Trams 'could be scrapped within weeks'

Published on Saturday 14 May 2011 13:07

THE senior official in charge of Edinburgh's £545 million tram project has admitted it may be scrapped within weeks amid huge doubts over funding.

Leaked correspondence from the city council's chief executive, Sue Bruce, states that the tram network will not be "financially viable" if it does not run to St Andrew Square in the heart of the city centre.

Bruce says "mediation" talks with contractors over how to deliver the project will be brought to a head by the end of next month to allow a final decision to be made. She moots the complete cancellation of a project that has already spent 440m on laying tracks and related infrastructure.

Bruce's e-mail to "key stakeholders" was sent last week in response to widespread criticism that Princes Street would be closed to traffic for ten months for repairs to the road surface surrounding already installed tram lines - despite uncertainty over whether trams would ever run on the famous thoroughfare.

The cost of building a line from the airport to the Haymarket area alone may cost up to 600m - 100m more than the Scottish Government has awarded the project - with the council having to borrow most of the shortfall. Taking the route on to St Andrew Square could cost a further 100m, according to some estimates.

In an attempt to reassure business leaders, Bruce, who took up her post five months ago, says that the Princes Street repairs will be shelved if the entire project is scrapped.

She adds: "The purpose of the mediation is to deliver the tram at least as far as to St Andrew Square. The service would not be financially viable if it were not to reach St Andrew Square. In the summer, a report will be presented to full council, when the arrangements for delivery of the tram will be considered.

"If, and I emphasise if, the council should decide not to go ahead with the project, then the work on Princes Street would not go ahead as proposed. The work to repair the surface would still be required, but in a different manner."

SNP councillor and deputy council leader Steve Cardownie, whose party wants the project scrapped, said: "The council cannot now presuppose the project is definitely going ahead and Sue Bruce is right to state that.

"Two very stark options will be brought forward to the council in June but I strongly suspect that the figure for cancellation will be higher than the figure for building a route to St Andrew Square."

Liz McAreavey, chief executive of business group Essential Edinburgh, said: "We welcome the clarification made by Sue Bruce that this work will only go ahead if the tram route is to run all the way to St Andrew Square. City centre businesses are entitled to feel that they must have assurances on long-term economic benefit.

"Like others, we have a number of concerns around the impact of this latest work. Until we gain a clearer understanding, I would strongly suggest there is a real need to refrain from creating such a negative perspective that it discourages trade."

A survey by the Federation of Small Businesses in the capital found that 41 per cent of members believe the whole project is likely to be cancelled.

More than 90 per cent said they did not believe that the full first phase of the tram, due to link the airport with the city's waterfront, would ever be built. The poll also found that 83 per cent of small businesses in the city believe the tram would have little or no impact on the city's economy.

Michael Dixon, chair of the Edinburgh branch of the federation, said: "Our members were shocked that the tram announcement on Wednesday gave no commitment on where the trams will run and when the work will be completed.

"Businesses need to be able to plan in order to be successful and help the local economy grow out of the economic downturn. We are calling for Transport Initiatives Edinburgh to commit to an achievable route and a timetable as soon as possible, and to look at how they will be compensating businesses affected by the overrunning works."