Green light for Princes Street but tram dispute rumbles on

TRAM bosses are set to hand the last remaining piece of Princes Street over to contractors, despite an £80 million dispute with a German construction firm threatening to rumble on for weeks.

The westbound lane had been kept clear during the first week of the closure, but transport chiefs are happy with the traffic diversions and are now set to allow enabling works to begin.

Despite the closure, retailers have reported better than expected sales, and 13,000 people this week visited a model tram outside Jenners.

Work to lay tram tracks came to a halt due to the dispute with Bilfinger Berger, and sources say a resolution remains some way off.

TIE's chairman David Mackay, a former chief executive of John Menzies, has said he is confident the deadlock can be ended next week and that the contractor will get to work in Princes Street. He added that he expects total project costs to remain within the 545m available costs.

But Phil Wheeler, the city's transport convener, yesterday moved a tram committee meeting with fellow councillors from March 9 to March 30, saying there was no point having a meeting when discussions with Bilfinger remained "half-baked".

He also described a letter from Transport Minister Stewart Stevenson reaffirming no more money was available for the project as "not particularly helpful".

City council leader Jenny Dawe has written to the minister in response. She said: "TIE are actively working to resolve the dispute and we will not be held to ransom by Bilfinger Berger or, for that matter, anyone else. We very much recognise that the Scottish Government is providing 500m for trams in Edinburgh and that no further funds can be made available."

Mr Mackay said he had been pleased with the response from retailers on Princes Street, and added: "I visited two major retailers on Princes Street this week on my regular tour of the tram works. Their feedback was very positive. They are reaping the benefits of all Princes Street pedestrians being on one path."

Data collected last weekend showed the number of people visiting shops on Princes Street had not been affected by the streets' closure – on George Street, footfall counters recorded a 40 per cent rise in visitors, and a 17 per cent increase in St Andrew Square

Yesterday, the Evening News revealed tram bosses have fought and won three separate disputes with Bilfinger Berger.

On one occasion the company demanded 1m for a piece of work and walked away with just 40,000.

Referring to the current dispute, a TIE source claimed the firm was "chancing it" and attempting to "gouge" money out of the project.

A council spokeswoman said: "We are hopeful that the westbound lane of Princes Street will be handed over to the contractor for tram works at the beginning of next week."

• www.edinburghtrams.com

• www.edinburgh.gov.uk