Trams boss denies massaging figures

THE man in charge of finances for the Edinburgh tram project has been forced to deny ‘massaging’ figures in the scheme.

Former finance director of Transport Initiatives Edinburgh (TIE) Stewart McGarrity was presented with evidence over the project budget. At the inquiry into the £1bil- lion scheme, counsel Ross McClelland asked him to focus on a decision by council-owned TIE to state a percentage of confidence they had in the scheme being delivered to budget.

The inquiry heard how when the council signed off on the trams in 2007 they were told by TIE the probability was 90 per cent. But thereafter it dropped to 80 per cent – a significant fall for a project of its size, which eventually arrived three years late after a huge overspend. It was put to Mr McGarrity that TIE was trying to secure a reduction in a budget column called ‘risk allowance’ – and in turn reduce the overall budget.

But he denied this, saying: ‘I know that that’s an easy conclusion to come to but we were not at any time trying to massage risk allowance to a budget target.’

Mr McGarrity also admitted that bonuses were awarded based on how low employees could get the anticipated cost of the trams. He admitted that giving such incentives was wrong in retrospect.

But he claimed he could not recall why he himself was awarded his bonus.

Inquiry chairman Lord Hardie asked: ‘Surely the whole point of a bonus is that you’re aware of the incentive and you have a sense of achievement?’

The inquiry continues.