TOURISM chiefs are calling for action on Edinburgh's rubbish-strewn streets before the capital's reputation is tarnished. A protracted dispute over pay has seen binmen impose a work-to-rule that has lasted since 25 June, disrupting collections of domestic and trade waste, as well as street cleaning services.

Last night, hoteliers and traders, who fear the mounting piles of rubbish will hit the city's reputation as a top tourist draw, demanded that the council bring in private contractors. They want the clean-up before the Gathering – a key part of the Year of Homecoming and the world's biggest clan gathering – which is set to take place this weekend.

UNION leaders last night hinted that Edinburgh's bitter rubbish dispute could be resolved within days – as it emerged private contractors had been brought in to remove trade waste mounting up across the capital's streets. Councillors and officials have been forced to appear on YouTube apologising for the state of the city's streets with the start of the festival season just days away.

They have insisted on bringing in outside firms to clear the huge backlog of rubbish, despite fears the move may lead to a full walk-out by council workers over a long-running wages dispute. But officials at the Unite union say they are hopeful of reaching a settlement within days if council leader Jenny Dawe sticks to a pledge their members will not lose out financially.

A breakthrough was announced in the pay dispute between Edinburgh's binmen and the city council last night after union leaders said they were set to call off industrial action that has caused chaos across the capital. Council chiefs expect refuse collectors and street cleaners to resume "normal working" by Friday after presenting fresh proposals for a wages shake-up to officials yesterday.

The council said it had "repeated and clarified" guarantees given over the past few weeks that staff would not lose significant amounts of money in return for accepting extra duties and new shift patterns. Although the Unite union has not backed any new pay proposals, the council said it had agreed to call for any further action to be halted while more detailed plans are worked up.