TIE admits end date for tram project is still unknown

Published on Wednesday 23 February 2011 13:53

THE people at the helm of the city's tram project have admitted to MSPs that they still don't know when it will be finished or how much it will cost.

Richard Jeffrey, chief executive of tram firm TIE, and Donald McGougan, the city council's finance director, were among those questioned by the Scottish Parliament's audit committee yesterday.

However, their evidence was only heard after MSPs put forward a motion to prevent the discussions being held in private.

Both men said it would not be until the outcome of mediation talks scheduled for next week that more would be known about the future direction of the project.

The peace talks between TIE and contractor Bilfinger Berger start on March 3 and are seen as the one remaining hope for resolving the long-running dispute between the two sides.

Asked when the trams would be up and running, Mr Jeffrey said: "It's like saying how long does it take to drive between Edinburgh and Glasgow. If you don't know what speed you're going to be driving, you don't know how long it'll take."

Pressed on a date of late 2013 given in an Audit Scotland report published earlier this month, he said: "That probably refers to part of the line, but the programme will be subject to mediation."

SNP Lothians MSP Shirley-Anne Somerville pressed the council bosses to explain how far a new projected 600 million budget was expected to take the trams.

Ms Somerville said: "Are you assuming that you can deliver just to St Andrew Square for that, or are we looking at more borrowing in the future?"

Mr McGougan said: "When we come out of mediation we would need to review the timescale and costs."

Mr McGougan said there was no connection between the 600m figure and the potential cost of getting the trams to St Andrew Square.

He added: "This was a contingency plan that the council determined eight months ago just to say that if we needed ten per cent more of the funding, how would we get another 55m if that was required."

He also said the council would "explore any avenue" for future funding, including approaching Transport Scotland or the Scottish Futures Trust for extra cash.

It also emerged that tram and council bosses had held a series of "ad hoc" meetings with Finance Secretary John Swinney during which the minister expressed concerns.

Mr McGougan said: "Mr Swinney has expressed concerns about the progress of the project. He challenged us on the tactics and strategy we've been delivering and to go to mediation, but I don't think there's been anything (said] on governance arrangements."

WHAT THEY TOLD AUDIT COMMITTEE

CHRIS MARSHALL

Transport Reporter

City council chief executive Sue Bruce: "Both the council and TIE are committed to making progress with this project.

"Mediation is absolutely critical for us to get right. The preparation has been huge going into this and that has included relationship building.

"This is not a good place to be for any of the parties (involved in the project] in terms of cost and overruns or for our collective reputations. I'm convinced that people are entering into this in a spirit of really trying to get a resolution."

Donald McGougan, the council's finance director: "The plan remains to build the tram from the airport to Newhaven. The first thing we're focused on coming out of mediation is to get to St Andrew Square, then we will be looking at other increments. But I would not want to say we have the resources to do that until we come out of mediation."

Richard Jeffrey, chief executive of TIE: "The balance of people who work for me have nomadic careers. Actually, what motivates them is being part of an infrastructure project that's going to be here for years to come.

"Are they motivated by their own job security? I don't think so."