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Last Updated: Thursday, 17 November 2005, 14:36 GMT
Government delays cash for trams
Artist's impression of Merseytram
Construction on the scheme will start when the money is released
Merseyside's much-troubled tram system has once again been held up in a row over costs for the project.

The Department for Transport will not release its �170m until the local authorities agree to cover any additional funding gap.

Both Liverpool and Knowsley councils have already agreed to underwrite a �24m contingency fund.

But the government has said it wants assurances it will not get any further requests for funding.

What we say to the government is give us the �170m and let us get on with the scheme
Councillor Mark Dowd

A spokeswoman said: "The government requires unconditional assurances from the local authorities that they will fund any cost overrun.

"We have still not had them and we still need the authorities to provide them."

Merseytravel chairman, Councillor Mark Dowd, said he could not understand the department's reluctance to release the money.

"What we say to the government is give us the �170m and let us get on with the scheme," said Mr Dowd.

The Department for Transport has agreed to fund �170m, providing the project is underwritten.

A further �40m will come from Merseytravel and the remainder from Objective One European Social Funding and private sources.

The existing �24m contingency fund would be used in the event of the construction of Line One - the first of three proposed routes - running over its �300m budget.


SEE ALSO:
Blair asked to approve Merseytram
06 Nov 05 |  Merseyside
Councils agree to underwrite tram
04 Nov 05 |  Merseyside
Lib Dems back underwriting trams
01 Nov 05 |  Merseyside
Authority wants more time on tram
28 Oct 05 |  Merseyside
Trams 'will run in culture year'
08 Sep 05 |  Merseyside
Fight begins to save Merseytram
14 Jun 05 |  Merseyside


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