09 August 2002
The Executive has already allocated £1.9m towards studies on various aspects of the Waverley Rail Project, which would rebuild the 35-mile rail link from Edinburgh to Galashiels that was removed in 1969.
But a leaked letter from Scottish Transport Minister Iain Gray to John Scott, the Liberal Democrat leader of Scottish Borders Council, published in the press this week, casts doubt over the Executive's willingness to fund the scheme.
Gray wrote: 'Before any significant further commitment can be made by the Scottish Executive and Scottish Enterprise to support the proposal, it will be necessary to demonstrate a sound case for public sector investment in the project based upon a thorough appraisal of the costs and benefits involved.'
Peter Fuller, transport policy manager for Scottish Borders Council, told Public Finance: 'I was a bit surprised at the tone of the letter from the minister but it was very much a snapshot of the position we were in a couple of weeks ago. It was influenced by a spat with Scottish Enterprise that has since been very rapidly resolved.'
Fuller pointed to a study and costing exercise into the project which was carried out in 1999. It listed a number of benefits for the Borders, including the creation of 900 jobs and demand for 700 additional houses.
He added: 'We've got the lowest wages in Scotland yet we're on the very doorstep of Edinburgh, which is thriving.'
PFaug2002
