ROYAL Bank of Scotland has cancelled plans for another glitzy awards evening amid mounting criticism of its extravagant parties as it awaits a £20 billion Government handout.
The Group Finance Awards were due to be held next Thursday at its Gogarburn Conference Centre, with some staff due to stay at the four-star Dalmahoy Hotel and Country Club.
The evening, for more than 100 staff, had already been scaled back from t
he elaborate evening held at the exclusive Gleneagles Hotel.
But staff at Gogarburn were told the whole event had been called off yesterday afternoon, with the bank saying it was "re-assessing" some planned events and cancelling those that are "not appropriate in the current environment".
It comes after it was revealed earlier this week that the company held a black-tie event in the conference centre at Gogarburn to recognise "outstanding achievement" from selected staff.
Reports that up to £300,000 was spent have been denied with the bill instead put at £24,000.
But it caused outrage as the bank has agreed to a £20bn injection of Government funds – effectively meaning that the taxpayer owns a large stake in it.
Originally, the finance awards, which are organised to recognise staff who have been nominated by colleagues for "exceptional performance", were to have a black-tie event at Gleneagles.
But as the financial crisis intensified, the company changed the dress code to lounge suit or cocktail dress and moved the venue to Gogarburn.
However, it was still planning to allow non-Edinburgh staff to stay at Dalmahoy, where standard room rates range from £105 and £182.50.
An RBS spokeswoman said: "We are, as you would imagine, re-assessing some planned events, which includes cancelling those that are not appropriate in the current environment."
The Evening News revealed yesterday that RBS is to spend £1 million on Christmas parties for staff this year.
It is to allow each staff member a £10 per head budget, with departments allowed to use the money towards their own events. The party budget, which is the same as last year, was labelled "obscene" by politicians.
SNP MSP Alex Neil, a member of the Scottish Parliament's finance committee, welcomed the news of the cancellation.
He said: "Without being a party pooper, I think that is the type of thing they need to send out a strong message on.
"I don't think they should be splurging out on parties and unnecessary events when the people that are funding it – the taxpayers – are facing unemployment."
The full article contains 430 words and appears in Edinburgh Evening News newspaper.
