Councillors were not informed of tram cost rise before key vote
to believe that members will not be advised on these recent developments when council considers the report today.”
Jim Inch, director of corporate services at the time, told the inquiry he was sure the council leader would have been informed, but denied it was misleading to allow the report quoting the £508m figure to stand.
He said: “We were being advised by TIE not to react to this proposed price increase, because TIE felt confident that they would be able to again negotiate it away, and so to have put that information to elected members would have been misleading in itself.”
The inquiry also heard that former tram boss Willie Gallagher, who received a £41,000 bonus for seven months’ work, sat on the committee which decided rewards during his time in charge.
Mr Gallagher, who was both chairman and chief executive of TIE from June 2006 until November 2008, was a member of the remuneration committee which set bonuses for those involved in the project.
The inquiry was shown a code of practice stating that remuneration committees should consist entirely of non-executive directors.
Mr Inch agreed such a situationwas“clearlyadeparture from best practice”. In 2009, it was revealed Mr Gallagher, who had been on a £170,000-a-year salary, was receiving a £41,000 bonus for his work between April and November 2008, when he quit the project.
Mr Inch also agreed the fact Mr Gallagher was both chair and chief executive was also “clearly” not best practice.
The inquiry resumes today.