Tram 'scrappage' report delayed 15 | 06 | 2011

EDINBURGH'S TRAM fiasco looks like rumbling on even longer. A decision was expected to be taken by Edinburgh City Council on June 30 on whether to scrap or continue with the ill-fated, multi-million pound project.

But now that decision looks likely to be delayed as the city council struggles to establish a rescue plan in time for the crisis meeting.

While initially it was expected the report would contain "robust" figures for either axing or continuing work on a shorter route, or even a plan to borrow an estimated £200 million that it could cost to complete the route, that now is believed to be not the case.

City of Edinburgh Council is run by a coalition of Liberal Democrats, who back the project, and the SNP, who have been opposed to it; so what chance is there of any decision ever being made?

It has faced calls to specify the true cost of either scrapping the project or completing it. More than £400 million has already been spent on laying tracks.

As the suspicions grow, and the doubts fester, the delay also coincides with news that half of the 70 staff at Transport Initiatives Edinburgh (Tie), the council-run firm set up to deliver the tram project, are set to be made redundant.

It also follows the departures of Tie chief executive Richard Jeffrey and director of communications Mandy Haeburn-Little, who are understood to have been paid nearly £300,000 between them.

"The bit they're having difficulty with is trying to borrow enough to finance the project because there's no way it would make enough money when complete to pay it back," John Carson, a tram critic and former head of maintenance at Network Rail.

Meanwhile, a council spokesman said: "The report will be brought back to council later this summer, by which time there will be sufficient certainty on price, scope and programme for councillors to make an informed decision on the future of the project."

Keep up-to-date with all the latest news by following us on twitter.com/scotcars

Craig James