Metro revamp hits sudden hold-up

Jul 26 2008 by Adrian Pearson, The Journal

NORTH East transport schemes worth hundreds of millions of pounds have been put on hold by a Government review.

Last week The Journal revealed an announcement was due this month on the vital £300m investment in the Metro refurbishment.

But that has now been put off until the autumn, alongside a potentially huge transport investment through the Regional Funding Allocation.

When the first round of funding was set in 2006, the North East was given a say over around £429m and a similar chunk of Government money should have been heading to the region this week.

Despite the Department of Transport being ready to go with the full breakdown, the Treasury is believed to have intervened and ordered the spending to be halted and a decision put back until September.

In contrast, London Transport bosses are this week celebrating after the Government passed the final stages of the Crossrail Act, which gives the go-ahead for a £16bn infrastructure project.

Last night Tyne Bridge MP David Clelland, one of the region’s leading transport advocates, said he could see “no reason for the delay”.

He said: “As far as I’m concerned this is money we in the North East need, this is money we deserve and money that should already have been signed off.”

North city leaders were preparing for both decisions to be made this week, but hopes of a major payout were dashed at the last minute by “the deft hand of the Treasury”.

And while many civil servants in the region are publicly adjusting to the situation, The Journal understands the twin decisions have left many confused as to just what is holding back the Government.

Newcastle Council leader John Shipley said last night the authority had not been given any explanation for the decision.

He said: “We have to ask why these decisions are being delayed. I hope the delay will not lead to bad news. Metro Re-invigoration is urgently required and the case is overwhelming.

“Yes, the Government is having real difficulty with its finances but this cannot mean that major projects get delayed.

“It is very important that the projects we have in the pipeline get the go-ahead.”

Northumberland County Council deputy leader Roger Styring sits on the board which would have been deciding this week where to spend millions of pounds worth of Government transport cash.

He said: “We have taken a hit here. We have real infrastructure problems and we have had to wait too long to get them solved.

“There is a real sense of frustration and a feeling that after years of missing out, we are once again having to bear the brunt of the Government’s bad decisions.”

Peter Wood, who sits on the Tyne and Wear Passenger Transport Authority, said the worry in the region was that Government spending cuts could be coming.

He said: “We want to know why funding commitments are being put on hold. In terms of Government expenditure, things are very tight and now we are seeing a rethink in some areas and we’re left hoping we still have good news in the autumn.

“Metro Re-Invigoration is fundamental to Tyne and Wear and the economy and any delay is bad news. Right now we have to ask if the Government’s chickens are coming home to roost.”

Despite most agencies in the region expecting an announcement before the summer recess, the DfT last night insisted “there has been no delay”.

And a spokesman for the Treasury could not comment on the reason to delay the announcements, other than to say they were still expected “sometime soon”.

The Government has insisted the announcement shake-up does not indicate a change in policy.

A Treasury spokesman said: “As far as the Treasury is concerned, some announcements were made before the summer break, and while people may be expecting them in September, there is nothing to say we cannot announce these in the summer.”

The DfT said it would not discuss speculation regarding the timing of official announcements only to say there had been no delay.