A TRAMS consultant has told how power swayed between different controlling boards until the firm set up to deliver the project was pushed to a "very arms length" position as design and roadworks issues fell behind schedule.

Edinburgh Trams director: Tackling cost problems will 'open up the whole can of worms'

Graeme Bissett, taken on in 2003 as a consultant to Transport Initiatives Edinburgh (Tie) - the firms set up to run the project - on a two days a week basis but who stayed until 2010, said that by 2006 Edinburgh City Council appeared to step back from the firm.

Mr Bissett, earlier reported to have been paid £1,000 a day when initially taken on, told the Edinburgh Tram Inquiry before Lord Hardie that "it was as if there was no ownership between the council and the (council) subsidiary company, Tie Ltd, which created a lot of layers of responsibility and requirements that from my point of view and more importantly, the directors of Tie at the time, felt were inappropriate".

The Herald:

Power shifted from Tie to Transport Edinburgh Limited, another council company established by to co-ordinate tram and bus operations in Edinburgh.

By 2007, design details expected to have been completed and preparatory roadworks largely done were still behind schedule, with the contract with the main contractor due to be signed in 2008.

Edinburgh Trams director: Tackling cost problems will 'open up the whole can of worms'

Mr Bissett was asked by Jonathan Lake, senior inquiry counsel, about advice given by Andrew Fitchie of DLA Piper LLP, who were Tie’s legal advisors in relation to contract procurement and conclusion in December 2007.

Mr Lake said: "Can you remember anyone arguing or advising that the financial close shouldn't be achieved, that you shouldn't report to the council and get the final go ahead until the design was further developed?

Mr Bissett said: "No, I don't. I think it was. My strong recollection is that the focus of the discussions was around managing the issues, rather than changing the timescale for programme."

Edinburgh Trams director: Tackling cost problems will 'open up the whole can of worms'

Asked by Mr Lake: "Specifically, I should ask you: do you recall Andrew Fitchie of DLA advising that it would be a mistake to proceed to close and awarding the contract at that stage?"

He replied: "No, I don't".

The inquiry continues.