Willie Gallagher concedes disruptions are making it more difficult for local traders, but says trams will bring economic benefits
WILLIE Gallagher is probably one of the most unpopular men in Edinburgh at the moment. From motorists battling the ever-changing roadworks to businesses desperately trying to retain customers while working in the middle of a building site, there are
plenty of people who have their grievances with the man tasked with creating Edinburgh's tram network.
But Gallagher, executive chairman of trams firm Tie, is pragmatic. Speaking from his Haymarket office, from where the cones and barriers lining the Glasgow road are clearly visible, his economic vision is long term and his skin is thick to criticism.
Pointing to other cities that have suffered disruption during the installation of a tram system, he says he believes businesses are beginning to understand that the overall future benefits of a tram line in the city centre will outweigh any problems they are currently experiencing.
The former ScottishPower director explains that in Dublin, which launched its tram network in 2004, footfall in the city centre grew by 30 per cent almost overnight. He says: "We can only look at what has happened in other cities and take it from there, but we are confident the long-term benefits for business will be enormous." He adds: "It wasn't Tie, or Willie Gallagher, who decided 'let's have a tram system in Edinburgh'. It was a decision made by a lot of people who decided it would benefit the city, and it will."
Tram line 1a, which will run from Newhaven to Edinburgh Airport, is currently being built and is due for completion in 2011, while Tie is trying to secure funding for a second line.
But smaller businesses in Edinburgh have attacked Tie, claiming that their turnover has plummeted as the roads outside their premises are decimated – but Gallagher is resolute that the company is doing everything it can to help.
In an attempt to help out the struggling SMEs, Tie has introduced a grant system, where companies can apply for compensation of up to £4,000 each. Gallagher is immediately defensive over claims that the £2 million pot is not enough to make up for losses suffered by city firms.
He points out that while 284 applications for grants have been handed out to firms, only just over half have been returned, with a total of £530,000 handed out – mainly to traders on Leith Walk.
"Because we have only had a 53 per cent take up, we are able to use the additional cash to extend the scheme for 'hot spot' support in areas where specific problems have occurred and also those businesses not just on the main tram route but in the surrounding area," he explains.
"We want to encourage as many businesses as possible to apply for support. If they decide not to, we can't help them."
But while he is adamant that larger enterprises – such as the St James Shopping Centre developers, who are keen to get a tram stop directly outside their front door, and Royal Bank of Scotland, which will enjoy a direct tram trip to its Gogarburn HQ – are welcoming the scheme with open arms, he admits things may be more tricky for local traders, who will perhaps not even survive the construction phase to reap the later economic benefits.
He says: "It is more difficult for small businesses in terms of cash flow. We can't get away from the fact that if we are closing streets and making it more difficult for traffic and car parking, it may have an impact for some businesses. However, our job is to work with the businesses and get them through the construction phase and help them realise the benefits of the scheme."
Tie has estimated the tram system will create about 1,000 permanent jobs after the network is installed, as businesses "take advantage" of the improved public transport system. Gallagher is delighted that some businesses are already opening up as a result of the tram system, such as the "Tramway" café in Haymarket.
Gallagher, who last year celebrated a 70 per cent pay rise to £170,000, is happy: "We are running on time and to budget. That is what businesses need to remember."
