Winter of discontent over bid to privatise Hogmanay party

EDINBURGH'S Hogmanay celebrations could be handed over to a private company to run under plans being considered by council chiefs.

The move, which would involve all the city's Winter Festival events, is designed to ensure "best value for the public purse" and to tap into the "expertise" of business leaders.

But the idea of the council losing control sparked some concern today, amid fears that the private companies could try to increase profits by raising prices.

Opposition councillors also warned that the proposed switch could be an attempt to cut jobs.

All the major summer festivals, such as the Fringe and film festival, are run separately from the council – although most still receive some public funding.

The proposed change was revealed in an internal memo from the new director of city development, Dave Anderson, leaked to the Evening News.

He said today: "The winter festivals are as important to Edinburgh's continued economic success as any of the other world-renowned festivals in the city.

"As the only festivals to be managed directly by the council, we need to constantly review the services we're providing to ensure best value for the public purse.

"As several aspects of the winter festivals are already delivered by the private sector, it makes practical sense to explore whether this can be extended to ensure our winter festivals continue to be the best in the world."

If the plans go ahead, the local authority would still be involved at a strategic level, but council employees would relinquish their management role.

Former Labour Lord Provost Lesley Hinds said: "This seems like a way to cut back on staff.

"It's also important to make sure that Hogmanay reflects the people who live in Edinburgh. If it is just about making money, then prices may well go up."

Labour group leader Ewan Aitken added: "This is not what the Lib Dem/SNP administration said it would do. This is yet another broken promise."

Last year, around 10,000 tickets and passes for Hogmanay remained unsold and the winter festivals overspent by around £310,000 as a result.

Council officials admitted they struggled to market the street party in the face of "extensive public speculation" about the future of the event, which led to "a considerable lag on ticket sales". Organisers also had to cope without the financial support of a main sponsor, after RBS ended its involvement the previous year.

But the event was still hailed a success, and over £1.3 million has been earmarked for this year's winter celebrations.

City leaders have predicted the winter festivals will now go on to attract larger audiences and big-name sponsors.

Deputy council leader Steve Cardownie said today: "Dave Anderson has come from Scottish Enterprise Edinburgh and Lothian, and anything he has to discuss on the future success of the festivals I will take on board.

"The winter festivals have been extremely successful and we want to be number one in the world."

Durham-based company She's Gott It! produced the programme of Christmas events for the council for the first time last year.

Unique Events ran the Hogmanay celebrations, but a decision on a new contract for 2008/9 will be reached shortly.