Lerwick Port Authority (LPA) and Shetland Islands Council have reached a negotiated settlement on the claim payable by the Council relating to the abandonment of a dredging project in 2005 due to the former Bressay Bridge Project.

Both LPA and the Council are content to have settled the claim at £4,825,727 before matters reached the Court of Session in October this year.

Sandra Laurenson, Chief Executive of LPA said "The Board of the Authority welcomed the recent engagement to resolve this long-standing issue and are pleased to settle the action. This allows the Authority to move forward on new investment projects for the benefit of the whole Shetland community".

The Council's Political Leader, Josie Simpson said "I think the fact that the Council and LPA have worked together to find a solution, without the need for further expensive court action, is an important aspect of this settlement.

"Although the settlement comes at a time of severe budget pressures, I think it was in the best interests of Shetland that we resolved it now. I'd like to thank Lerwick Port Authority for being so receptive to the Council and for dealing with this difficult matter in such a professional manner. I’d also like to thank Gordon Greenhill for the work he carried out for the Council during the negotiating process.

"This has been a difficult and long running sore between the two organisations, but the settlement agreed between us means that a line can be drawn in the sand and both can move ahead”.

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