WORK is set to start in earnest on Edinburgh's tram scheme after the Scottish Executive gave it the go-ahead.
The decision was welcomed today as a massive boost to the city and a major benefit to local residents and the Lothians economy.
The backing of the scheme marked a surprise turnaround by the SNP minority government after losing its first big vote in parliament on the issue.
But the Edinburgh Airport Rail Link (Earl) looks doomed after Finance Secretary John Swinney last night said the plans had "had it" - despite the Executive agreeing to consider a further report on the scheme.
During a dramatic afternoon at Holyrood, it was also revealed that a "funding gap" for the Borders railway means that it will not be able to open in December 2011 as was previously hoped.
The SNP offered some good news to rail commuters by signalling its determination to cut journey times with the electrification of the Glasgow to Edinburgh line.
The Executive also reaffirmed its commitment to a new Forth crossing, with both options of building a tunnel or a bridge being left open for now. MSPs voted 81-47 in favour of an amendment by Labour's Wendy Alexander to press ahead with the trams and sort out difficulties with Earl flagged up by the Auditor General.
Moments later, Mr Swinney made the unusual step of announcing that the new Executive would bow to Parliament on the issue.
However, he later warned there would be no additional funds for the £594 million project.
The scheme to return trams to the Capital's streets had been hanging in the balance following the SNP's election commitment to scrap it in order to fund other transport initiatives.
The decision to continue with the scheme today received widespread support from local politicians, business leaders and transport bodies.
NO GO? John Swinney said EARL had "had it"
City council leader Jenny Dawe said she was "delighted" with the decision. She said: "Trams will give the Capital the vital tools to equip it for the future.
"This is now a brighter future where commuters, residents, businesses and visitors will enjoy quicker journeys, more investment in our city, more accessible public transport and cleaner air, just as they do in many of our competitor cities."
Work on the project is expected to resume almost immediately, after plans to begin digging up roads to divert utility pipes were shelved in the wake of the SNP's victory last month.
Willie Gallagher, executive chairman of trams company TIE, said the decision brought to a close a "worrying period of uncertainty" for employees.
"TIE and the City of Edinburgh Council can now get on with the job of delivering world class trams for Edinburgh," he said.
Business leaders welcomed the news as a major boost to the economies of Edinburgh, the Lothians and the surrounding regions.
Ron Hewitt, chief executive of the Edinburgh Chamber of Commerce, said: "It is also a vote of confidence which sends a message to existing and potential investors in our Capital that we can make difficult decisions and deliver positive outcomes, that will ensure their investment is well placed and supported by an infrastructure fit for purpose for the 21st century."
He urged the Executive not to scrap the Earl project and said the high-speed link to the airport was "essential" to the future prosperity of the Capital.
Mr Stevenson said no new funding would be committed before the Executive reports back on Earl in three months' time - and Mr Swinney said later he believed the scheme was already "pretty dead".
He said the project faced practical problems such as having to tunnel under a "live" runway, and requiring trains that currently did not exist.
There were also problems with the lack of a project board structure and other issues.
"In the absence of all of that, I can't see where this project is going," he said.
Regional transport authority SEStran said today it was "extremely concerned" about Earl's future.
Its chairman, Councillor Russell Imrie, said: "The region needs a comprehensive, sustainable, transportation system to reduce congestion, tackle emissions of greenhouse gasses and ensure its economic future.
"We believe that successful implementation of the trams project and Earl can make a major contribution to achieving this goal.
"Earl will provide direct access to Edinburgh Airport by rail from most of Scotland, which is good news for all air travellers."
And Iain McMillan, the director of CBI Scotland, said: "We do not believe that the Auditor General's findings on Earl should necessarily be fatal to the project.
"Earl should bring significant economic benefits to Edinburgh and further afield."
Alex Salmond had come under intense pressure to rethink his opposition to the trams following the SNP's election victory.
TIE had warned that axing the trams would have cost around £100m, and supporters of the project said it would be like pressing the "economic self-destruct button" for the Capital.
A cross-party campaign was launched by politicians from the city's other four main political parties to urge the SNP "Don't trash our trams".
Councillor Phil Wheeler, the city's transport leader, said today: "This is great news for everyone who moves about our Capital.
"The absolute need for trams in Edinburgh has been demonstrated. They offer huge benefits in terms of capacity, reliability and our environment."
Friends of the Earth Scotland's chief executive Duncan McLaren also welcomed the news, saying:
"Having again received the backing of parliament, it is only right that the scheme should be allowed to proceed."
LATEST STATE OF PLAY ON TRANSPORT
Trams
The SNP Government has given the go-ahead for the project, ending weeks of uncertainty following the Nats' election win on the back of a commitment to axe the trams. MSPs backed a parliamentary amendment by Labour's Wendy Alexander yesterday to go ahead with trams, but within the budget set by the previous Scottish Executive.
Work will now start on building the tracks for a tram line from Edinburgh Airport to Leith via Princes Street. It is hoped the funding allocated to the project will also allow a spur line to be built from Haymarket to Granton.
Cost: £592 million, with £500m to be funded by the Scottish Executive and £45m plus any shortfall from the city council.
Completion date: Late 2010. If it is built, the Granton spur would be due for completion the following year.
Edinburgh-Glasgow Rail Line
Transport Minister Stewart Stevenson said electrifying the main line between the two cities was a "key priority". He said the Government was "absolutely determined" to pursue the project, following a key initial assessment report published yesterday by Transport Scotland.
Electrification would cut around six minutes off the journey time between Edinburgh Waverley and Glasgow Queen Street, by allowing diesel trains to be replaced with faster electric trains.
Cost: £264.9 million, including the part-electrification of other tracks in case diversions are necessary.
Completion date: Could be ready by March 2013.
Borders Rail Link
The Borders Rail Link is facing a funding shortfall and the opening date of 2011 is not achievable, said Mr Stevenson.
But the Executive remains committed to pumping in £115 million at 2002 prices, subject to a series of conditions being met on the business case, in terms of management strategy and integration. The link would see a 35-mile line running from Newcraighall in Edinburgh, through Shawfair, Eskbank, Newtongrange, Gorebridge, Stow, and Galashiels, before reaching the end of the line at Tweedbank.
Cost: The project is estimated to cost approximately £174.45m at 2011 prices, with £115m coming from the Executive. Other contributions from Borders, Midlothian and Edinburgh councils.
Completion date: After 2011.
New Forth Crossing
The Executive will press ahead with plans for a new Forth crossing, with a bridge the preferred option - although a tunnel west of the existing bridge is still being considered. A series of public exhibitions setting out the pros and cons of the two options was announced yesterday.
Cost: A bridge would cost between £2.5 billion and £3.5bn, while a tunnel would cost between £3.6bn and £4.7bn at 2016 prices.
Completion date: Around 2016.
