UK NEWS

SNP: CITY'S CASH WOE NOT OUR FAULT

Saturday April 5,2008

By Paul Gilbride

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A row over a local authority’s multi-million-pound debt crisis escalated yesterday with SNP ministers blaming political rivals.

In a letter to Liberal Democrat leader Nicol Stephen, finance secretary John Swinney said previous Aberdeen City Council administrations had overspent by £50million in just five years, leaving a deficit of £4.4million.

Mr Swinney said the SNP government and the party’s current administration in Aberdeen wasn’t responsible for the financial problems.

The local authority – run by the SNP and Liberal Democrats since May – announced a £27million cut in services earlier this year, affecting sport and leisure services and vulnerable groups.

Hundreds are expected to march through the city today in protest at the cuts.

The Accounts Commission will hold a public hearing into the council’s finances later this year after concerns raised in a review by Audit Scotland.

Mr Stephen, MSP for Aberdeen South, has blamed a poor funding settlement from Holyrood for the current situation. But in his letter Mr Swinney said the authority – run by Labour until 2003 and the Lib Dems and Tories until last year – had a record of poor financial management.

He said that between 2002 and 2007 the administrations had spent nearly £50million more than they had budgeted for, leaving them with a £4.4million deficit by April last year.

In his letter, Mr Swinney said: “It is crystal clear the financial challenge now is a direct result of previous administrations not living within their means.

“I welcome the Accounts Commission’s decision to hold a public hearing.”

Mr Stephen wants to meet Mr Swinney to discuss the cuts, but in his letter the finance secretary said he would do so only after the outcome of the public hearing was known. Mr Stephen said: “This is an inadequate response that fails to understand the seriousness and urgency of the situation.”

Councillor Willie Young, secretary of the city’s Labour group, said: “This is typical of the SNP. When things aren’t going right, blame Westminster. When it’s not Westminster’s fault, it was someone else 10 years ago.”

Meanwhile, the authority was criticised for paying staff to turn up to a defunct ice rink and do nothing.

Workers at the city’s only ice rink are turning up for every shift as planned – despite the rink closing almost a fortnight ago.

Sheila Paterson, chairwoman of Aberdeen Ice Skating Club, said: “It’s a ridiculous situation. They sit around all day doing nothing and we all pay for it.”

A City Council spokesman added: “Twenty people on site, a mix of part-time and full-time staff, are doing duties linked to mothballing of the ice rink, including storage, cleaning, filing, bookkeeping and auditing.”