Lack of tram cash sending traders off the rails

Published on Thursday 7 February 2008 09:23

Businesses need help now or face going bust, warns Graham Russell

EDINBURGH'S multi-million-pound tram scheme may be hailed as the transport gateway to the 21st century – but try telling that to cash-strapped traders in Leith Walk.

They have suffered months of agony while utility holes have been bored in the thoroughfare and they face more disruption when the tram lines are laid.

I have heard heartbreaking stories of long-established businesses suffering substantial a loss of trade and a consequent inability to pay rent, of owners having to dip into their savings to keep their business afloat and of regular customers going elsewhere because they can't cross the road.

It's worse for businesses trying to establish themselves but even well-known, long-stranding businesses like Vittoria Restaurant are suffering.

The owner, Tony Crolla, revealed earlier this week that he is currently losing turnover of around 10,000 a week.

To make matters worse, Mr Crolla will not be receiving any financial help from TIE's business support scheme.

The rates rebate scheme, which is supposed to offer a standard reduction of 20 per cent on businesses rates, is still not being applied to all businesses in Leith Walk.

In Vittoria's case, when and if he gets his rates reduction, Mr Crolla will only receive about 8 a day – which might help towards his milk bill.

The various business support schemes were trumpeted to provide "the right money at the right time in the right place".

Besides the minimal amount of money that has been paid out in rate reduction, since June, only 57,000 from TIE's business support budget of 2 million has been distributed to under-pressure traders.

TIE, to its credit, pays up quickly when it receives a trader's claim but too many traders either don't fully understand the schemes or have passed the application form on to managers located elsewhere.

Even charity shops are feeling the pinch. Some traders have even been forced to hire alternative premises to store material as delivery vans can't get near their shops.

The Federation of Small Businesses recently commissioned an independent, survey of every business in Leith Walk. The results would bring tears to your eyes.

Sadly TIE has not yet publicly acknowledged the cries of the small shopkeeper. Its publicity constantly refers to better times when the trams arrive. However, there is no certainty that the businesses will still be there.

If the present phase of the work is causing this level of financial hardship, what will happen when the workers come along to lay the track – we have been reliably told that we have not seen anything yet.

This is a cry for help. Is there anybody out there listening and, if not, why not?

&#149 Graham Russell is the chairman of the Edinburgh Federation of Small Businesses