Crisis talks over trams project

The tram project is expected to run well over budget

Talks are to be held over Edinburgh's trams project in a bid to end a stalemate which has brought work on key sections of the route to a standstill.

The project is already two years behind schedule and there are growing concerns about the final cost of the scheme.

The talks come amid speculation that tram project bosses are preparing to tear up their contract with the German firm, Bilfinger Berger.

The company has been blamed by some for causing many of the delays.

Bilfinger Berger is contractually prohibited from commenting on those allegations.

But BBC Scotland environment correspondent David Miller said it was clear that relations between the contractors and Transport Initiatives Edinburgh (Tie), which is running the tram project, had reached rock bottom.

Managers from Tie will meet senior councillors and officials from Edinburgh City Council to brief them on what they believe is the best way forward.

There now seems no doubt the final cost of the project will be far higher than the budget of £545m, but it is likely to be some time before the outcome of the meeting is revealed, with managers saying negotiations must remain confidential.

Sonia Roberts, 59, said: "It's disgusting because it's caused a lot of interruption in Edinburgh. All the shops are suffering.

"I work in a shop myself and the business has gone down by half and I really don't think it's worth it."

Carol Hamilton, 37, said: "It's a bit of a joke. Lots of disruption. I think they're having another argument about something but there's no practical benefit as far as I can see."

Rudolf Joseph, 73, said: "The tram project is really a terrible upheaval but the only mitigating factor perhaps is that there will be less carbon emissions."