Line 1b of the Edinburgh Tram Project between Granton and Roseburn has been officially postponed by the City of Edinburgh Council because of the property market downturn. However, the postponement comes at a cost as the BSC consortium receives a payment of £3.2 million as compensation for not going ahead.
There was a fixed price of £87 million to construct line 1b, however this was only valid until the end of April and so a decision had to be reached by the Council whether to go ahead with the construction before this expired. The recession has been blamed for the decision, although the Labour Party in Edinburgh have said that is just why the line should be built.
Cllr Jenny Dawe, Council leader, said: “It is disappointing that in the current recession monies are not available to fund Line 1B. We will revisit this as soon as economic conditions improve. Experience elsewhere also suggests that, once operating, trams prove immensely popular with residents and businesses and create real demand for expansion. I am confident that this route will be the first of a world-class integrated public transport network for Edinburgh, including Line 1B and Line 3 to Little France."
David Mackay, Chairman of tie, added: “The global economic recession has not spared Edinburgh and as such I believe that it is prudent to postpone Line 1B until such times that the climate for development is far more favourable."
Although the official word is that the line has only been postponed, the likelihood is that this postponement will be long term as the recession is expected to be long lasting. In addition the £87 million fee for construction is likely to much higher in future years.
As mentioned earlier the Labour Party disagreed with the decision, and they were joined by business leaders in the area the line would have been built. Cllr Ian Perry, Labour transport spokesman, said: “We take the opposite view. This is exactly the right time to making these sorts of investments. This type of investment is not only crucial for the regeneration of North Edinburgh but will also stimulate demand in the Edinburgh's economy."
Source: The Scotsman