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Last Updated: Monday, 22 September, 2003, 15:33 GMT 16:33 UK
Holyrood price tag tops �400m
The new parliament building
The estimated cost of the parliament has risen above �400m
The estimated cost of the new Scottish Parliament building has officially topped �400m.

Presiding Officer George Reid blamed the latest price rise on delays which were announced last month.

He gave details of the �31.9m increase, which takes the estimated price to �401m, in a letter to the parliament's finance committee.

Scottish Tory leader David McLetchie said the latest increase was "sadly no longer a surprise".

The Scottish National Party called on the Scottish Executive and the UK Government to take responsibility for the "fiasco".

Organisation costs

Mr Reid announced last month that the Holyrood building would not be ready until July next year.

On Monday, he wrote to MSPs telling them the impact of that delay on the cost of the project.

Consultants estimate that it will cost an extra �15m to pay for the builders, scaffolding and cranes for another few months.

Mr Reid said that VAT of �2.6m and an additional �2.5m for extra site organisation costs took the total estimated cost to �389.4m.

In addition, a �10m contingency fund has been created in case anything else goes wrong.

We will continue to claw back every penny on final account settlement
George Reid
Presiding Officer
The VAT on that figure is estimated at �1.8m, taking the overall total to �401.2m.

However, Mr Reid has also warned contractors that the parliament will not be short-changed.

He said that any claims for extra cash would be "stringently examined" and stressed there was no absolute entitlement to additional money for any contractor.

The presiding officer gave the example of one contractor's bill which had been cut by �1m to �4.2m.

Mr Reid said: "We will continue to claw back every penny on final account settlement and fiercely guard the contingency which is built into the July completion.

Greater detail

"The programme itself is moving along swiftly and we expect to see parties opening discussions about the allocation of office space in the coming weeks."

Mr McLetchie said he was not surprised by the latest increase.

"Whilst we have greater detail than ever before about which contacts have spiralled out of control, it is time to name the guilty men and women who care more about grand political gestures than prudent financial responsibility.

Chamber
The Holyrood building is due to be completed next July
"Instead of acknowledging public outrage about the scandalous rise in the cost of Holyrood and doing everything possible to address the problem, too many MSPs wanted to brush the whole thing under their multi-million pound carpets.

"This is particularly true of the Labour Party, where the blame for this whole affair undoubtedly lies."

SNP finance spokesman Fergus Ewing said costs were out of control because the wrong type of contracts were drawn up in the first place.

He said there was an "extremely strong case" for Westminster to meet all the extra costs which resulted from its decision.

"I suspect that there will be more rises to come and it's about time that the government both in Scotland and at Westminster took responsibility for this farce which is of their own making," he said.


WATCH AND LISTEN
BBC Scotland's Kirsten Campbell
"Money has gone down the pan on the parliament's loos"



SEE ALSO:
Holyrood inquiry gets under way
12 Sep 03  |  Scotland
Further delay for Holyrood project
21 Aug 03  |  Scotland
Holyrood 'name and shame' threat
29 Jun 03  |  Scotland
Dewar defended over Holyrood
15 Jun 03  |  Scotland
McConnell unveils Holyrood probe
12 Jun 03  |  Scotland
Reid enforces Holyrood fees cap
10 Jun 03  |  Scotland


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