Liverpool's tram plan back on agenda

Feb 18 2008 by David Bartlett, Liverpool Daily Post

TRAMS were today named as the top transport priority for Merseyside  – despite already having cost £70m without a single piece of track being laid.

The region’s passenger transport authority voted to authorise "to take all necessary and appropriate steps to revive the scheme in partnership with the district councils”.

Merseytravel chief executive said: “If the Merseytram project does move ahead we have to have everybody on board - politically and at officer level.”

The passenger authority also considered last month’s Audit Commission’s report which criticised how £70m was spent on the aborted scheme.

Work has already started in building up a revised business case for the trams.

Last night, Roger Harrison, project director for Keolis, the company that would operate the trams, said his team was firmly behind reviving the scheme which “Merseyside deserves”

Merseytram was scrapped in November, 2005, after then Transport Secretary Alistair Darling refused to hand over the £170m the Government had committed to Line One between

Liverpool city centre and Kirkby. The scheme remains one of Merseytravel’s top priorities, and is part of the Local Transport Plan which expires in 2011.

Line One to Kirkby has planning permission until February, 2010.

The Daily Post understands that, if a new financing package could be put together, work could start as early as next year with a projected build time of around 18 months.

In December, it was revealed that talks were under way between ministers and transport officials in Merseyside.

Transport Secretary Ruth Kelly then said Merseyside could have the £170m originally pledged to the scheme, plus interest, if it could be shown the scheme had widespread support in the area.

Today’s meeting will be the first public discussion of the Audit Commission’s Public Interest Report which criticised the £70m that had been spent on the aborted scheme.

Around £28m was spent on consultants, £15m on moving utilities, and £17m on design and management costs.

Merseytravel borrowed £50m for the scheme and repaying that debt now costs almost £5m annually.

Weak management and inadequate financial reporting mechanisms were blamed.

Merseytravel was also told that it should have engaged better with local councils in the area.

The cost benefit ratio of the scheme is now understood to stand at 2:1 (£2 of benefit for each pound spent), which was better than when it was first proposed in 2004.

The main factor in this is Everton FC’s plans to move to Kirkby.

New capital costs would have to be drawn up for the scheme, but these are not thought to have risen dramatically.

Merseytravel chairman Mark Dowd last night said: “We believe in this, and we believe the [cost benefit] ratios are better than before [because of potential developments in Kirkby].

“We believe the business case for it is sound.

“With everything that is going on in Kirkby, we really do need to be talking about trams. The Government this time seems to be more OK.

“There is also a new chief executive at Liverpool City Council [Colin Hilton], he’s stepping up to the crease with us on this one, whereas we didn’t have that before.” He said Merseytravel would need some guarantee from Ministers that the funding would be available. Last time, a ministerial change put the “kibosh” on the scheme, said Mr Dowd.

“We have got to make sure that everybody is on board this time.”

He also said the rail links needed improving if Everton FC relocated to the town.

Merseytravel is looking into double tracking a section of the railway over the M57 which would allow for a doubling of the number of trains on match days.

Mr Harrison said: “The private preferred bidder partners have helped provide information required by Merseytravel and its advisors in constructing their revised business case.

“We have all confirmed our support for the project and hope that it can be revived.

“Merseyside deserves a tram system to help with sustainability, regeneration, access to the new retail developments, conference centre and provide connectivity, inward investment and improved environment, so that Liverpool can take its place alongside the other major European cities.”

davidbartlett@dailypost.co.uk