£144m for three miles of tram line

PLANS to spend £144million extending the Edinburgh tram line by three miles have been given the green light.

City of Edinburgh Council yesterday approved in principle the resurrection of the original route of the trams to Newhaven in the north of the city.

But the council has delayed a vote on commencing work after unions and bosses at the council’s Lothian Buses service raised financial concerns.

Leith was part of the original tram route but the tracks got no further than York Place in the city centre amid contractual disputes which saw its price tag rise to nearly £1billion, making it one of the most expensive public sector projects in Scotland.

The council wants to spend a further £144.7million for the three miles but has a £25million shortfall which it plans to fund via a £20million exceptional dividend from Lothian Buses and £5million from council reserves.

A delegation from Lothian Buses heckled from the City Chamber’s public gallery when it became clear coun- cillors were considering funding the trams with cash from the buses.

The vote of 44 in favour, with 11 Conservative councillors against, represents a further repositioning by the SNP, which has gone from opposing to backing the trams.

Council leader Andrew Burns, head of the city’s Labour group, said they are in a ‘lose-lose situation’ in the eyes of the public.

He added: ‘What we have attempted to do with the (Labour/SNP) coalition motion is to find the sensible middle ground – to keep the outline business case going, keep the project alive, to accept that taking the project to Newhaven is the right decision.

‘It’s almost a lose-lose situation, but we don’t want to repeat the mistakes of the past.’

Unite deputy Scottish secretary Mary Alexander said: ‘Lothian Buses’ profits should not be plundered to pay for the trams.

‘There is a real anger in the depots. If enacted, these proposals would signal the cut and gut of investment and jobs at Lothian Buses.’

Conservative councillor Jason Rose described the proposed extension as ‘ruinously expensive’.

The decision will be discussed again on December 10.

‘Don’t want to repeat mistakes’