Calls for caution in search for replacement tram boss

Published on Wednesday 3 November 2010 16:41

Council chiefs were today urged not to rush into appointing a replacement for trams boss David Mackay after he quit, calling the project "hell on wheels".

Mr Mackay resigned with immediate effect from the chairmanship of council tram firm TIE, Lothian Buses and Transport Edinburgh Limited, the body to be created from the merger of the two companies.

Sources suggested he decided to go after concerns were raised about a "conflict of interest" because of predictions that Lothian Buses will end up subsidising the trams.

Bus union leaders, who oppose the merger plan, said Mr Mackay's departure was "a step in the right direction".

An industry insider added: "This is an opportunity for everyone to stand back, reassess the structure of TIE, TEL and Lothian Buses, which is flawed, and reflect on the way forward.

"The worst thing to do would be to stuff someone into these posts and carry on as before."

The insider suggested Mr Mackay had been unhappy about remarks made by council leader Jenny Dawe. Last week she called on tram bosses to come clean on the figures used to support the project because councillors felt they were "being asked to take a lot on the word of officers that they perhaps don't know very well".

The insider said: "That was code for 'We don't believe what we're being told'."

He added: "It was getting too hot in the kitchen. David Mackay is not someone who puts up with not getting his own way."

Rab Fraser, chairman of the Lothian Buses branch of trade union Unite, said: "We welcome this decision as a step in the right direction.

"We will continue to ask that TEL is disbanded. Once TIE has completed construction of the tram line, it should be handed over debt-free to Lothian Buses."

The city's transport leader Gordon Mackenzie said there was a "strong possibility" that separate chairmen would be appointed in the interim. But he defended the planned merger. He said: "The business case for combining Lothian Buses and the trams will be published in the next week or so.

"It's a very healthy case, with a significant prospect of profits from day one."