It's the end of the line for 1B as tram link officially shelved

Published on Friday 24 April 2009 09:52

THE troubled Granton to Roseburn tram line was today officially shelved, with contractors picking up £3.2 million in compensation for the deal being ditched.

Council chiefs were set to formally announce that tram line 1B was being "postponed" as a result of the property market downturn.

The city's Labour party, however, today warned that a recession was precisely the time to be building tram lines to regeneration areas such as the Waterfront.

Tram company TIE last year secured a fixed price of 87 million for the building of line 1B, but this was only guaranteed until the end of this month.

The one winner from this deal falling through is tram construction consortium BSC, who will now pick up a 3.2m "contingency payment" as compensation for city leaders not taking up the contract.

Council leader Jenny Dawe, said: "It is disappointing that in the current recession monies are not available to fund Line 1B.

"We will revisit this as soon as economic conditions improve.

"Experience elsewhere also suggests that, once operating, trams prove immensely popular with residents and businesses and create real demand for expansion.

"I am confident that this route will be the first of a world-class integrated public transport network for Edinburgh, including Line 1B and Line 3 to Little France."

Line 1B has been doomed for months – despite official denials – as transport chiefs faced up to a mounting cash crisis for the airport to Newhaven route.

Any attempt to resurrect the project is unlikely to happen for a number of years now and the price tag is likely to be at least double the 87m currently on offer.

Business and education leaders in North Edinburgh today echoed Labour's concerns regarding Line 1B.

Labour transport spokesman Councillor Ian Perry said: "We take the opposite view. This is exactly the right time to making these sorts of investments.

"This type of investment is not only crucial for the regeneration of North Edinburgh but will also stimulate demand in the Edinburgh's economy."

A spokesman for National Grid, which owns the Forthquarter development at Granton, said: "The decision to delay line 1B is disappointing if not unexpected.

"However it remains the case that the success of Edinburgh Waterfront has increased demand for a regular and reliable public transport service."

Dr Ray Harris, Principal of Edinburgh's Telford College, added: "It will be very disappointing if this work has been delayed or cancelled."

The scrapping of the Granton to Roseburn spur will leave the city's tram line a shadow of what was originally planned, extensions to Newbridge and Edinburgh's southside have all been scrapped over the years to try and reduce costs.

David Mackay, chairman of TIE, said: "The global economic recession has not spared Edinburgh and as such I believe that it is prudent to postpone Line 1B until such times that the climate for development is far more favourable."