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Public Audit Committee
Meeting date: 17 September 2025
Richard Leonard
I now invite Keith Brown to put some questions to the witnesses.
Public Audit Committee
Meeting date: 17 September 2025
Richard Leonard
Good morning. I welcome everyone to the 24th meeting in 2025 of the Public Audit Committee. We have received apologies from Joe FitzPatrick. I welcome Keith Brown, who joins us as Joe FitzPatrick’s substitute. Keith, do you wish to declare any relevant interests?
Public Audit Committee
Meeting date: 17 September 2025
Richard Leonard
I read somewhere that it was closed in May 2025.
Public Audit Committee
Meeting date: 17 September 2025
Richard Leonard
I am conscious that Stuart Black is joining the Economy and Fair Work Committee for its pre-budget scrutiny session, so we have been conscious of the time that we have had with you this morning.
I take this opportunity to thank Tim Hurst, Mike Gifford, Sandra Dunbar, Elaine Hanton and Stuart Black, the chief executive officer of HIE, for giving us your time this morning and answering the questions that we have been putting to you. As I said at the start of the meeting, this is a mini inquiry for the Public Audit Committee to look into the detail of how the project has performed and what the future vision and strategy for it is.
I thank you all for now, and we will see you again in the future, I am sure, when the committee organises its visit to speak to the community and other stakeholders, as well as visiting the site in the coming weeks.
I suspend the committee while we change witnesses.
10:42 Meeting suspended.Public Audit Committee
Meeting date: 17 September 2025
Richard Leonard
I resume today’s Public Audit Committee meeting by welcoming our guests to discuss the recently produced report by Audit Scotland and the Accounts Commission, “Flooding in communities: Moving towards flood resilience”. I am pleased that we are joined this morning by the Auditor General, Stephen Boyle. Alongside him are Rebecca Seidel, who is a senior manager at Audit Scotland, and Fiona Brannigan, who is an audit manager at Audit Scotland. I am also pleased to welcome Andrew Burns, who is the deputy chair of the Accounts Commission. Good morning.
We have some questions to put to you about the report. Before we do so, I invite the Auditor General to make an opening statement.
Public Audit Committee
Meeting date: 17 September 2025
Richard Leonard
Thank you very much indeed. I begin by asking you to elaborate on the direct and indirect impacts on communities of flooding. Could you develop a bit the argument in the report about the unequal effect of flooding on particular groups in society?
Public Audit Committee
Meeting date: 17 September 2025
Richard Leonard
That is very clear, thank you. I suppose that the corollary of that is that there has been a skewing of prioritisation to schemes in which higher-value properties are at risk. Is that what you are saying? Do you have evidence of that?
Public Audit Committee
Meeting date: 17 September 2025
Richard Leonard
The deputy convener, Jamie Greene, has some questions.
Public Audit Committee
Meeting date: 17 September 2025
Richard Leonard
Okay. You are proving why it would be useful for us to be able to visualise the site and its component parts.
I will take you back to the financial management element of the reinstatement of the funicular. In 2020, Audit Scotland produced a section 23 performance report that cited a figure from a meeting in February 2020, when the board considered that the cost of basically tearing up and removing the funicular would be £13.3 million, and the cost of reinstatement was estimated at £10 million to £15 million at that time. That was February 2020, which we all recognise as being the point at which the pandemic set in, and we know that the world changed quite a lot after that.
I will move us forward to the note that you helpfully supplied to the committee, which cites a reinstatement cost figure of £20.5 million. I have also seen a January 2023 figure giving a capital cost of £25.4 million. Will you talk us through that? You told us that you have paid £70,000 to the contractor Balfour Beatty, which is paying for the current work. Who has had to bear the burden of that cost inflation? Is it HIE or the subsidiary? Is it the constructor or the Scottish Government?
Public Audit Committee
Meeting date: 17 September 2025
Richard Leonard
That is fine. I will now bring in Colin Beattie.