MORE DETAIL NEEDED ON HOW TO PAY AND HOW TO MANAGE
Councillors today voted to postpone a final decision on the Newhaven tram extension for another 18 months.
The delay will allow time for further scrutiny of the business case, particularly in the light of Lothian Buses’ financial plans for the period 2017–19 which are due to be completed in Spring next year.
Another report containing recommendations on how to proceed will be brought before the Council in Spring/Summer 2017.
You can read all the paperwork which informed today’s vote at the foot of this page.
Stage 1
Between now and 2017, 'momentum will be maintained' by spending £3.25 million on ‘Stage 1’ preparations:
- establishing project governance and setting up a project team
- development a financing solution including discussions with potential lenders
- partial risk analysis and apportionment
- stakeholder engagement and review of third-party agreements
- review of Phase 1 contract documentation including technical and prior approvals
- site investigation works
- starting Leith Walk Phase 4 Footway enabling works
- preliminary draft of main contract Invitation to Tender (ITT) including works information
- partial completion of pre-qualification of contractors for main tramworks and residual enabling works
- complete designs and specifications for Leith Walk Footway Phase 5 enabling works.
At the end of Stage 1, project financials will be further refined to take account of the new Government guidance on local authority borrowing, taxation advice and any revision in assumptions, particularly patronage and capital costs.
Another important element of today's report was its recommendation that the tram project be merged with the Leith Programme.
Debate
Council Leader Andrew Burns (Lab.) described the move as ‘the correct, careful, considered decision for the Council with the future of the city in mind’.
Cllr Rose (Con.) described it as ‘yet another fudge from an Administration which is addicted to the stuff’. He and fellow Tories pressed instead for a referendum on the trams to run in parallel with the Holyrood election next year. He stressed the damage to Edinburgh that would be caused by uncertainty, and cast doubt on the Council’s ability to manage such a large infrastructural project. This point was endorsed by Cllr Mowat (Con.), who was unsure already overstretched Council officers would be able to cope with the workload.
Cllr McVey (SNP) stressed his party’s ‘holistic’ commitment to all transport options in the city, while colleague (and Coalition Finance Director) Cllr Rankin said this approach was a prudent one. It would, he said, be a vote to keep the door open for trams whilst avoiding undue financial risks at a time when the Council was undergoing enormous budget-related restructuring.
Cllr Aldridge (Lib-Dem) emphasised the positive effect of trams on building new homes, economic development, attracting new businesses and cutting congestion. Voting to keep them on track was, he said, councillors’ duty towards future generations, however electorally unpopular it might be in the short term.
Cllr Burns concluded with a defence of the Council’s record on delivering large infrastructural projects on time and within budget. The next local-authority election in 2017 would, he argued, effectively give councillors a mandate on whether or not to proceed.
You can follow the entire debate on the webcast available here.
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Paul Dalrymple Good. A ton of building work going on in and around the Walk already.