Important lessons to be learned from The Gathering

There are important lessons to be learned by all public bodies about
using the private sector to help deliver their objectives following the losses
incurred through the 2009 event The Gathering.

Audit Scotland has reviewed the public funding of The Gathering, an
event held in Edinburgh in July 2009 as part of the Homecoming Scotland
programme, and has published a report today, The Gathering
2009.

The Gathering aimed to attract people with Scottish ancestry and a love
of Scotland to Edinburgh for a weekend of celebrations. The company
delivering the event, The Gathering 2009 Ltd, received £670,500 in public
grants and loans, and the project reportedly brought economic benefits of
around £10 million to Edinburgh and Scotland in tourist spending.

Auditor General for Scotland Robert Black said:

“It has been widely reported that the private company
delivering The Gathering event ran into financial difficulties. Despite public
sector support and attempts to save the company, it has gone into liquidation
with outstanding public and private creditors. The public sector invested
£670,500 into the event, in the form of £490,500 worth of grants, and a
Scottish Government loan of £180,000.

“There are important lessons to be learned from this about using the
private sector to help deliver public sector objectives, and in particular how
best to protect the public investment involved. There needs to be a clear
understanding of the relationship between all parties. This includes clarity
about the roles and remits of each partner and the expectations about
reporting and financial monitoring. All of this needs to be underpinned by
clear and regular communication.”