Donald Trump may have to spend millions for 'risky' golf resort to make money » Communities » 24dash.com

US tycoon Donald Trump may have to spend £600 million on his planned golf resort before it begins to make money, an inquiry heard today.

Iain Webster, who was commissioned to assess the financial case for Mr Trump's £1 billion project, said that it was "risky".

Mr Webster, of accountancy firm Johnston Carmichael, said cash outflows for the Trump Organisation would be around £600 million over a six-year period before the project starts to make money.

He said demands on construction for the 2012 London Olympics and 2014 Commonwealth Games in Glasgow were also likely to drive up costs.

And he also revealed the costs to the organisation for the inquiry were around £1 million.

He was speaking at the second day of a public local inquiry into Mr Trump's proposals for the Menie Estate in Aberdeenshire.

The application, which includes two championship golf courses, a five-star hotel and 950 holiday homes, was rejected by Aberdeenshire Council last year.

It went to a public inquiry after being called in by the Scottish Government.

The proposed development has attracted opposition from environmentalists concerned about the effect it could have on delicate sand dunes, which are a Site of Special Scientific Interest (SSSI).

However, a number of leading business figures have voiced their support.

Today John Agnew, solicitor for campaign group Sustainable Aberdeenshire, asked Mr Webster if he agreed with Mr Trump's claim yesterday that it was a "high-risk" project.

Mr Webster said he agreed, adding that the project was "one of the largest I have ever seen".

He said: "There is a very real risk in terms of construction cost and construction cost overrun.

"This is a seven-year construction period, during which there is expected to be a higher than normal level of construction inflation.

"Also there will be construction going on in London for the Olympics and the Commonwealth Games in Glasgow, so costs are likely to go up.

"The accumulated cash outflow for the six years up to 2014 is over £500 million, before the project generates its first year of cash inflow - that is risky."

Mr Webster said that after interest on borrowing and tax was taken into consideration, the figure would be approximately £600 million.

Earlier the inquiry heard from the lead architect for the golf course, Martin Hawtree.

Dr Hawtree was asked about an alternative course design for the site commissioned by the RSPB which avoided the dunes.

The RSPB's David Tyldesley asked whether the alternative design could also become a "world-class golf course".

Dr Hawtree said: "I could make improvements to it, but I don't believe it would be world-class because the agricultural land which is substituted for the sand dunes is really no substitute."

The inquiry, at the Aberdeen Exhibition and Conference Centre, is expected to last three to four weeks.