Row erupts as MSP claims trams £200m over budget

Published on Wednesday 30 September 2009 10:05

A FURIOUS row erupted today after an MSP claimed Edinburgh's trams project was running two years late and £200 million over budget.

SNP Lothians MSP Shirley-Anne Somerville said she had got her information from people close to the project.

But council leader Jenny Dawe accused her of trying to foil the scheme and trams firm TIE insisted the project was on track.

Ms Somerville said the information she had received suggested the trams project was "effectively out of control".

She claimed the final cost of the trams could reach 750m and they may not be running until 2013.

The trams were originally due to be launched in July 2011, but the date has already been postponed to 2012.

Tram bosses have admitted they are likely to exceed the current 545m budget for the project, but say they cannot put a final price on it until disputes with contractors Bilfinger Berger are settled.

Last month, there was speculation the cost could end up close to 600m.

But today Ms Somerville said: "I am very concerned that a number of sources I have been speaking to close to the project are estimating large overruns with the largest being 750m as the worst case scenario.

"But even the best case scenario we are still looking at 650m.

"On the delivery date, we are looking at some people suggesting 2013, which is a two-year delay on the trams being up and running.

"I think the people have a right to know how much this project will cost and they will lose faith in the new management of TIE unless they get information."

Cllr Dawe dismissed Ms Somerville's claim as "purely scaremongering".

She said: "It's a lot of nonsense and unbelievably unhelpful when we are trying to deliver such a major project as close as possible to the sum of money we know we have available and we have a contractor in dispute over various things.

"She doesn't like the trams and is doing everything she can to foil the project. She is not going to."

TIE spokeswoman Mandy Haeburn-Little said:

"For Shirley Ann Somerville to be suggesting that there is some other information being held back is ridiculous and unhelpful. If Ms Somerville would like to name her sources then we would be very pleased to respond fully."