THE former chief executive of the firm in charge of setting up Edinburgh Trams believed he could have got a better deal for taxpayers over the controversial project but was “frozen out” of key talks, an inquiry has heard.
The Edinburgh Trams Inquiry, which is examining how the project ended up £231 million over budget and three years late, heard that Richard Jeffrey, then chief executive of Transport Initiatives Edinburgh (TIE) – the arms-length firm tasked with delivering the project – was unhappy with the deal negotiated between Edinburgh City Council and the trams consortium Infraco in 2011 to get the stalled scheme back up and running.
The consortium, made up of firms Bilfinger Berger and Siemens, eventually delivered the trams at a cost of £776 million The inquiry before Lord Hardie heard from Alan Coyle, a former council finance manager, who said key figures at TIE believed scrapping the deal and finding new contractors could have cost less.
Mr Owen was quizzed over the £362.5m proposal to settle with the contractors and get the project back on track.
Inquiry counsel Ross McClelland said that price tag was agreed by then council chief executive Sue Bruce and then TIE chairman Vic Emery, as well the council’s finance director Donald McGougan.
Asked by Mr McClelland: “What about people from TIE?” Mr Owen replied: “I don’t think the people from TIE thought it was a sensible price.
“I think the people from TIE thought they could have got an agreement of separation that would have been more financially advantageous.”
And he said: “I don’t think Mr Jeffrey [TIE chief executive] was happy with the deal.”
He said this was also true of Stephen Bell, the project director of the tram network.
The inquiry heard that in a summary of the mediation council negotiator Tony Rush had written: “Richard Jeffrey was in the main frozen out of the decision-making process by the principals but at all times was given the chance to comment and object which he did.”
Asked what he understood by being “frozen out of the process”, Mr Owen said: “I would say omitted from the lead discussions with Sue Bruce and Vic Emery.”
Mr McClelland said: “So the chief executive of TIE formed no part of the decision making process?”
Mr Owen responded: “I wouldn’t say he didn’t form any part of the decision making process.”
Costings over reaching a settlement with Infraco to break the deadlock over the project, mothballing it and looking for a new
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