Trams price rise was not passed on

Former council chief executive Tom Aitchison has admitted he did not tell councillors about a new price increase for the tram scheme on the day they gave the go-ahead for signing the contract.

Construction company Bilfinger Berger had notified the council’s tram firm TIE of the increase from £508 million to £512m the day before, but Mr Aitchison said nothing had been agreed and so the council meeting on 1 May, 2008 was not informed. Councillors voted to note the “final price” of £508m and authorise Mr Aitchison to sign the contract.

Mr Aitchison said the price rise had come through a matter of hours before the meeting. “TIE and their advisers and the council were urgently trying to find out was it a valid claim? Could it be accepted in whole or in part? It was judged inappropriate to set hares running if there was perhaps a possibility of any further increase not being approved.”

Mr Aitchison said he had told council leader Jenny Dawe about the price rise.