made public, but lawyers believe the compensation paid is likely to be measured in tens of millions of pounds and less than half the initial total claimed.
Blame game: The public inquiry into the debacle criticised DLA Piper; the city council; TIE, the arms-length organisation set up by the local authority to deliver the tram project; and the Scottish Government. Inquiry chair Lord Hardie said the law firm had prioritised the interests of TIE over those of the city council, despite the council being its client for the project.
‘Incompetence’ and lessons learned: A report going before councillors on Thursday describes the failures in the council’s oversight of the project as “organisational incompetence”. The local authority can point to the successful completion of the extension of the line to Newhaven, on time and on budget, and year-on-year growth in passenger numbers as evidence of lessons learned.
Council leader Jane Meagher, who repeated apologies for the local authority’s own failures during the construction project, said: “One thing we won’t apologise for, however, is building a tram system, or our ambition to develop it further. Edinburgh is Scotland’s capital and economic powerhouse – the fastest growing city in the country, and recently overtaking London on GDP per head.”
What happens next? The council continues to pursue plans for a second tram line, from Granton to Little France, at a cost of up to £2 billion, against resistance from the Scottish Government. The SNP’s victory in the Scottish Parliament elections, suggesting no change in national transport policy, has done nothing to raise hopes of imminent progress.
YOUR EDINBURGH BRIEFING
SCOTT HASTINGS: Tributes have been paid to “force of energy and positivity” Scott Hastings after the Scottish rugby legend’s death at the age of 61. Part of the last Scotland team to win the Grand Slam in 1990, Hastings was diagnosed with non-Hodgkin’s lymphona four years ago. He died yesterday at the Western General on his late wife Jenny’s birthday. After retiring from rugby, the former Watsonians star became a successful broadcaster, mental health campaigner and MND fund-raiser among many other things. He was a well-known and much-loved figure in the Capital.
HEARTS HEARTBREAK AND ANGER: Where do we start after the events of the weekend? Hearts’ players were two minutes plus added time from sporting immortality and a first league title in 66 years. Then came a late comeback and a pitch invasion which saw them taunted by Celtic fans and reportedly physically assaulted. Hearts have issued a furious statement condemning the disgraceful scenes.
Onwards and upwards: It won’t feel like much consolation yet, but Hearts can now look forward to competing in Champions League qualifiers next season. They will expect to challenge for the title again under the direction of ‘the Great Disruptor’ Tony Bloom, who has revolutionised the betting industry and turned Brighton FC into a force in the English Premier League. Meanwhile, city rivals Hibs also secured European football in the UEFA Conference League qualifiers.
EXTRA SECURITY FOR MSP: Security staff escorted newly-elected Edinburgh and Lothians East MSP Q Manivannan through the Scottish Parliament for the swearing in ceremony last Thursday amid fears for their safety. The Greens MSP has faced a significant backlash since being elected, including vile personal abuse online due to their status as a “trans Tamil immigrant”. The safety measures were in place for the single day due to the high number of visitors at the parliament for the swearing in.
Visa clearance: The Scottish Conservatives also questioned Q Manivannan’s right to stand for election while on a student visa to complete a PhD at Edinburgh University and called for a Home Office investigation. However, Manivannan followed both the letter and spirit of the law, after the Scottish Parliament voted to change election rules in 2024, allowing those on student visas to stand for election. They will need to renew their visa after three years in order to complete their term in office.
LOVE THOSE BOOKS: The Book Lovers Bookshop beside the Meadows has been named the best independent bookshop in Scotland at the British Book Awards. You can read more about the story of the UK’s first bricks-and-mortar romance bookshop in Sarah McArthur’s long read Where there’s smut there’s brass.
PARK LIFE: Two city parks are set to gain extra protections by being declared Local Nature Reserves. Little France Park is home to significant numbers of skylark, buzzards, kestrels and yellowhammers, while Wester Craiglockhart Hill has bats, badgers and nationally important plant species, such as welted thistle and common rock rose.
LAST MAN STANDING: The demolition of a tower block in Muirhouse has been held up for two-and-a-half years because one tenant refuses to leave. The man who has called Inchmickery Court home for many years is resisting eviction proceedings brought by the council.
COMMUNITY APPEAL: A community project which serves free hot meals and offers free wellbeing events and activities in Wester Hailes has launched an appeal to save it from closure. The Community Wellbeing Collective needs to riase more than £15,000 by July 30 to keep its doors open
OVERSEAS BUYERS: The BBC has reported on the high number of overseas buyers investing in property in the Quartermile development on the old Royal Infirmary site. Long-time Inquirer readers may recall our report on the trend two years ago.
