Committee
Public Audit Committee 27 October 2010
27 Oct 2010 · S3 · Public Audit Committee
Item of business
Section 23 Reports
"The Gathering 2009"
The letter from the permanent secretary Sir Peter Housden states that Councillor Cardownie was involved in the meeting on 12 October to try to find a solution. He was one of the masterminds behind the plan to save the gathering, which he was keen to do from an Edinburgh point of view.So the press release went out on 15 October, and then you resigned and you disavowed the press release. You then went to the dinner on the Friday, and Councillor Buchanan said that Councillor Cardownie was out to get you or was looking out for you. What was the phrase that you used?
In the same item of business
The Convener
Lab
Agenda item 2 is the section 23 report, “The Gathering 2009”. I remind members that the liquidation procedures are still on-going and that the points that we...
Norman Springford (Former Chair, Destination Edinburgh Marketing Alliance Ltd)
No, there is nothing yet. I await questions with interest.
The Convener
Lab
Concern has been expressed about the way in which the matter has developed. I do not know whether you have followed any of the evidence that has been given t...
Norman Springford
It is a two-part answer. First, about a day before the press release, I received a call from Dave Anderson, the director of economic development at the City ...
The Convener
Lab
So you became aware of what was emerging only the day before the press release came out.
Norman Springford
As far as I am aware, it happened reasonably quickly. The approach was possibly made at a late date. As I say, I received a telephone call. I cannot recollec...
The Convener
Lab
And at that point there were no discussions about the council or DEMA taking responsibility for the creditors.
Norman Springford
None at all. The only condition or caveat that was put upon it was that DEMA may need to be aware of the obligations for the running of the future event and ...
The Convener
Lab
And, to the best of your recollection, Mr Anderson similarly was of a view that there would be no responsibility for the creditors.
Norman Springford
Nothing came up in the conversation, which would indicate to me that Dave Anderson was not aware of it. Otherwise, he would have mentioned it.
The Convener
Lab
When the press release was issued the following day, what was your reaction when you saw the terms?
Norman Springford
I have had the opportunity to look at the notes that I made at the time of the press release. A copy of the press release was sent to me by e-mail at about 2...
The Convener
Lab
So, subsequently, when the City of Edinburgh Council decided not to proceed, it was a further surprise to you that the council seemed to have agreed but had ...
Norman Springford
My view was quite clear. DEMA Ltd has a separate legal persona and we had a fiduciary duty to act in the best interests of the company. My immediate reaction...
The Convener
Lab
You attempted to speak to other members of DEMA to ascertain their views.
Norman Springford
Yes. I did a ring round and spoke to every director bar one, who was on holiday, and the chief executive of DEMA, Kenneth Wardrop, who was on holiday in Moro...
The Convener
Lab
You are quite clear that at no point had there been any discussion of DEMA taking on any of the responsibility for the creditors of the company.
Norman Springford
Not with me, if I can put it that way. I had no knowledge of that. My position was immediately stated and became a subject of perhaps some annoyance or embar...
The Convener
Lab
Who were the officials who supported you in your work at DEMA?
Norman Springford
You will appreciate that DEMA was a public-private sector corporation—quite a laudable one, I might add—and the City of Edinburgh Council had decided to put ...
The Convener
Lab
He was on holiday in Morocco.
Norman Springford
He was in Morocco at the time and was, therefore, I presume, not consulted on the content of the press release.
The Convener
Lab
I presume that, had he been consulted on something so significant as taking on substantial liabilities, he would have spoken to you. As well as Mr Wardrop, w...
Norman Springford
Not at that particular time. We are talking about the immediate time up to the issuing of the press release, and the only people who were likely to have been...
The Convener
Lab
Was Councillor Buchanan one of the people to whom you spoke?
Norman Springford
I did not need to, since Mr Anderson reports to Mr Buchanan. It seemed logical that the approach was made through Councillor Tom Buchanan, from the Scottish ...
The Convener
Lab
So a public statement was made about a substantial commitment, but neither the chair of DEMA nor the senior officers who support the board members were aware...
Norman Springford
I was faced with the difficulty that DEMA was a public-private corporation. It was a separate legal entity, and I was the chair, but—without being too rude a...
The Convener
Lab
If Edinburgh wanted to take on the responsibility, that was a matter for the City of Edinburgh Council, but you were clear that, as chairman of DEMA, there w...
Norman Springford
We could not do so; there were insufficient funds. We would have been happy to make the payments or whatever, but we were in a position in which assurances o...