Hogmanay cash clawback will be ‘transparent'
All of the city's outdoor Hogmanay events on 30 and 31 December last year were cancelled due to severe weather, with attendees securing refunds from organiser Unique Events.
Council officers presented a report to councillors on the 2024/25 winter festivals on Thursday, which showed that the winter festivals were largely successful.
However, it also said that the city was still working to secure almost £220,000 in expected income from Unique Events, and £208,000 in grant money used for the event.
Officers said an open-book audit will be conducted into the Hogmanay celebrations, in order to 'ensure no enrichment has occurred' as a result of the cancellation.
SNP councillor Lesley McInnes asked officers: 'Is there a clear indication about when those items of outstanding repayment to the council will be settled?'
Adam Henry, a council officer covering festivals and events, said: 'We're working with the contractors at the moment, and agreeing a payment plan for those.
'We've had the most recent submission of their accounts, and the figure stated [in the report] has been revised and increased. We're currently expecting a figure in excess of £208,000.
'That process is ongoing, but we expect it to be concluded shortly.'
Mr Henry also said that the organisers were working with their insurance adjusters, and that they expected payment to be made shortly.
Gareth Barwell, the city's Executive Director of Place, added: 'We are aware this is a very high public interest matter. Just to give an undertaking for the record that there will be a public domain report on this when we conclude it.
'There are some legal issues we're dealing with which means we can't discuss it in a public forum right now.
'But I do want to reassure members of the public that there will be a report that comes back that sets out a settlement sum and a justification behind it, so everyone can understand how those final figures have been arrived at.'
The city expected to make a total profit from the Hogmanay celebrations of just under £669,000, just under two-thirds of which has been paid by the event organisers.
In 2024, Unique Assembly, a partnership of Unique Events and Assembly Festivals, was given a three year contract to run the city's winter festivals, with two year-long extensions possible.
The 2024/2025 Hogmanay was carried out by Unique Events on its own, while future Hogmanay celebrations will be carried out by Unique Assembly.
Councillors agreed to note the report, and added a request for officers to ask the organisers for details of air pollution monitoring they said they would carry out.
Additionally, they agreed to an addendum expressing concern over the 'governance, legal compliance and financial enforcement' of the winter festivals contracts and asking for a private briefing from the council's legal team on that subject.
However, the committee had already received a briefing from the legal team by the time the committee meeting was conducted.
Conservative councillor Tim Jones said: 'My initial concerns here were that critical facts regarding the governance, legal compliance and financial enforcement of the contracts had not been fully disclosed and discussed.
'Now we have received a legal briefing which needs time to be considered. If my understanding is correct, we are going to have another report brought back for discussion.'
Labour councillor Margaret Graham, convener of the Culture and Communities Committee, said: 'The findings of this report demonstrate the many benefits Edinburgh's winter festivals deliver to local communities, businesses, and charities, despite the cancellation of last year's outdoor events.
'Our Winter Festivals, which last year attracted a footfall of almost 3m, contribute significantly to the wellbeing of our residents by providing activities for all ages and income brackets to enjoy during the festive season.
'The events bring positive economic benefit for the city and for Scotland as a whole, supporting jobs in the tourism, hospitality and leisure sectors, among others.
'However, it's essential that we continue to be transparent around the enforcement of the contract, and as agreed at Culture and Communities Committee additional briefings on the matter will be delivered to members, alongside an open book audit of Edinburgh's Hogmanay.'
By Joseph Sullivan Local Democracy Reporter
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