Extra trams cash 'can help city ride the credit crunch'

Published on Wednesday 14 January 2009 09:19

INDEPENDENT Lothians MSP Margo MacDonald today suggested extra government cash for Edinburgh's trams could be one way of helping the Capital through the current economic crisis.

She said she was ready to support the SNP's budget – expected to clear its first hurdle in the Scottish Parliament today – if she got a guarantee of "flexibility" in the Scottish Government's financial support for Edinburgh as it battles against the downturn.

Finance Secretary John Swinney is already proposing an additional 3.5m funding for the extra costs the city faces as the Capital.

But Ms MacDonald, who won the promise of the Capital City Supplement in return for her support for last year's budget, said she reserved the right to go back to Mr Swinney for more help if the city's economic situation got worse.

She suggested one way of investing any further cash could be to ensure phase 1b of the trams project – linking Haymarket to Granton – went ahead. The line is currently in doubt because of a lack of funding.

Ms MacDonald has welcomed the proposed 3.5m supplement as "better than expected" in the current economic climate.

She said: "I appreciate they are up against it. That's why I have not asked for an extra 10m or whatever. But if we need extra help, I hope we would get it in money and grants or in kind. My vote will be riding on that."

She said Edinburgh could face particular problems because of the number of financial sector jobs.

The SNP opposed the tram scheme and has insisted there will be "not a penny more" of government cash for the project beyond the 500m support voted for by parliament.

But Ms MacDonald said: "It might be a sensible use of any extra money would be to make sure the loop is completed. It would keep people in work, keep the economy ticking over.

"We have had the initial upheaval and pain and disruption, so at a time when economic activity in the city will be reduced and we are desperately looking for ways in which we can get people back to work it might make sense to do the whole thing now."

MSPs were voting this afternoon on the first stage of the SNP budget, approving the package in principle.

Labour was set to vote in favour, allowing it to pass with ease.

But a spokesman stressed the party was not committed to supporting the package in the final vote at the end of the month.

He said: "We are looking for significant changes from the SNP to respond to the economic challenges we face. If when we get to the final stage, in our view the SNP has not met those challenges and is presenting a budget that will damage jobs and services in Scotland we will vote against it."

A government spokesman said the budget had been drafted specifically to respond to the economic crisis.