TheGrandWazoo
Veteran Member
Assuming with decent certainty that Lothian is run like any other shareholder business that aims to generate profit...
Edinburgh Council will not dictate Lothian strategy. They'll have board representation, probably proportional to their large shareholding so to say they aren't happy with the LCB effort is unlikely - they would have voted it through in the first place. The board would have approved a business plan that would factor their plans, including we can assume multi year losses and long term strategy to bring the operation to profit. Now there is a decent chance the figures in that business case aren't stacking up any longer and the investment and strategy probably has and will get called into question.
Major shareholder companies tend not to make massive changes whilst undertaking changes of upper management, they tend to keep doing what they are doing, and make no major changes. This allows new management to come in, review activities - what should we stop doing, what should we continue doing, and what should we start doing.
Any of those options would then be presented to the board in the form of a revised, or totally new business case and at that stage your talking about decisions along the line of "stop LCB" "continue through with LCB" or "let's try something different with LCB"
So I think to suggest substantial sudden change is not only unhelpful speculation it's also not grounded in reality.
Some really good points.
Clearly the shareholders will have had some visibility of the expansion plans and that they will have included the start up costs and projections of revenue/cost performance including losses for a considerable period. As you rightly say, if actual performance is diverging from projected adversely (and by a margin) then you would expect strategy to be questioned and evaluated as to how and why, and what will be the next steps.
That Richard Hall is leaving in the manner in which he is does raise questions about current performance and the strategy. I doubt it will be some ripping up of it because the investment (commercially and emotionally) by both the management team and the shareholders. Certainly, you can see some drawing of the horns (and we've already seen that) and that there will be changes; to continue to do the same thing evokes the famous Einstein quote. Depending on the impact of BBT (and what the next phase will consist of) will also be focusing minds.
Personally, I hate the partisan crowing on both sides. The people who think this is some pre-cursor to LCB's imminent retraction are equally as misguided as those who think that people from Wester Inch are going to be massively swayed by the ability to seamlessly transfer to Oxgangs. Whilst this is a public forum where strongly held views can be held, they should be reasoned and respectful.