T in the Park received a last-minute £150,000 handout of taxpayers’ money to help its move to Strathallan this year.
Conservative MSP Liz Smith is now demanding to know when organisers DF Concerts first asked the Scottish Government for the bailout.
The money was allocated from the Scottish Government’s State Aid budget on July 2 to “help ensure the successful transition” of T in the Park to its controversial new home at Strathallan.
Forced to move from Balado because of safety concerns, there were complaints the new site at Strathallan was unsuitable because of traffic problems and the possible impact on wildlife.
Nevertheless, councillors approved the switch in May.
The three-day event failed to sell out and there were hundreds of complaints about the organisation of the event, with transport to and from the site a particular issue.
The State Aid funding was not revealed until details were posted on the Scottish Government website earlier this week.
It states: “T in the Park, delivered by DF Concerts, has received one-off grant funding support of £150,000 from the Scottish Government to help ensure the successful transition of this iconic music festival to their new temporary site at Strathallan in Perthshire.
“The outcomes of the grant aid are to, support the objectives of Scotland’s national events strategy and enhance Scotland’s major events portfolio; boost the events, tourism and national economies; and achieve the successful transition of the T in the Park event from Balado in Fife to Strathallan in Perthshire.”
It is estimated the festival generated more than £15 million for the Scottish economy in 2014.
A Scottish Government spokeswoman told The Scotsman: “T in the Park is one of Scotland’s most popular and successful annual cultural events, which last year generated £15.4 million for the Scottish economy, as well as employment opportunities in the staging and delivery of the event.
“Recognising the economic and tourism benefits T in the Park delivers for Scotland, the Scottish Government invested £150,000 to support relocation of the event.”
Despite the Scottish Government describing Strathallan as a “temporary home” for T in the Park this was contradicted by festival organisers DF Concerts, who said tickets for next year’s event at Strathallan will go on sale later this year.
Liz Smith, MSP for mid-Scotland and Fife,who has called for a full review of this year’s festival following several complaints about how the event was staged, said taxpayers “deserve to know” the full details of the last-minute deal.
She said: “Whilst it is not unusual for festival events in Scotland to receive Scottish Government funding, it is very important that there is absolute clarity and transparency over the recent funding for T in the Park.
“I have written to ministers to ask the specific questions, the most important of which relate to exactly when the Scottish Government was first approached about the provision of additional funding for T in the Park at Strathallan and by whom?
“Given all the issues about this year’s festival it is vital that these answers are provided as quickly as possible. The taxpayer surely deserves to know the details.”
A spokeswoman for the Strathallan T Action Group (STAG) said: ‘It is a scandal that the Scottish Government is bailing out a company that has access to so many other sources of funding. We don’t understand why DFC did not turn to their sponsor, Tennent’s, or to US giant, Live Nation, which has a substantial stake in DFC. It is an inappropriate use of taxpayers’ money and arguably it should be repaid.
“Certainly, we support Liz Smith’s call for greater transparency about the details of the grant. We also believe there should be greater scrutiny of the claimed financial benefits of the festival, both locally and nationally.”
A spokeswoman for Perth and Kinross Council said: “While the council was aware that ticket sales were down on previous years, we were not aware that there were any significant funding issues with T in the Park.
“It is the responsibility of the event organiser to ensure funding is in place for their event. This does not fall under the council’s statutory duties as the local planning and regulatory authority and we are not aware of which bodies an event organiser might be seeking funding from.”
A DF Concerts spokeswoman said it was “100%” certain T in the Park would be returning to Strathallan and that it generates huge sums for the Scottish economy.
She said: “Many events in Scotland – often with smaller audiences and less economic impact than T in the Park – receive public funding. There is nothing secret at all about the award of £150,000 to the festival – the awards process has been as transparent as it is for any other event or organisation.
“However our application this year is due to exceptional circumstances. T in the Park was forced to move from Balado – it was not a decision made by us – and switching site is a hugely complicated and expensive process. In fact, it is the biggest move ever undertaken by a music festival of this scale in the UK, organised in just a few short months. The cost has been substantial – to put in perspective, we have invested a seven-figure sum in bringing the event to life at Strathallan.
“In return, the festival has brought hundreds of millions of pounds to the Scottish economy over twenty-plus years. We’re grateful that ministers recognised the event’s importance with this payment to support the massive operational investment.
“Despite undoubted challenges this year, Strathallan is the right site and our team are working tirelessly to ensure next year’s T in the Park is at its best”