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Tram firms £1m fine threat

For every month of delay, the companies constructing Edinburgh city centre’s tram line will be fined £1 million, according to the Scotsman newspaper.

The fines will be issued if a new deadline of June 2012, set by the council tram developer TIE, is missed.

Its chief executive, Richard Jeffrey, criticised the consortium building the tram line for having a work-rate “way below” what is necessary, the Scotsman reported.

Sources at the consortium condemned the new deadline and fines threat as “desperate stuff” and claimed the work has been delayed by other factors, the newspaper said.

The city council, which runs TIE, reportedly did not like the fact that the consortium had drafted in former council leader Donald Anderson. TIE has apparently now recruited Tony Rush, a former employee of Balfour Beatty and Barr Construction.

The new deadline is four months later than the last one. A total of nine months had already been factored into the working schedule to allow for delays.