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Lib Dems reveal benefit to cost ratio of Haymarket tram project is now below Government guidelines

August 28, 2011 10:53 AM
Originally published by Scottish Liberal Democrats

Scottish Liberal Democrat leader Willie Rennie MSP has revealed that the Scottish Government may now have to stop funding the Haymarket tram project because it falls below the required benefit to cost ratio.

The SNP Government have yet to supply the remaining £60 million of its £500 million investment in the trams. This £60 million may now be under threat as the Haymarket has a benefit to cost ratio of below one.

Mr Rennie has called on Finance Secretary, John Swinney to step in and review the Council's decision to opt for the loss making Haymarket option.

Commenting Mr Rennie said:

"The Scottish Government will not want to fund this loss making and low benefit to cost ratio scheme.

"The Scottish Government should intervene now before it's too late. Their action could help stop the Haymarket scheme and resurrect the profitable St. Andrews Square option.

"The Scottish Government must now follow through on their statement yesterday and review the decision made by the council, so that the council can revisit the flawed decision made on Thursday and resurrect the profitable St Andrews Square option.

"We now need to see decisive action from the Scottish Government to save this project."

Notes

The report on the options was carried out by an external consultancy, WS Atkins.

The Benefit to Cost Ratio for the St Andrew Sq option was 2.20.

This means that for every £1 of public money invested, you get £2.20 back in benefits (environment e.g. reduction in CO2 emissions, economic development e.g. jobs as well as the farebox revenue.

The BCR for the Haymarket option is estimated to be below 1.