Transport funding: 'Trams levy on bus fares is a ludicrous idea'

Published on Tuesday 26 August 2008 09:09

THE suggestion by a council "think tank" that a trams levy be put on bus fares is a ludicrous suggestion that deserves to be kicked into the long grass at the earliest opportunity.

It is especially insensitive at a time when Lothian Buses is struggling due to the increased cost of fuel but has resisted raising fares for the second time in a year.

While it is possible to have some sympathy with the council that it still faces a shortfall of some 30 million over its plans to complete a spur line from Roseburn to Granton as well as the main Leith-Airport link, the suggestion that bus fares should rise to pay for it is surely even at this stage clutching at straws.

Certainly tram chiefs are up against a deadline and the clock is ticking. They have an option of a fixed price of 87m for the Granton spur, but only if they give the go-ahead by next July. And while it is almost certain that if cannot commit by this stage the opportunity may be lost for a considerable time the economic realties of the situation may have to be faced.

Much of the shortfall was to have been made up by developer contributions and the Evening News has always supported the principle that those set to benefit most from the project should pay a share. Evidence from other tram cities suggests that property prices in areas served by trams rise by around 15 per cent.

But the reality to date is that money has been coming in at a trickle rather than a flood. Less than 2.5m has been pledged for those building near the main line and a paltry 300,000 so far agreed with those who could benefit from a Granton spur. In this respect the council has been dealt a bad hand which it could not have foreseen.

With the country in the midst of an economic slump development has almost ground to a standstill and there appears to be little confidence that between now and next July more money will flow in from this source as cautious builders sit it out waiting for signs of an upturn.

Last week the council revealed that Forth Ports, which is planning one of the city's biggest ever regeneration projects, will be asked to pay around 29m to the scheme. But as the construction timescale is over the next 20 to 30 years it can be expected to contribute little in the short term.

TIE remains of the opinion that the development of the spur is crucial to the overall business case for trams. But if the council wishes to push ahead it must find other ways of raising the money itself or approach the government. Given other priorities and the death toll on the A9, the chances of more central funds are remote to say the least.

But they certainly should not be seeking to raise additional cash by picking the pockets of innocent bus passengers.