Wheeler pays price over trams woes

Published on Friday 15 May 2009 01:24

EDINBURGH City Council's transport chief was last night forced out of his job by his own party following widespread concern of his handling of the capital's troubled tram project.

A back-bench rebellion is thought to have toppled Phil Wheeler, who has become the third high-profile figure involved with the trams project to leave their post in a matter of months.

He was ousted by just one vote by fellow Liberal Democrat councillors in an apparent snub to the authority of council leader Jenny Dawe, one of Mr Wheeler's strongest allies.

Paul Edie, the secretary of the Lib Dem group, last night described the changes as a "minor reshuffle".

However, Mr Wheeler was facing claims of being "rewarded for failure" from sources within the group after the Lib Dem group narrowly voted – again by just one vote – in favour of him swapping jobs with his successor, finance leader Gordon Mackenzie.

One source said: "If Phil Wheeler has lost control of the trams project and we're questioning his record in the post, what on earth are we doing putting him in charge of the city's finances?"

Mr Wheeler was widely criticised for staying largely on the sidelines during the fallout of a disastrous attempt to close part of Princes Street last October.

Within weeks, the project had seen the resignation of Neil Renilson, the Lothian Buses boss expected to oversee the integration of trams with buses in the city, and Willie Gallagher, the chief executive of the trams company.

It is thought Mr Mackenzie had to take a prominent role in the talks over how to resolve the damaging dispute with the German-led consortium handed the lucrative contract to construct the tram network.

Mr Mackenzie, who already serves on the board of the council's tram firm TIE, was lined up for the job after impressing colleagues with his efforts to turn around the council's financial problems over the past two years, and handle budget negotiations with his party's coalition partners, the SNP.

Mr Wheeler fended off a challenge for the finance portfolio from Tim McKay, with his backers claiming that his long track record in banking made him a more suitable candidate.

Education leader Marilyne MacLaren, who had been reportedly under threat in the run-up to last night's Lib Dem showdown, survived unscathed.

A group insider said: "There were a lot of concerns about how removing Phil Wheeler would look when there have been so many problems with the tram project, most of which he did not have much influence over.

"However, much greater leadership and control on the trams needs to come from the council over the next couple of years and there is little doubt Gordon is a far more suitable candidate."

Both Mr Wheeler and Mr Mackenzie declined to be interviewed by The Scotsman last night. Both of their positions still need to be formally approved by the council.

However, in a statement, Mr Wheeler said: "I wish Gordon well in his new post and in all the challenges he faces.

"I've really enjoyed chairing the transport committee of the council and would like to thank the staff of the council and partner organisations that I've worked with over the last two years.

"I'm looking forward immensely to the challenges and opportunities my new role will bring."

Mr Mackenzie added: "I'd like to thank Phil for his tireless work as chair of transport and wish him well in his new role."

Mr Mackenzie faces a multitude of problems over the trams scheme amid claims that it is running up to a year behind schedule and millions of pounds over budget.

SNP group leader Steve Cardownie, an arch-critic of the trams scheme, said: "This is obviously entirely a matter for the Lib Dems.

"We work very closely with them, but it is up to them to decide on who they choose for these positions."

The laying of the first tram rails has already had to be put back from January of this year while a planned embargo on work during Edinburgh's summer festivals has had to be scrapped in an attempt to curb disruption to the festive shopping season in November and December.