Lord Fraser will report his findings next year

Lord Fraser of Carmyllie, who has been tasked with leading the inquiry, has been explaining how he plans to proceed.

He said he wants to conduct proceedings in public, in front of television cameras and publish documents on the inquiry website.

It is planned to hold the first evidence taking session next month and to sit for three days in the first week and for up to four days a week until Easter.

Those expected to attend at the Scottish Land Court offices in Edinburgh will include officials from the Scottish Executive, the parliament, the builders and the architects.

Lord Fraser is being assisted by John Campbell QC, who will question those called to the stand and the Auditor General Robert Black.

The head of the inquiry has promised to leave no stone unturned in the quest to find out how the cost rose from an initial projection of �40m to the current estimate of �375m.

I cannot walk through Edinburgh, sit on a train or go to any event anywhere in Scotland, public or private, without being asked about the inquiry Lord Fraser

The Tory peer said he hoped to complete his work "as soon as practically possible" - but said he did not want the inquiry to further delay the project or add to its spiralling cost.

"I cannot but recognise the intensity of interest and concern over this issue across Scotland," he said.

"Neither the Scottish Executive nor MSPs should underestimate that.

"Since the first minister announced his invitation to me, I cannot walk through Edinburgh, sit on a train or go to any event anywhere in Scotland, public or private, without being asked about the inquiry or being told in no uncertain terms how I should conduct it."

Lord Fraser has said that he had no power to compel people to appear before the committee but warned that he will name and shame anyone who refuses to be questioned.

'Interested parties'

He also revealed that an appeal for e-mail evidence from whistleblowers has received an "extraordinary" response.

Potential witnesses were told they could give evidence with confidence that it would not be used against them in any criminal proceedings. But he stressed that they would not be immune from prosecution.

Lord Fraser also warned that while witnesses would not have to take an oath they could be recalled if it was felt they held anything back while on the stand.

Margo MacDonald urged Whitehall co-operation

He said: "There will be the rights of the Scottish Parliament or for the earlier period the rights of the Westminster Parliament to summon such persons to give further evidence and should I have concerns about the veracity of any witnesses' evidence I shall not hesitate to recommend appropriate action."

The first phase of the inquiry will focus on the events which have taken place throughout the life of the Holyrood project while the second phase will look at all the material received.

Independent MSP Margo MacDonald, a strong critic of the handling of the project, said her main concern was the extent to which Whitehall departments would fully co-operate in providing all the documentation.

"From what I heard today I believe Peter Fraser will manage to walk the tightrope between the credibility that the inquiry has to have with the public by being as transparent and accessible as possible, and the absolute requirement on him to ensure that no contractor or consultant or anyone concerned is given the opportunity to open up legal action against either the inquiry or the parliament," she added.

Lord Fraser expects to report his findings in the summer.