ALAN RODEN

TAXPAYERS will be forced to foot the bill for any damage during the Capital's G8 protests in the event of a riot.

A 183-year-old law exempts insurers from paying out for "civil commotion" and requires local authorities to pick up the bill.

A senior City Chambers source today said the chief executive of the council has expressed private concerns about the cost to Edinburgh taxpayers if protests turn violent and city centre shops and other buildings are damaged.

Tom Aitchison is understood to have warned councillors that the local authority could be forced to pay millions of pounds in compensation if a full-scale riot erupts on the first weekend in July, when up to 200,000 protestors are expected in the Capital for the Make Poverty History march.

The Riotous Assemblies (Scotland) Act of 1822 covers both residential and commercial properties in these situations, but different legislation in England means the police have to pay out, and not councils. And the Home Office is currently reviewing the 119-year-old law in a bid to repeal it, requiring insurance companies to pick up the bill instead.

The Foreign Office has confirmed it will not pay for any damage caused by G8 demonstrators during the weekend of July 2 and 3, when the world's leaders stay at Gleneagles in Perthshire.

A council insider said: "Tom Aitchison has told senior councillors that he is worried about what happens if a riot erupts. The council could be forced to use revenue from council tax to pay for all the damage, which they can't really afford."

The prospect of damage and hefty bills for landowners and businesses has been acknowledged by G8 organisers as a potentially serious issue.

Those who are insured will mostly have policies allowing them to make standard claims through their insurance companies, but those companies will in turn be able to claim money back from the city council.

The police would have to officially declare that a riot had taken place before insurers would be exempt from paying out for damage to businesses in the Capital and claimants would have to show that damage occurred at a particular time in a specific location.

Lib Dem councillor Tom Ponton today said he would write to Mr Aitchison demanding a full explanation of the situation. He added: "I am shocked and appalled to hear about this."

Richard Saville-Smith, who is organising the Make Poverty History march, said: "Over 400 organisations make up the Make Poverty History coalition - from Unicef to Unison, Save the Children and the National Union of Journalists.

"When you understand who's going to be in Edinburgh on July 2, you understand why there's not going to be a riot. There may be rogue elements but these will be a tiny minority and we're confident they will not detract from the impact of the day because, after all, why should they want to?"