Tram chiefs told to roll out costs for troubled project

Published on Friday 25 June 2010 10:28

TRAM bosses have been told to provide full updated figures on all costs relating to the troubled project.

Councillors ordered the details in a stormy full council meeting yesterday amid growing fears about the price and scale of the project.

Council chiefs have admitted that 347.8 million has already been spent on the project – and say that the scheme could go well beyond its original 545m budget.

And the Evening News revealed earlier this week that talks are taking place on a "mature divorce" from the contract with Bilfinger Berger that would see it only complete the work from the airport to York Place.

Councillor Gordon Mackenzie, the city's transport leader, pledged to provide full costings to the council once a deal is reached with the German firm – and said that it could yet be kicked off the job before carrying out more work.

He said: "There will be a report back to council by September 16 detailing all the options and costs, and with an update on the business case.

"I believe that the discussions with the contractor will have led to one of two outcomes by then; either we will have a deal or we will be going down the route of termination."

Cllr Mackenzie insisted that he still believed the line could continue to Newhaven – even if any deal with Bilfinger means that the first phase only runs to York Place.

"When we have clarity on numbers we will have that debate," he said. "My hope is that we will be able to take forward procurement for the next stage down Leith Walk and out to Newhaven in parallel to any solution with Bilfinger Berger."

At a meeting of the full council, all political groups apart from the SNP agreed to support TIE in its efforts to "protect the public purse" and initiate "remedial breach" proceedings if necessary. They also called for a refreshed business case on the tram, detailing "capital and revenue implications" of all the options currently being investigated.

The SNP stopped short of calling for a referendum on the tram – but is not ruling out demanding it once cost implications are available.

Councillor Steve Cardownie, deputy council leader and leader of the SNP group on the council, said the authority should apologise to the people of Edinburgh for the "extremely serious consequences of embarking on this ill-conceived project".

He said: "If we pursue this to Newhaven it could cost twice as much. It could end up being 1 billion. But anything above the 545m has to be met by this council. That could take money away from other things. It is a travesty the way the people of Leith have been treated but it was entirely predictable because there was never enough money for this."

Richard Jeffrey, chief executive of Edinburgh Trams, said: "We are very grateful for the strength of support shown today by members of the council.

"Protecting the public purse and ensuring that we deliver the tram has been our priority throughout."