► Legal action over “flawed” Lews Castle hotel lease
The Comhairle insists it will “vigorously” defend the Lews Castle row court action.
The council faces legal action in the Court of Session which claims its decision in award a lease of the £4 million upgraded Lews Castle upper floors is “flawed.”
Kenman Holdings, which runs the Cabarfeidh, Caladh and Royal hotels in Stornoway, is also lodging an official complaint over subsidy rules with the European Commission.
Council leader Angus Campbell challenged Kenneth Mackenzie’s suggestion “regarding a subsidised operation.”
Mr Campbell said: “Natural Assets Investments Ltd are committed to a minimum capital contribution of £500,000 as well as taking the whole operational risk associated with the project.
“The procurement of the private sector partner undertaken in 2012 was open and transparent.
“Despite registering his interest during the open tender period, Mr Mackenzie chose not to submit a tender.”
The council leader continued: “We have every confidence in our processes and procedures regarding the Lews Castle Museum and Archive project, including the appointment of our operator partner.
“I am extremely disappointed at what I hope is not an attempt to undermine the most significant investment in cultural and tourism assets ever undertaken in the Outer Hebrides.
“This is a flagship, generational project for the community of the Outer Hebrides which will create much needed jobs and benefit businesses throughout the area.
Mr Campbell said: “The new tourism strategy highlights accommodation as a key strategic action, especially investment in the range and quality that meets expectations.”
Comhairle to “vigorously” defend Lews Castle court action
19 May 2015
