Ministers urged to intervene

Andrew Burns, who leads the Labour group on Edinburgh city council, said it had been a “fundamental error” to remove Transport Scotland from the Tram Project Board in 2007, and claimed the decision had seriously weakened the management of the ill-fated project.

He said: “Transport Scotland [TS] are supposed to be the delivery agent of major transport infrastructure projects for the government of Scotland.

“We can’t turn the clock back but the SNP government should be big enough to admit a mistake was made four years ago and get officials from TS involved.”

The Scottish Government is putting up £500 million towards the paying for the trams – still the bulk of the costs, even after the overruns.

Mr Burns said: “It’s important we get the right solution for the city of Edinburgh.

“Bringing Transport Scotland back in would be a positive move and there should also be an end to unnamed sources claiming that money for the project could also be withheld. That sort of talk helps no-one.”

A report released earlier this year by Auditor General Robert Black recommended that Transport Scotland take a greater role in the oversight of the trams project.

Labour MSP Hugh Henry, convener of Holyrood’s public audit committee, also raised questions over the role of Transport Scotland.

“We have the organisation which is the main funder, Transport Scotland, reduced to a passive role merely to sign cheques to the organisation that is delivering the project but without asking any detailed questions, without proceeding any detailed reports,” he said.

“We don’t seem to have anyone either willing or able to take responsibility for such a massive project and potential overruns.”