Tram compensation: 'This at least shows that TIE is listening'

Published on Thursday 10 April 2008 10:21

IT is reassuring that TIE is alive to the fact that small businesses on the tram route, as widely predicted, are continuing to suffer losses as a result of the ongoing works.

Today's announcement of the broadening of the compensation scheme for those affected should be welcomed, even by those who might justifiably argue that it still does not go far enough.

While the predicted traffic chaos on Leith Walk and around Shandwick Place has not been has bad as was feared it is clear that very absence of traffic is damaging many businesses. The feedback from traders on the affected streets has been worrying, with a survey conducted by the Federation of Small Businesses claiming to show that two-thirds of businesses on Leith Walk have seen a "significant decrease" in the number of customers since work started there in August last year.

Yesterday the Evening News highlighted that businesses on Shandwick Place – where work only commenced in March – are experiencing similar problems with monitoring conducted by the council showing that footfall has fallen by almost 20 per cent with trade suffering accordingly.

And today we reveal that just over a week after work began in Constitution Street in Leith that a previously successful restaurant is considering closing its doors as its customers are unable to gain access by vehicle to the premises.

There has been much debate over the level of business support that has been made available to help traders most badly affected weather the storm. The maximum payment of 4000 agreed with TIE has been branded as inadequate by the FSB, which says that the average loss per business on Leith Walk since work began is in excess of 26,000.

TIE bosses have defended the scheme, saying few businesses have complained to them, but a concession in January to widen the scheme to businesses which opened after April 2006 was made. Today they extend the scheme further to include 200 traders not directly in the front-line but mainly on side streets. This makes sense. If customers are staying away from main thoroughfares like Leith Walk and Shandwick Place it is reasonable to expect them not to try and gain access to nearby streets.

The further expansion of the compensation scheme at least shows that TIE is listening and it is vital that they continue to do so. Small businesses are more vulnerable than most and rely on weekly takings not only to pay their employees but meet their overheads. While it could be argued that some on the tram route may benefit in the long term from increased footfall they cannot be allowed to suffer, or go under, in the interim due to circumstances which are not of their own making and beyond their control.