Tram crash

The Evening News reports that the cost of the Edinburgh tram developments is soaring:

"Experts now believe it will cost £634m to create two lines into the city centre. The news will come as a huge blow to the city council, which has secured just £375m for the project. Officials at TIE today said original estimates had failed to include inflation and blamed the time it takes to receive Royal Assent for the delay...
The Evening News revealed last week that a funding black hole had emerged over the tram plans network, when it was thought the final cost was to be £539m.
Since December 2003, TIE has quoted the full cost of creating the two lines - one route to the north of the city and another between the city centre and Edinburgh Airport - as £473m.
But a report by TIE lodged with the Scottish Parliament yesterday reveals that the cost of creating the two lines, based on 2003 prices, is £484m, and that £150m has to be added to account for inflation.
It is thought the Scottish Executive will come under mounting pressure to meet the bulk of the shortfall in the event of the two bills passing through parliament and receiving Royal Assent in the spring of next year.
However, the council may also have to borrow tens of millions of pounds to help bridge the gap."

Although I was initially sympathetic to the case for the trams, this is now getting out of hand. The Council and the Executive are being asked to invest in faith that the economic benefits will justify the costs. And it becomes increasingly difficult to believe that the trams will not replicate the scandal of the Parliament.