Council hopeful despite tram fallout

Officials at Edinburgh City Council have remained optimistic over the capital’s tram project, despite the ongoing fallout between project managers and contractors and calls for the auditor general to intervene.

Work on the Princes Street phase of the scheme was supposed to commence last month, but negotiations have since failed to break the deadlock over “unacceptable” demands from project consortium BSC.

However, council leader Jenny Dawe has said that the council “will not be held to ransom” by contractors, and that she was confident a resolution would be reached soon.

She said: "There is a great deal of work going on behind the scenes. There are ongoing discussions between Bilfinger Berger with Tie [Transport Initiatives Edinburgh, overseeing the project] and that continues. It is at a stage where there are a lot of legal people involved as the fine detail of the contract is looked at.

"But we are hopeful we will get a resolution to the current difficulties and that we will see the work that should have commenced in Princes Street last Saturday commencing in hopefully the not too distant future.”

She added: "Following the most recent discussions I had with David McKay of TIE, he was still hopeful it would be within their original funding package and that's certainly what we are aiming for."

Reports have suggested that original claims that £80 million was demanded by contractors to start work on the main thorough fare was in fact closer to £20 million.

However, two members of the Scottish Parliament have asked the auditor general to look into the controversy. Tory MSP David McLetchie and SNP MSP Shirley-Anne Somerville have called for an investigation into whether or not the project should continue.

Ms Somerville said: “No-one in Edinburgh believes it is either on time or on budget and all those opposition parties that voted for this project must be sorely regretting their decision.”

"If this project will not be completed for £500m let's find out how much it will cost and put a stop to these escalating bills one way or the other."

"If the final cost is escalating there will be many people looking for an early end to the pain and disruption caused across the city.”