TRADERS and residents hit by the West Port closure are celebrating after winning a compensation deal that could see them recoup thousands of pounds.

Up to 50 businesses in the area that lost money following the partial collapse of the old Post Office building have been offered "goodwill" funds from the site's owners, Kenmore Properties.

Under the deal, traders will receive payments that are likely to range from a few hundred to thousands of pounds.

Dozens of residents who were evacuated have also been invited to apply for payments, although it is thought they will receive less than the area's traders.

However, business chiefs today criticised Miller Construction – the company carrying out the demolition – for failing to put any money into the scheme, despite its involvement in the collapse.

Graham Russell, chairman of the Federation of Small Businesses in Edinburgh, said West Port traders were delighted to be offered the compensation. However, he added it was unclear how much they would receive.

He said: "The traders are delighted to get this letter, but they need to be careful as there are pitfalls. This is not a fund, but a one-off payment, and so any money from it will only cover the businesses up until the point they make their claim.

"These payments could be anywhere from £100 to more than £5000, depending on how much business has been lost. And even then, there's no guarantee the traders will get all of it.

"Kenmore are asking to see profit figures to prove loss, which is always difficult, and traders could end up only getting a fraction of the amount they submit.

"What is even worse is that Miller are not contributing to this fund. We can't believe that they are washing their hands and leaving someone else to deal with it all."

A spokeswoman for Miller said the firm had no comment to make other than that it was Kenmore's decision to set up the goodwill fund and administer it.

Residents can apply for money by submitting details of money spent on accommodation during their evacuation.

Each case will be reviewed individually, although Kenmore has refused to estimate how much the payments will be – arguing it is "too early" to set any prices.

They also stress the gesture does not mean they accept liability for the accident, which saw the fourth floor of the building collapse while being demolished on May 21st.

A spokesman for Kenmore said: "As a gesture of goodwill, we have written to those traders and residents most affected, inviting them to apply for an ex gratia payment. Although we do not have responsibility for the demolition process, we hope this demonstrates our sympathy for the recent frustration and disturbance."

The news was welcomed by traders, who said it was a "good start" in rebuilding their businesses and recouping some of the losses caused by the accident.

However, they added that they were "uneasy" about the lack of information over how much money they were likely to get.

Susan Macmanus, manager of the Lily West flower shop in the West Port, said: "It's definitely a positive thing that we've been offered these payments.

"However, we'll have to be very cautious because we don't have any money in our hands yet and we don't even know exactly how much we're likely to get."

Traders in the West Port are expected to attend a meeting tomorrow to discuss the offer and get advice from the city's small business chiefs.