‘£200m spin-off’ from city’s tram network

A PROPOSED tram network linking Granton with the city centre could plough more than £200 million into the city’s economy, it was claimed today.

But although a consultants’ report revealed that the economic spin-off would more than pay for the entire cost of building the project, its authors refused to reveal a breakdown of how the cash would be generated.

Opposition councillors today claimed their refusal to release the document on confidentiality grounds exposed a shroud of secrecy surrounding the scheme.

A report - commissioned by development group Waterfront Edinburgh and prepared by consultants Andersen, Steer Davies Gleave and Mott MacDonald - suggested that the project’s 192m price tag could easily be recouped.

Steer Davies Gleave associate Neil Chadwick described the plans as "robust" and claimed the scheme would provide the Capital with at least two sources of "monetised economic benefits".

He said: "The first is people travelling on a fast, frequent and reliable system, which reduces travel time. That reduction can be converted into money. The second is that people will transfer from the car to the tram, reducing congestion and accidents and resulting in lower vehicle operating costs."

Mr Chadwick claimed confidentiality prevented the release of a detailed account of where the cash would be found.

Council transport leader Andrew Burns today said the economic spin-off would not only be felt in rejuvenated Granton, but also in Princes Street, Leith Walk, the West End and other areas that the tram scheme will service.

He added: "The report has shown that in terms of operating revenue it will self-fund and make a profit. It’s not guesswork. It’s sound economic modelling." Cllr Burns said that economists and transport experts who have viewed the full report claimed the spin-off findings were "conservative".

But opposition politicians raised questions about why the report had not been released to councillors.

Liberal Democrat transport spokesman Fred Mackintosh said: "The proposals for the tram network are being designed without public scrutiny.

"There needs to be openness and there isn’t openness when reports aren’t being published.

"We can’t have these decisions made by Labour councillors meeting in the back room."

But Cllr Burns stressed that extensive consultation on the project will be completed before the project is operational in 2009.

He said: "It’s at a very early stage. Everybody will have their chance to have an informed say into the scheme, its route and other details. The public will have more than ample opportunity to get involved."

The 192m tram system would link Granton with the city centre. Vehicles capable of carrying up to 250 passengers would make the ten-mile circular journey, with services running every six minutes.

The council will try to obtain the majority of the cost from the Scottish Executive.

The consultants’ report adds that the scheme could eventually be expanded to south Edinburgh and the western corridor.

Tory transport spokesman Allan Jackson said increased traffic in north Edinburgh since Ocean Terminal opened earlier this month revealed that trams were essential to cope with the 6500 new homes and at least 13,000 jobs set for the waterfront under the 1 billion Granton regeneration plan.

He added that the Scottish Executive should fund the tramway scheme, rather than relying on road tolls.

Cllr Jackson said: "The Scottish Executive is not prepared to put up the cash for it as the Government has done for English cities.

"Why should taxpayers in Scotland subsidise Manchester or any other city down south and be double-taxed for our trams?"