Claims that council inaction has left a prominent Crieff building in a derelict state have been rejected by the local authority.
A row broke out this week after it was announced the Royal Bank of Scotland whose branch lies next to the vacant Drummond Arms Hotel had decided to pull out of the town.
Structural damage to its premises forced the branch into temporary accommodation but with no end to the situation in sight, it has decided to close in June.
Tory MSP Liz Smith said the council should have done more to head off the problem, saying: “The news that the Royal Bank of Scotland is to close its branch in Crieff is very bad news for Crieff and will clearly impact on the local economy.
“The circumstances which have led to the Royal Bank of Scotland having to make this decision give cause for concern given that the bank has been put into a situation where, due to Perth and Kinross Council not enforcing a serious disrepair notice or compulsory purchase order on the owners of the Drummond Arms Hotel, the branch has become unsuitable.
“It would seem that the Royal Bank of Scotland have tried to seek a solution to keep the branch open against the odds.
“I, alongside my colleague, Councillor Ann Cowan, will be seeking an urgent meeting with RBS management to try to find a way forward and change the bank’s mind, to try to find a positive solution which may change their mind and persuade them to stay in Crieff.”
A council spokesperson said: “Perth and Kinross Council has already been working with the Royal Bank of Scotland regarding their circumstances in Crieff and we are happy to continue this joint approach to find a way forward for the future of the bank in the town.
“It would be wrong to suggest that the council has not taken action we have engaged with the owners of the Drummond Arms Hotel to seek a resolution and have twice served a defective building notice on them, in January 2012 and again in December 2012, after ownership was transferred to another company.
“The Drummond Arms Hotel has been assessed as defective and in need of significant repair but is not in a dangerous condition. The council would only take action if the building were to pose an immediate danger to public health and safety.”
Council leader Ian Miller said: “I am very disappointed to learn of this decision by RBS, particularly as we have continued to work with the bank to help enable their ongoing presence in Crieff, including a recent extension to their property lease.
“The council cannot reasonably commit to provide the significant level of funding required to make repairs to this privately-owned building. We will be seeking a resolution of this matter in conjunction with RBS and the property’s owner.”
Ann Cowan said it had proved extremely difficult for council officials to seek action against the owners.
Gordon Banks, MP for Ochil and South Perthshire, said he was in ongoing talks with the bank. “The retention of such services in Crieff and the impact of derelict buildings such as the Drummond Arms Hotel should be top of everyone’s agenda so that such incidents can be eradicated from our high streets,” he said.