§ Mr. Allan Stewart
asked the Secretary of State for Scotland if any tender or offer of settlement has been made in connection with current arbitration between the Greater Glasgow health board and Costain Construction Ltd arising from work carried out on the hospital for sick children at Yorkhill, Glasgow.
§ Mr. Michael Forsyth
Following negotiations between representatives of the health board and Costain Construction Limited, the firm made an offer of a payment of £3.75 million in settlement of the health board's claim on the basis that each side should meet its own costs, which include half of the costs of administering the arbitration. This offer has been accepted by the health board. I am satisfied that this settlement represents a reasonable and acceptable conclusion to this dispute, taking all considerations into account including the possible outcome and the substantial costs involved in continuing the formal arbitration process.