Trams 'cost traders thousands'

Published on Monday 4 February 2008 09:28

TRADERS on Leith Walk today claimed they are losing tens of thousands of pounds because of tram roadworks.

A new survey by the Federation of Small Businesses has revealed two-thirds of businesses on Leith Walk have seen a "significant decrease" in the number of customers since work started in August last year.

It also says that 56.9 per cent of businesses surveyed have seen their turnover drop significantly.

One businessman claims his two restaurants on Leith Walk are losing 10,000 a week.

A range of support schemes are available to help traders through the disruption, including up to 4000 compensation for the worst-hit from tram firm Tie.

But the FSB survey claims the average loss per business since the work started is now 26,333.

Tie bosses today defended the compensation scheme, saying only five businesses had been in touch to complain.

Graham Russell, chairman of the FSB Edinburgh branch, said the survey was proof the business support set-up is not working.

He said: "This survey has shown there is clear evidence of extreme hardship and the current compensation scheme is not designed to cope with this.

"I think we need to go back and take a serious look at what support is available for businesses, but we need to move fast as these people are hurting now and they still need to get through the next phases of the project as well.

"Remember this is just Leith Walk and the work has still to properly extend into other parts of the city."

Tony Crolla, owner of Vittoria's and La Favorita restaurants on the east side of Leith Walk, said his businesses were losing around 10,000 a week.

He said: "It has been a bit of a nightmare and the street has become a bit of a no-go area.

"We are taking a hit but because we are a well established business, we can just about manage. If I was a new-start then I think it would be particularly difficult.

"I just hope all the benefits we are being promised from the trams make up for these losses."

Tie executive chairman Willie Gallagher said: "We have invested a significant amount of time and money to ensure that we communicate with all involved well before any work starts and have regular face-to-face contact throughout the work.

"Tie has worked hard with the City of Edinburgh Council and the Chamber of Commerce to put in place a small business support scheme, which we administer.

"However, the best outcome for all will be for the work to be completed as quickly as possible so that the long-term benefits can be realised."

All businesses affected by the tram roadworks are eligible for an average 20 per cent reduction in their business rates.

Councillor Phil Wheeler, the city's transport leader, said: "We anticipated tram works would cause a certain amount of disruption, which is why we worked with business representatives to establish a support scheme.

"However, I truly believe that this short-term pain will bring sustained long-term benefit."

The FSB survey sampled 58 businesses on Leith Walk over the past month.