Councillors support extending tram line to Newhaven

Published 19th Nov 2015

Edinburgh Council has voted overwhelmingly in favour of extending the city's tram line to Leith and Newhaven - but only in principle.

There is to be more detailed work into exactly how the extra stretch will be paid for.

A proposal to use money from Lothian Buses has been delayed amid concerns it could impact on plans to buy new vehicles and lead to rising fares.

The trams were due to go to Newhaven in the first stage of work but the route was stopped short at York Place due to soaring costs and delays, although much of the preparatory work was carried out.

A vote on whether to start the work was today (Thurs) delayed amid financial concerns brought by unions and bosses at the council's flagship Lothian Buses service.

The tram project, which is the subject of a public inquiry, was truncated to the city centre amid contractual disputes which saw its price tag rise to nearly ÂŁ1 billion - making it one of the most expensive public-sector projects in Scotland.

The council now wants to spend a further ÂŁ144.7m but it is ÂŁ25m short - so it has asked for a ÂŁ20m "extraordinary dividend" from Lothian Buses to add to ÂŁ5 million council reserves to begin early work.

There were heckles from the public gallery, which included a delegation from Lothian Buses, when it became clear councillors were considering funding the trams with cash from the buses.

Councillors backed a motion which approves in principle the route to Newhaven, with a late amendment deferring the commencement of preparatory work until December 10.

The motion notes that Lothian Buses - which has frequently been named the UK's best bus service - is likely to finalise its 2017/19 business plan in spring 2016.

The council has now instructed the chief executive to write to Lothian Buses to request details of "any impacts the extraordinary dividend would make on their future transport strategy, fleet modernisation plans, the likelihood of future fare increases, loss of other transport initiatives and the confidence or otherwise of their ability to ensure the company can continue to meet its liabilities".

The vote of 44 in favour, with 11 Conservative councillors against, represents a further repositioning by the SNP, who have gone from steadfast opponents to cautious advocates of the trams.