Negotiations
between Edinburgh Council and Lothian Buses have failed to meet a deadline for
agreement which was set for Monday this week. The negotiations are to agree
strong governance, financial and shareholder controls for the operation of
trams and buses in Edinburgh.
Conservative
Group Leader Cameron Rose noted:
"It is essential that a satisfactory agreement is reached on governance, financial and shareholder controls for the operation of buses and trams.
Knowing the importance of the
terms of such an agreement I will be calling for an early meeting of all
councillors for no later than 8th August if the delayed negotiations further
stall or if the agreement is not considered to be satisfactory.
If we cannot be assured there is a satisfactory
agreement by Monday next week, it is essential councillors are fully updated to
review and decide on the options on this important issue. Edinburgh
Conservatives will push for an urgent meeting of all councillors as soon as
possible.
Edinburgh Council is the senior shareholder and
councillors must ensure the strategic direction and operation of trams and
buses is in the best interests of the people of Edinburgh."
Notes:
1. Edinburgh Council is 91%
shareholder of Lothian Buses (the remaining interest lies with the neighbouring
councils). The agreement envisages a
holding company with two subsidiaries, Lothian Buses and Edinburgh Trams Ltd,
the latter with Edinburgh Council as the sole shareholder.
2. Edinburgh Council met on 27th
June and noted that negotiations were expected to be completed by 22nd July.
3. Edinburgh Conservatives proposed
(and the Council accepted) the following in relation to the negotiations: “Edinburgh
Council notes such discussions are scheduled to be completed by 22nd
July and instructs that the group leaders of all parties be briefed immediately
prior to their conclusion in order to assess their success. In the absence of a satisfactory conclusion
protecting the Council’s position having regard to its financial contribution
and liabilities, opportunity should be afforded to the Council leader, in
consultation with group leaders to institute an emergency meeting of Council
within 14 days.”
4. The minuted decision can be found
here (item 10) and report in full Edinburgh
Tram – Preparing for Operations can be seen here.