CASTLE PATHS: A series of paths leading up to Edinburgh Castle have reopened to the public after eight years, but other routes will be closed permanently due to concerns about the risk of rock falls. The reopened routes include one from the castle car park to the Mound and two leading from the Mound to the bridge over the railway tracks near the Ross Bandstand. (Read more here on the access battle being fought in Holyrood Park: The fight to stop the Radical Road being closed forever)
NO GO: The city council will not pursue enforcement action against developers who failed to include promised public toilets in a new building next to Haymarket Station. Council officials said the move had been ruled out after taking advice from a KC. There are no public toilets in the area, with the nearest being in West Princes Street Gardens, and facilities in Haymarket Station being available only to ticket holders.
Pic of the week
THE BUSINESS
Business Rates Rise Drives Airport Parking Increase
A whopping 142% increase in business rates – almost three times the increase imposed on any other major Scottish airport – has been blamed for big increases in pick-up and drop-off charges at Edinburgh Airport.
The increase equates to an extra £8 million a year, and the airport says it is already the biggest rate payer in Lothian. Indeed, the airport maintains it will now pay more in business rates than the next three largest ratepayers in the region combined.
For contrast, Glasgow Airport is facing a 51% increase, and Prestwick less than 40%.
Prices are being raised for pick-up and drop-off by £2.50 to £8.50 to help cover the increase in costs. In addition, as of today the airport will also remove the 50% reduction for electric vehicles.
Gordon Dewar, Chief Executive of Edinburgh Airport, said the rates increase was “wholly disproportionate” and added: “A 142% increase reduces our ability to invest, grow and compete. In practical terms, it equates to funding around 200 jobs, two aircraft stands, or five new security lanes. It is not a cost that can be absorbed; it must be covered, and trade-offs like this are unfortunately unavoidable…
“We had not planned to raise fees this year, but the absence of a transitional relief scheme – equivalent to that available in England and Wales – leaves us with no alternative.”
LEGAL MOVES: Law firm Addleshaw Goddard has moved to new and larger offices in the centre of Edinburgh. The firm, which has presence throughout the UK and overseas, has just moved into “statement” 30,000 sq ft offices at 24 St Andrew Square, a 60% increase in space, complete with a roof terrace overlooking the square. Alan Shanks, Head of Scotland, said: “ Edinburgh is one of the UK’s most important commercial and professional services centres and moving into a new office in the heart of the city reflects both the strength of our practice here and our long-term commitment to the Scottish market.”
WHISKY DRAMA: A whisky investment company has been rescued from liquidation – meaning cask investors who were involved with the company are to be reunited with their investments. City-based Whisky Merchants Trading was placed into liquidation by administrators Griffins, with some £80 million raised from investors, leaving thousands of customers around the world doubtful of their assets. However, the assets have been sold to Edinburgh Cask Management (Resolution) Ltd, Daily Business reports, which is working to reunite investors with their casks.
THAT’S ENTERTAINMENT
ON THE RUN: It should perhaps be called the East Lothian Marathon, given threequarters of its route skirts the coast outside the Capital. Either way, the Edinburgh Marathon returns on Sunday. Good luck to everyone taking part.
OUTDOOR CINEMA: One of the UK’s biggest free outdoor cinema events will return to St Andrew Square Garden on June 12-14. Square Cinema has announced a programme featuring Dirty Dancing, The Adventures of Tintin, Wicked: For Good, Back to the Future, Labyrinth and much more. Entry to screenings is free and available on a first-come, first-served basis.
GOTHIC BYGONE: The story of one of Scotland’s great Gothic buildings, which was demolished to make way for the building of Waverley Station, is brought to life in a new exhibition at the Museum of Edinburgh. Reviving the Trinity Stones celebrates the 15th century Trinity Collegiate Church. The exhibition runs until 28 June and entry is free.
QUICK BITES
NEW BIRD: A new restaurant and bar, Whirlybird, will open in Victoria Street in the heart the Old Town this week, offering coffee and pastries each morning through to a menu created by head chef Lucia Gregusova, formerly of Hawksmoor.
GARDEN VIEWS: A newly refreshed al fresco Garden View Deck & Bar has been launched at The Royal Botanic Garden in association with champagne house Maison Pommery & Associés. It is located within the John Hope Gateway, and will for the first time extend its opening hours across the summer from 12PM to 8PM on Fridays and Saturdays, and from 12PM to 4:30PM on Sundays.