PR 1352

WE WILL NOT STOP HERE SAY COUNCILS AS TRAM PROJECT IS PUSHED OFF RAILS

Portsmouth and Hampshire councillors today vowed to fight on and put continued pressure on the Government to help fund a solution to severe traffic congestion in south Hampshire after the announcement today that Government will not help fund a much needed tram connecting Portsmouth, Fareham and Gosport.

The decision comes after the Government has deliberated since a revised funding package was proposed back in March after costs increased due to a number of factors outside the local authorities' control .

Mobility between Gosport, Fareham and Portsmouth is severely restricted by congested roads and poor infrastructure connections. The South Hampshire Rapid Transit (SHRT) `tram system' is proposed to offer everyone a viable public transport service that will be safe, convenient and reliable, which will also provide an alternative solution to using the car.

Hampshire County Council's Leader, Councillor Ken Thornber said: "This decision makes no sense at all. Only last week the Chancellor spoke about providing a considerable increase in the investment available to deliver improvements to transport infrastructure. We remain fully committed to SHRT which is designed to take 3.1 million car journeys off the road per year, and we will explore every option. To do nothing is not an option and that would be a huge blow to so many - those who travel in to and out of Fareham and Gosport by road every day, all those dedicated staff who have put so much effort into this pioneering transport solution and the two transport specialist consortiums who have been so patient waiting for the Government's decision.

"We cannot sit back. We've already left the Government in no doubt about the widespread commitment to South Hampshire Rapid Transit and how it represents good value for money, and underpins the transport strategy for the whole of South Hampshire. The social, environmental and economic benefits would far outstrip the costs. Studies carried out with the general public estimate that around 10 million passengers would use this tram every year. Hampshire County Council will not be deterred.

"This case indicates the reluctance of Government to fund the local transport infrastructure desperately needed now to tackle existing access and mobility problems, never mind the growth in housing we are being asked to consider in the development of the South East Plan.

"I am committed to ensuring sustainable communities for the future and to resisting development where transport infrastructure is already inadequate. The Government has reconfirmed that light rail is very effective in persuading people to use public transport and that it will look urgently at how light rail could be made more affordable. We will now be examining with Government the options as there can be no stronger case for investment than in South Hampshire. We will be pressing to ensure its one of the highest priorities in the Regional Transport Strategy."

Portsmouth City Council's Leader, Councillor Gerald Vernon-Jackson, said:

"This is a huge disappointment for Portsmouth and unfortunately, the transport problems that we were trying to address through this project do not disappear.

By 2020 it is predicted that there will be a 40% increase in traffic and alternative transport solutions are needed to ensure busy urban areas don't become gridlocked.

Councils throughout the country are being given tough targets by the Government to increase public transport use, reduce congestion and increase housing. To meet housing targets we have to have a transport infrastructure in place to be able to accommodate people. The Government's failure to back schemes such as this - guaranteed to ease congestion and provide vital new access for development along the route - does not help us to achieve such demanding targets."

Background

The SHRT project team were asked by the Government to provide estimated for the project and submit them to bid for funding. Having taken all available advice at the time, an estimated budget of £170 million was forwarded after allowing for income from fares . The Government agreed to meet 70% of the cost of the project. The SHRT project team was then able to seek formal bids from transport specialists. The costs increased due to a number of factors outside the local authorities' control - including greater insurance premiums following 9/11, high construction inflation, an increase in public utility diversion work and the fact that the tunnel under Portsmouth harbour has to be deeper to accommodate the Royal Navy's new ships. The bids also reflect the financial backers cautious assessment of fare box revenue. The SHRT project team consequently asked the government for 70% of the additional funding and made proposals for modifying the scheme to bring the shortfall down significantly. Today's announcement withdraws the Government's total support from the scheme at this time.

Hampshire's SHRT project team were not alone in finding their initial forecasts would require additional funding. Leeds and Manchester also bid for additional funds from the Government for similar tram schemes.

1. The two bidders for the tram project are SMART consortium and South Hampshire Supertram Ltd. ENDS

For further information please contact: Kate Ball on 01962 845626

kate.ball@hants.gov.uk

20/07/2004