By Steve Bargeton, political editor

LORD MIKE Watson of Invergowrie yesterday resigned in disgrace as an MSP and as a director of Dundee United Football Club after admitting deliberately starting a fire in a top Edinburgh hotel.

The 56-year-old Labour peer pleaded guilty at Edinburgh Sheriff Court to a charge of wilful fire-raising by setting fire to a curtain at the Prestonfield House Hotel and putting lives in danger following an awards dinner.

A not guilty plea to starting a second fire in the hotel was accepted by the Crown.

The former culture, tourism and sport minister watched from the dock as the court was shown CCTV footage of him in the early hours of November 12 last year crouching down at the base of a curtain which, minutes later, was engulfed in flames, filling the room with smoke.

The damage from the blaze, for which Lord Watson has already compensated the hotel, amounted to £4500.

Sheriff Katherine Mackie deferred sentence until September 22 for background reports.

Lord Watson’s peerage is not affected by his conviction.

His defence agent Paul Burns told the court it was tragic that the high-powered career of a passionate and veteran politician had been toppled by one regrettable incident which “defied rational explanation.”

He said his client had been very drunk on the night and found his own behaviour “incomprehensible” and that the MSP did not want to bring down the reputation of the Scottish Parliament, which he supported so ardently.

“The events of this night are incomprehensible to Mr Watson as they must be for many other people,” said Mr Burns.

“He was stunned and bewildered to be in the situation he found himself. It was without motive or reason and he gives no excuse.

“I do not think this matter can simply be explained in terms of alcohol. Prices are to be paid for the pressures of public life. Sadness and disappointments in his private life can, I suspect, go some way to help explain the sad events here.”

Lord Watson left the court without comment. A statement was later read out on his behalf.

“This has been and continues to be a traumatic time for Mr Watson, his wife and immediate family,” it said.

“He fully recognised that his inexplicable actions on that evening which were totally out of character have caused great distress to a number of people.

“In taking full responsibility for his actions he realises that he can no longer represent the people of Cathcart as an MSP.

“He fully apologises to his constituents and feels he has let them down.

“He is devastated at the distress this incident has caused to his wife Clare and his immediate family. He feels extremely privileged at their continued love and loyalty.”

The spokesman said Lord Watson offered his “sincere apologies” to all those who attended the Prestonfield House event last November.

Holyrood Presiding Officer George Reid will fix a date for the Glasgow Cathcart by-election which must take place within three months.

Last night an SNP spokesman said, “Mike Watson’s criminal behaviour leaves him with no option but to resign as an MSP. There is no place in public life for someone convicted of such a serious offence.”

Scottish Tory chief whip Bill Aitken said, “This protracted saga has now reached its inevitable conclusion.

“Having acknowledged his guilt, it is quite right that he tenders his resignation as an MSP, given the serious nature of the offence.”

Lord Watson contacted Dundee United chairman Eddie Thompson at 9.30 am yesterday, before the court appearance, and offered his resignation.

The two men, friends for 15 years, had worked closely together as Mr Thompson sought to gain control of the club.

Mr Thompson, who took over at Tannadice in September 2002 and appointed Watson to the board 11 months later.

The Dundee United chairman said yesterday, “It is with regret that we have today accepted the resignation of Mike Watson as a director of the club.

“On behalf of the club and the board of directors I would like to thank Mike for his contribution to Dundee United as a director over the past two years and his support for the club as a fan for over 40 years.”

Lord Watson’s responsibilities as a director of United had included overseeing their efforts to establish a club museum and editing their matchday programme.

Lord Watson was suspended from the Labour Party when charged with fire-raising and now seems certain to be expelled.

If he receives a non-custodial sentence his suspension will be reviewed by Labour’s national constitutional committee. If he is sent to prison, the matter will be dealt with by Labour’s national executive committee.

A former Dundee High School pupil, Lord Watson graduated from Heriot Watt University with a BA honours in economics and was employed in a workers’ organisation before turning to politics.

He left Westminster politics when boundary changes eliminated his constituency and he lost a candidate selection contest to Mohammad Sarwar for the Glasgow Govan seat during the 1997 election.

He was made life peer Lord Watson of Invergowrie as compensation and stood for election again in 1999, winning his present seat.

He was the architect of the controversial member’s bill that abolished hunting with dogs in Scotland.

He was appointed culture, tourism and sport minister four years ago under Jack McConnell but was sacked in the 2003 election reshuffle.