Construction work will begin on the V&A at Dundee in March after the Scottish Government pledged an extra £10 million, it has been revealed.
Ministers stepped in with the extra cash to ensure there are no further delays to the project, which bosses last week admitted was £31 million over budget and running 18 months late.
Amid concerns the museum of design may not materialise, Deputy First Minister and Finance Secretary John Swinney announced he was increasing ministers’ capital contribution to £25 million.
He said: “V&A Dundee will be an iconic statement at the heart of the Dundeewaterfront development.
“The signature building willcreate local jobs and contribute significantly to the regeneration of Dundee and its waterfront, giving the city and Scotland a world-class design museum and visitor attraction.”V&A at Dundee £31 million over budget Council chief “damn sure” project will happen despite £31 million shock Spiralling building costs ‘a surprise to all’, claims development chief How huge budget increase will be paid Call for inquiry into ‘who knew what and when’ about rocketing cost Comment:£45 million was ambitious but 78% hike is an embarrassment No amount of sugar coating can make this news taste sweetDiscussions are also ongoing between the Scottish Government and Dundee DesignLimited about the possibility of an extra £12.6m loan fund being provided for the waterfrontproject.
Sources said this money would almost certainly find its way to the banks of the Tay as part of a plan to ensure the money is found to see the museum built.
The money from the ScottishGovernment has been provided to make sure building work is able to carry onwithout more setbacks and in an attempt to keep potential investors’ confidence in the project high.
Dundee City Council leader Ken Guild, pictured, confirmed that construction would now start in March.
That brings the added bonus that heavy work will not disturb the summer’s seal pup season, an issue which had threatened to add another six months on to the hold-ups.
Mr Guild said £8.4m of the authority’s targeted £15 million fromprivate investors has been raised, with a seven-figure sum arriving within the last week, and predicted more money will come in than is being officially aimed for.
He added: “We have had some very frank conversations with ministers and senior civil servants and they realise the V&A is part of a project to regenerate Dundee, which will have a positive economic effect for thecity, region and all of the east coast ofScotland.”
Scottish Labour leader Jim Murphy, who will bring his shadow cabinet to Dundee today, said ministers now needed to ensure the museum sticks to budget.
He said: “When built the V&A museum will be a breathtaking sight anchoring the new waterfront development.
“The Scottish Government need to get a grip on the spiralling cost of its production but the building is vital to Dundee’s efforts to attract tourism from all over Scotland, the UK and the rest of the world.”
Veteran local councillor Ian Borthwick said: “It is an absolute debacle. It is difficult enough for a local authority to take the public with us in terms of transparency. It is issueslike this that damages credibility with the public.”
It is estimated the V&A will contribute £11.6 million to the economy every year andcreate hundreds of jobs locally.
In his weekly column for The Courier today,former First Minister Alex Salmond tells the council to “keep their nerve” and ensure the project goes ahead.
He says: “In Dundee the V&A team now have a fixed price contract and anexperienced contractor.”