V & A Budget Issues Emerged Last April

It's emerged the Scottish Government were informed of V & A budget issues by Dundee City Council last April

Published 6th Feb 2015

The Scottish Government was informed about the spiralling cost of Dundee's V&A museum nine months before it was revealed to the public, the Culture Secretary has revealed.

Dundee City Council told the Government that the initial ÂŁ49 million estimate would not be met in April 2014, Fiona Hyslop said in a written parliamentary answer.

The new contract price of just over ÂŁ80 million was revealed to the Scottish Government on December 18 but it was not made public for another month, she said.

Mid-Scotland and Fife Labour MSP Claire Baker asked the Scottish Government when it was made aware of the delay and rise in cost for the Dundee V&A project.

Our reporter Alan Smith has been talking to Ms Baker:

Ms Hyslop responded: "Dundee City Council kept the Scottish Government informed, within the bounds of commercial confidentiality, of the contract negotiations.

"As part of this, in April 2014, the council informed the Scottish Government that the initial estimate of the price would not be met and that there was a potential impact on the site mobilisation planned for August 2014.

"The contract price of ÂŁ80.11 million published by Dundee City Council on 16 January 2015 was shared with the Scottish Government on 18 December 2014.''

She added: "The Scottish Government has had regular discussions with the V&A Dundee partners since the ambitions for the project were first set out by the partners in June 2008. Ministers most recently met the council on 18 December 2014.''

Ms Hyslop rejected Mrs Baker's calls for an inquiry into the rising costs at Holyrood last month, insisting it would cause unnecessary ''uncertainty''.

She said the new significantly over budget ''fixed price'' deal should give people confidence that it will be delivered successfully.