Donald Trump Golf Resorts demanded at least £ 3.3million in UK leave support | Scotland
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Donald Trump’s loss-making Scottish golf resorts have called for more than £ 3.3million in emergency aid from the UK government, to help staff on leave during the Covid pandemic.
The company’s accounts for the former president’s resorts in Turnberry in Ayrshire and Balmedie, north of Aberdeen, show its businesses cut 273 jobs due to the Covid crisis last year , while also claiming £ 2.8million in leave.
Other government data shows that Trump Turnberry and Trump International Scotland in Aberdeenshire then made new claims this year while the UK government’s job retention program was still in effect.
The BBC reported that these claims, not yet included in the Trump companies’ accounts, were worth between £ 520,000 and £ 1.3million, leading to a total demand for leave funding of between 3.3 and 4 million. , £ 1million in total.
The resorts reported heavy losses due to their forced shutdown during the shutdowns: the overall loss for Turnberry was £ 3.4million, following a profit of £ 321,000 in 2019, and £ 1.3million pounds sterling to Balmedie, up from a loss of £ 1.1million in 2019.
The accounts also show the two complexes owe Trump more money: Loans from the former president’s equity and the holding company he controls to the two companies now total £ 159million. The accounts show that the assets – land, buildings and equipment – at Turnberry are worth £ 86million and £ 32million for the seaside resort of Aberdeenshire.
Accounts suggest the family-owned holding company injected £ 1.1million into the Balmedie business to help with daily cash flow after she was forced to close the boutique hotel in the complex, named after her Scottish mother, Mary MacLeod, for all of 2020. It only reopened in April of this year.
Accounts show that the workforce at Turnberry, which has a five-star hotel, vacation lodges, spa, ballroom and two championship golf courses, has grown from an average of 541 employees in 2019 to 289 in 2020. In the much smaller seaside resort of Aberdeenshire, the average workforce has grown from 84 positions to 63 last year.
In a foreword to the accounts, Trump’s son Eric, who was given day-to-day control of companies after his father won the presidency, said the UK government money was useful because it helped build loyalty the staff. Many were later rehired, he said.
“Government support has been helpful in keeping as many jobs as possible, but the uncertainty of [sic] the duration of the support and the sustained impact of the pandemic meant that layoffs were needed to prepare the company for the long-term effects on the hospitality industry, ”he said.
Global controls on air travel, especially from visiting US golfers; the impacts on staff, supply chains and costs of Brexit; and general inflation, had all affected Trump companies, he added.
Confirmation that Trump resorts have received more than £ 3.3million in support on leave could have implications for a US House of Representatives investigation into whether the former president violated a clause in the constitution which prohibits US presidents from seeking and receiving financial rewards or benefits from foreign governments.
The Guardian reported last year that Trump’s Scottish seaside resorts were to receive property tax cuts of nearly £ 1million because business rate payments for hospitality and tourism businesses had been suspended due to the pandemic.
The US Congress has passed a law prohibiting companies in which Trump has a stake from receiving Covid-related bailout funds. Under Scottish and UK law, its Scottish seaside resorts have been granted the same rights of complaint as any other comparable company.
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