Bruce denies tram payout was ‘back of fag packet’

Former Edinburgh city council chief executive Dame Sue Bruce has denied the sum of money paid to contractors to get the troubled tram project back on track was a “fag packet” figure.

Giving evidence to the tram inquiry, she insisted the £362.5 million agreed at mediation talks for the off-street works between the airport and Haymarket was based on the history of the project and the work still to be done – despite the absence of any document breaking down the costs.

Dame Sue led the council’s team in the talks with construction consortium Bilfinger Berger Siemens at the Mar Hall Hotel in Erskine in March 2011, aimed at resolving a longrunning dispute which had seen the tram works grind to a halt in Princes Street.

She told the inquiry: “The city was dug up, there were holes all over the place, there was no work being done, there was a lot fo media commentary, the city was in a bit of a state and nobody seemed to know where this was going.”

After a series of offers and counter-offers the two sides at the Mar Hall talks agreed a new deal which included the £362.5m payment for offstreet works.

Inquiry counsel Jonathan Lake QC said there was no documentation showing how the sum had been reached.