City chiefs under fire as projects' funding cut

CITY leaders were today warned that decades of work to regenerate Edinburgh's most deprived areas is being undone by their handling of a new Government fund.

Dozens of community organisations face the threat of closure, and opposition politicians claim that at least 20 voluntary posts have already been lost.

Former minister for communities, Malcolm Chisholm, said local projects are being "devastated" by the implementation of the new Fairer Scotland fund.

The Government initiative, which has replaced seven previous community grants, has eight national outcomes – such as improving chances for young children and preventing crime. But the council, which is responsible for distributing the city's £7.5 million allocation, will only hand out money to organisations that can achieve three priorities – early intervention in the cycle of deprivation, health improvements and job opportunities.

Voluntary sector chiefs today warned that several existing bodies, particularly those which facilitate regeneration rather than provide an actual service, could be wound up.

Some of the organisations thought to be facing either a service reduction or closure include the Pilton Equalities Project, the North Edinburgh Childcare Centre and the Granton Information Centre, while the Wester Hailes Representative Council was due to close its doors last week.

Mr Chisholm, Labour's MSP for Edinburgh North and Leith, said: "There was a cash standstill budget to the council from the Scottish Government, but there is no way this should have led to a £600,000 cut on a budget of £1.6m for north Edinburgh. This will devastate many superb local projects.

"The council either doesn't understand the implications of what it is doing or is showing callous disregard for my constituents."

Labour Forth councillor Elizabeth Maginnis, who is also manager of the Pilton Equalities Partnership (PEP), added: "This is bound to lead to job losses in the area. North Edinburgh has a large voluntary sector, and my own project – the PEP – only meets two of the criteria, and I'm sure that will mean a reduction in our budget, which will affect staffing levels."

Shulah Allan, director of the Edinburgh Voluntary Organisations Council, added: "Our concern is for services that are already in communities, because their future is now uncertain because of the changing priorities."

But a council spokeswoman said: "The Fairer Scotland fund has been conceived as a more focused funding stream to tackle the causes of poverty and deprivation, and recipients must ensure they are achieving set outcomes as determined by the Scottish Government.

"As a result, the Edinburgh Partnership, of which the council is a member, undertook an exercise to determine the most pertinent priorities for the city so that funds can be allocated in a way that will have greatest impact in areas."

DEMISE OF A UNITED COMMUNITY VOICE
THE Wester Hailes Representative Council was forced to issue redundancy notices after council officials warned that it did not fit the new Fairer Scotland funding criteria.

The organisation was set up in 1981 to provide a united voice for the community.

In 1999, Communities Minister Wendy Alexander hailed the organisation as an example of how to create a "strong sense of community".

But speaking at a recent council meeting, chairwoman Ann Denholm told politicians that the organisation faced a funding crisis following the introduction of the Fairer Scotland fund.

The group had previously received core funding from the now-defunct Community Regeneration Fund, and was earlier this year advised that it did not fit the new criteria.

All staff were issued with redundancy notices and were scheduled to leave at the end of June, when the premises were due to close down.