Council facing multi-million pound compensation bill for Forth road bridge works

Wednesday 20 February 2013

Transport minister Keith Brown has said he is "puzzled" by claims that Edinburgh taxpayers could be hit with a multi-million pound compensation bill for roadworks leading to the new Forth road bridge.

Edinburgh Council fears it could be liable for between £93,000 and £4.4 million in compensation for noise, disturbance, vibration, smell and fumes from the construction of the M9 spur to the Forth Replacement Crossing (FRC), a leading councillor told MSPs today.

Forth Estuary Transport Authority (Feta) asked the council to build the road and send them the bill, but a council official told MSPs that some liabilities "weren't totally transparent". Government agency Transport Scotland (TS) "wasn't aware" that the local authority had bought the route under compulsory purchase legislation, which could mean the council has to foot the bill, according to council transport policy and planning manager Ewan Kennedy. But Mr Brown said the Scottish Government has already pledged to meet the council`s liabilities. "It puzzles me," he told the Infrastructure and Capital Investment Committee. "We have made very clear that Feta, as has been authorised through Scottish ministers, will be picking up all of the compensation." But Lesley Hinds, Edinburgh Council's transport convener, later told the committee that the council is still seeking "comfort" that Edinburgh taypayers` money will be protected. She said: "There has been some constructive discussion following statements given out to the press, and there has been an understanding at TS of where the council is coming from, so we feel a bit more comfort that that discussion is ongoing. "We haven't budgeted for these liabilities, and therefore we would have to find savings or find it from somewhere else." Mr Kennedy said Feta had "asked Edinburgh Council to act as their agent to design, construct and deliver the M9 link road on the understanding that all costs incurred by the council would be reimbursed from Feta". "The issue that has arisen is around liabilities, and where liabilities sit," he said. "The council proceeded and entered into the contracts, so effectively the liabilities sit with the council, but the particular issue that is outstanding is that the council used compulsory purchase powers to acquire the land. "Obviously the road is now built, the land has been obtained but there are outstanding claims from landowners that could still end up in arbitration." He added: "In constructing the bill the Scottish Government were looking at Feta liabilities but Edinburgh Council liabilities weren't totally transparent. "Since the submission by the council and subsequent conversations with TS, (it has emerged that) TS was unaware of the fact that the council used its powers to acquire. "The council's best estimates of the likely level of compensation is £93,000. "There 180 claims on the table, and the combined sum of those claims which are performed by the former land owners is £4.4 million. "This could end up being resolved through arbitration through a lands tribunal, and we don't have certainty on the outcome of that. "Now, our belief is the £4.4 million is a figure that is not likely to come to pass, but it is certainly possible that a figure higher than £93,000 could come to pass." He confirmed that the M9 spur has now been designated a trunk road and is now the responsibility of Transport Scotland. A Transport Scotland spokesman said: "Recent press speculation that City of Edinburgh Council (CEC) is potentially liable for 'millions of pounds' of compensation for the A800/M9 spur extension project is completely false. "To be clear, it is Feta, fully funded by the Scottish Government, which is liable for any compensation claims received. "Furthermore, only a small proportion of the claims - at a fraction of the cost - are routinely deemed valid. "Feta has already set aside funds to meet these claims and further potential valid claims. "Indeed, CEC, who are well experienced in these matters, have themselves advised that a large proportion do not meet the criteria of a valid claim. "The Forth Road Bridge Bill provides for outstanding liabilities. The council would not be expected to meet any outstanding claims where the liability rests with Feta."

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Council facing multi-million pound compensation bill for Forth road bridge works

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