New trams firm will have ‘no drive for efficiency’
Councillors will tomorrow debate plans for the council to take full financial responsibility for running the tram line.
Under the proposals, a new holding company – likely to be known as Lothian Transport Ltd (TopCo) – will be put in place to hold the council’s 91 per cent stake in Lothian Buses, while a tram company (Tramco) will be formed and wholly owned by the council.
Advertisement
Hide AdAdvertisement
Hide AdBut a report by officials says that the arrangement would give Lothian Buses no financial incentive to run a profitable, efficient service.