A study which said Sir Ian Wood’s £140million vision for Union Terrace Gardens in Aberdeen could be delivered was funded with taxpayers’ money earmarked for a rival scheme.
Scottish Enterprise paid for the £190,000 feasibility report into the City Garden Project by using part of the £2million grant it awarded the Peacock Visual Arts group, it can be revealed.
Peacock’s plan to build a new centre in the gardens collapsed in May last year after councillors voted to accept the principle of Sir Ian’s alternative proposal of creating a street-level square and garden at the Denburn Valley.
Scottish Enterprise admitted for the first time yesterday that the agency used the same pot of public money to simultaneously support the projects.
Aberdeen City Council also confirmed it was aware that the Peacock grant was being used to fund the feasibility study, but a spokesman said that a new contemporary arts centre was a major part of Sir Ian’s proposal from the outset.
Opposition councillors called for new local authority chief executive Valerie Watts to launch an investigation last night.
Labour group secretary Willie Young said: “The chief executive needs to investigate this. We will be writing to her and to Scottish Enterprise to ask if this was an appropriate use of the money.”
Sir Ian, chairman of oil services giant the Wood Group, offered £50million of his fortune towards a transformation of the gardens in November 2008, when it was also announced that Scottish Enterprise would fund a feasibility study to see if the scheme could be delivered.
In March 2009, the Scottish Government agency confirmed the grant for the Peacock project, signing a contract with Aberdeen City Council which said the money was to be used for a contemporary arts centre in Union Terrace Gardens.
The legal agreement – seen by the Press and Journal – specifically mentions Peacock Visual Arts.
A local authority spokes-man said at the time it was hoped Peacock would be involved in the City Garden Project.
Peacock Visual Arts director Lindsay Gordon could not be contacted last night.