Nottingham City Council could lose responsibility for tram network

Responsibility for Nottingham’s tram network[1] could eventually be taken out of the city council’s hands as part of plans for a new East Midlands Mayor. Although the current PFI contract will continue running until 2034, responsibility for Nottingham’s trams could be transferred after this date. Nottingham Trams Limited runs the city’s network under the NET brand on behalf of the Tramlink consortium, which holds the PFI contract.

PFI deals involve private investors putting money into public projects with the promise of this investment being returned over a set period of time and as part of this, Nottingham’s network has also received significant investment from the Government and Nottingham City Council[2] over the years. Nottingham City Council remains responsible for the network, with its financial commitments including annual payments to tram operators for the ongoing operation and maintenance of the whole service. All these commitments are predominantly funded through PFI payments from the Government.

Should Nottingham City Council have managed its finances better over the last 10 years? Let us know here.[3] But ahead of a meeting to discuss plans for a new East Midlands Combined County Authority (EMCCA) on Thursday (November 7), Nottingham City Council says it may lose its responsibility for the tram network. The East Midlands Mayor will head the EMMCA, covering Nottinghamshire and Derbyshire, which the Government will hand significant powers and money to.

Over the next 30 years, the authority will be given GBP1.14 billion of Government investment and it will hold powers in areas such as housing, skills and transport. The role of East Midlands Mayor will be decided by the public at an election next May. Although the authority will have significant new transport powers, Nottingham City Council says the current situation for trams will remain until the end of the PFI deal.

Its report says: “The contract includes a number of obligations that are the responsibility of Nottingham City Council, which would need to be unconditionally and irrevocably guaranteed by the council in the event of transfer. “This would bring very significant risks to Nottingham City Council that it is not in a position to accept and so it has been agreed, in discussion with Government, that the tram will not form part of the devolution deal whilst the PFI contract is in place. However, this will not preclude strategic planning for extending the tram as part of strategic transport planning for the region.”

But the report then goes on to say: “It is anticipated that at the end of the PFI contract, responsibility for the tram will transfer to the EMCCA to be consistent with other public transport functions and to ensure it is fully integrated into policy and project decisions that are taken.” The report adds that the long-term aims for the network include the possibility of its extension, with suggested locations in recent months including the City Ground[4] and the Ratcliffe on Soar Power Station.

A Nottingham City Council report from 2011 estimated its annual total costs in regards to the tram network would be around GBP70 million for the majority of the PFI term.

Nottingham City Council now says those figures are out of date, but says it cannot share the exact current payments due to confidentiality clauses in the tram contract.

References

1. ^ Nottingham’s tram network (www.nottinghampost.com)
2. ^ City Council (www.nottinghampost.com)
3. ^ Let us know here. (xd.wayin.com)
4. ^ City Ground (www.nottinghampost.com)