This item was published during the term of a previous administration that ended in April 2007
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Cash for subsidence
28/03/2002
The Executive will provide
City of Edinburgh Council with an initial
payment of £646,841 of funding for the subsidence in
Ferniehill.
The payment - which will be made under the Bellwin scheme
for civil emergencies - follows subsidence in the area last
year due to the collapse of old limestone workings.
It will help reimburse the Council for immediate costs of
ensuring public safety after the subsidence. The costs were
primarily for the evacuation of people from their homes,
emergency work to safeguard buildings and the reinstatement of
local roads.
The Minister for Finance and Public Services Andy Kerr made
the announcement today in response to a Parliamentary Question
from Angus MacKay MSP.
Mr Kerr said:
"I am pleased to announce that City of Edinburgh Council is
eligible for an initial payment of £646,841 under the Bellwin
Scheme. The Scheme was triggered on 1 August 2001 following
representation from City of Edinburgh Council on costs directly
associated with the immediate aftermath of the subsidence."
Mr Kerr added:
"This is good news for City of Edinburgh Council - and, of
course, good news for the people of Ferniehill. This
significant award of £646,841 will help meet the costs of
ensuring public safety after the subsidence.
"It underlines that the Executive is committed to working in
partnership with local authorities to address the challenges we
face. Life in Ferniehill is starting to return to normal after
the subsidence - and this funding will help cover some of the
costs the Council incurred in bringing that about."
The Bellwin Scheme exists to give special financial
assistance to authorities who would otherwise be faced with an
undue financial burden as a result of providing relief and
carrying out immediate work due to large-scale emergencies
(usually storms). Where the criteria of the scheme are met,
grant is payable to authorities at 85 per cent of the eligible
costs incurred above a threshold set for each authority. For
the City of Edinburgh Council the 2000-01 threshold was set at
£826,005 but this threshold was breached by another Bellwin
Scheme (for the floods in April and November).
The City of Edinburgh Council requested the triggering of
the Bellwin Scheme to help meet the costs sustained in dealing
with the evacuation and temporary rehousing of residents in the
Ferniehill area and the demolition of dangerous structures.
Initial information from the Council suggested that the bulk of
the costs faced were for the evacuation of residents, the
demolition of buildings and the hire of additional
contractors.
Scottish Ministers, acting on subsequent information
triggered the Bellwin Scheme of emergency financial assistance
under section 155 of the Local Government and Housing Act 1989
on 1 August 2001.
Edinburgh suffered widespread damage as a result of the
subsidence. Eligible costs for these works and their associated
costs amounts to £845,543 in total of which £718,712 is
estimated as Bellwin grant after applying the 85 per cent limit
of grant funding. 90 per cent of this amount is payable
initially with the balance being paid on receipt of an audited
claim.