9am Briefing: German firm could be booted off trams contract over dispute

THE boss of Edinburgh's tram project has admitted there is "no sign of a breakthrough" in talks with contractor Bilfinger Berger, as reports today suggested the German firm could be booted off the contract.

Writing to businesses along the route of the works, Richard Jeffrey, chief executive of tram firm TIE, said it was "disappointing to say the least" that on-street works had not re-started after Christmas.

There has been growing speculation about Bilfinger Berger's part in the project, with reports today suggesting that bosses could be ready to axe the firm.

Man saved from canal

A MAN who is thought to have fallen into the Union Canal has been rescued by a member of the public.

The incident took place at Edinburgh's Dorset Place just before 7am today.

A spokeswoman for the fire service said a resident had witnessed the man - thought to be around 19-years-old - jumping into the canal, and helped him to safety.

The man was taken to the Royal Infirmary suffering from slight hypothermia.

A spokesman for the ambulance service confirmed that the man had been drinking.

Water rescue teams and four fire appliances from Tollcross, Sighthill and Marionville attended the scene, but the man was already out of the water on their arrival.

Did you help save the man who fell into the water? If so get in touch with us on 0131 6208734 or email [email protected]

McGregor set to return after attack

RANGERS goalkeeper Allan McGregor is expected to take his place in the team for Sunday's Old Firm derby despite being injured in a late-night incident in Glasgow at the weekend.

The Ibrox star, who is from Edinburgh, received medical treatment following a disturbance at a taxi rank at the weekend.

McGregor is said to have suffered a back injury after being attacked by up to three men in Bath Street.

He had reportedly been attending a Celtic player's birthday party at a nightclub when he was hurt.

Right-wing protesters warned by pub staff

STAFF at a Royal Mile pub today told how they asked right-wing protesters to stop hanging up flags because they did not want to be associated with their cause.

Around 50 members of the Scottish Defence League visited Jenny Ha's at the foot of the street on Saturday as they prepared for their city centre demonstration.

But police had to lock them in after anti-fascist groups tried to gain entry. SDL members hung up flags and banners, smoked and bought drinks as officers maintained the cordon outside. Staff were forced to ask them to stop.

RBS chief to decline bonus

ROYAL Bank of Scotland boss Stephen Hester is set to waive his annual bonus payment of up to 1.6m.

The chief executive is understood to be gearing up to decline a payout for 2009 after coming under pressure in the face of predicted hefty losses for the bank.

RBS, which is 84 per cent taxpayer owned after a number of bailouts, is expected to report a shortfall of around 5.3 billion when it announces its results on Thursday.