Executive to escape EU Holyrood penalty
12 Oct 06
Mistakes in tendering process for parliament building made "in good faith"
The European Commission is expected to announce today that an 18-month inquiry into how the contract for the £431 million Scottish Parliament building was awarded will be dropped, according to the Scotsman newspaper.
The inquiry could have led to a large fine, potentially millions of pounds, for breaches of EU competition rules that are supposed to ensure a level playing field for EU companies bidding for public contracts.
The Commission had the Holyrood project under investigation because Enric Miralles, the architect appointed to design the building, did not have adequate professional insurance cover; and because the chosen contractor, Bovis Lend Lease, submitted the highest tender of those on the shortlist.
The Commission has been in talks with the Scottish Executive and ministers in London, as competition matters have to be dealt with through national governments.
The UK is believed to have accepted that mistakes were made in good faith during the tendering process, and to have represented that measures have been put in place to ensure that proper procedures are followed in future. These include intensive training in EU law for relevant Scottish central and local government officials.