City in talks to keep tram on track
NOTTINGHAM city council is trying to broker a deal by the middle of next month to keep tram extension funding in place.
County council leader Kay Cutts has said her authority will pull the plug on a £28m contribution agreed by the former Labour leadership.
She said the Tory council would only invest in the scheme if the route was diverted from Beeston town centre and Chilwell and the cost was reduced.
But the city council still hopes it can persuade the county that the funding would be a worthwhile investment, bringing multi-million-pound regeneration.
If it fails to reach an agreement, the city would be forced to pick up the £28m tab through borrowing.
With interest payments, this would leave it with an extra £53m bill over the life of the project, which runs to 2033.
It is possible some of this could be met by contingencies.
However, it would still leave the city with tough decisions over how it could find up to an extra £2m a year in its budget – either from efficiencies, service cuts or increases in council tax or business rates.
Most of the city's existing £244m contribution over the life of the scheme is planned to be met through the workplace parking levy.
NET director Pat Armstrong said: "The most important thing is we want to continue working in partnership [with the county].
"The tram is clearly seen by the business sector as an important part of Nottingham being somewhere to invest.
"Line One has been a success and Phase Two will bring the benefits of Line One to a wider population."
Mr Armstrong said it was hoped the Government would make a decision on whether to grant the workplace parking levy in the next few weeks – or possibly even days.
This would ensure the city could meet its existing costs.
It would then need to confirm the county's share can be met – either by the county or through extra city borrowing – by mid-July, when the Government's Project Review Group is expected to make a decision on whether the project is still viable.
It is hoped negotiations over the county's contribution will not affect the timescales.
Coun Jane Urquhart, city council portfolio holder for transport and area working, said: "We do still want to seek a way forward."
Coun Cutts said: "I will be happy to meet the city council next month to discuss public transport infrastructure in Nottinghamshire."
5 Comments
by Bruce, Beeston
Monday, June 15 2009, 10:30AM
“Spot on FW. Add to that a reduction in congestion (saving businesses lots of money), a more reliable form of public transport and a reduction in pollution in the city. As I've said before we need to catch up with the rest of Europe and we will only do this by spending money. A city with a good public transport network will attract new businesses.
Andyman, the shortfall will be 28M. I've no idea where you've got the 244M figure from. Why are you so concerned with Nottinghamshire county council anyway? You pay tax in Derbyshire so shouldn't you be concentrating on your own council?”
by FW, Nottingham
Sunday, June 14 2009, 12:03AM
“Here's another one for you: £450M of inward investment to the City from outside at just the time when local contractors need the work most.”
by Andyman, Derbys
Saturday, June 13 2009, 11:52AM
“Here lies the problem, the confusion over the costs in many peoples minds, it begins with a £28M contribution, this then rises to £53M with interest payments, then to £244M over the project cycle.
No wonder people get confused with a contribution starting at £28M and ending up at £244M, just the sort of thing that fuels speculation given the councils record of financial mismanagement.”
by Nick, West Bridgford
Saturday, June 13 2009, 6:55AM
“So the City Council will borrow to fund its pipedream at a time when it is laying off staff because it needs to make cost cuts. No wonder the term disfunctional was applied to the City Council, it will lay off staff and impact existing services rather than face the reality of the project is a non starter. £ 31 million spent so far, cut your losses and support your staff !!”
by wurrows, Nottingham
Saturday, June 13 2009, 6:35AM
“When will this stupid council fianally get it into their heads? It is not the stupid tram that everyone is opposed to, it is the ridicoulus Workplace Parking Levy. Do the people of Sheffield, Manchester, Croydon or the West Midlands pay such a levy? Answer - NO! So why are the people of Nottingham having another tax thrust upon them?
As for '"The tram is clearly seen by the business sector as an important part of Nottingham being somewhere to invest.' Then NAME the businesses. Do it - don't just spout off about it. I doubt the City Council can name just one.”