Devon hotelier in Lib-Dem pact

A Devon hotel is this week hoping to resolve a two-year dispute with Liberal Democrat politicians over an unpaidbill.

The Grand in Torquay was chosen by the Federation of European Liberal Democratic and Reform Parties as the venue for its four-day annual conference in December 1993, booking all 110 bedrooms in the hotel for delegates.

However, a third of the delegates then failed to turn up without telling the hotel, leaving it unable to relet its rooms and with an outstanding bill of more than £8,500.

The hotel attempted to serve a writ on the organisation, based at the European Parliament in Brussels, but was told by the Belgian authorities it was not, in fact, a legal entity and therefore a writ could not be served.

Solicitors then advised the hotel to pursue all the delegates who had attended the conference, including Liberal Democrat leader Paddy Ashdown, to try to obtain the money.

However, the Federation's legal department has now relented and agreed to pay the £8,500 bill plus £700 in costs. It has said it will pay the money by tomorrow.

"We've been told we are getting the money but we've been told that before," said general manager David Knights, who declared he was still angry about what had happened.

"It isn't a large proportion of our sales, but cash flow is the most important thing," he added. "It affected our cash flow at the worst possible time of the year. We would have expected the cash in January or February when we needed it most."

Mr Knights added: "I think it is atrocious that a body such as this can get away with avoiding paying so much money."