BUSINESS leaders today hit out at an extension to the tram compensation scheme, claiming it does not go far enough.
Tram firm TIE announced changes to its business support initiative, which will see an extra 200 businesses become eligible for compensation payments of up to £4000. The move means traders on side streets along the Newhaven to airport route will be e
ntitled to cash for the first time.
However, TIE has not increased the £2 million pot from which payments will be paid.
The changes come as businesses across the tram route are reporting increasing difficulties as a result of the roadworks.
This includes the Suruchi Too restaurant in Leith, which today reported an 80 per cent drop in turnover since the partial closure of Constitution Street last week.
But TIE today insisted that Edinburgh traders were getting unprecedented levels of support when compared with other tram projects. However, Graham Russell, chairman of the Federation of Small Businesses Edinburgh branch, said it did not go far enough. He said: "The changes are nothing more than a gesture.
"There is clear evidence that businesses along the route are suffering extreme hardship and we need more money to address this. Yes extend the scheme, as we have been saying all along, but you need to match that with more money to make a real difference to the shops that are suffering right now."
In January, tram chiefs agreed to move the cut-off date for compensation and so far
more than £515,000 of small business support payments have been made to 143 traders, mainly in Leith Walk.
But Lothians MSP Shirley-Anne Somerville said construction work on the tram scheme was causing havoc for businesses. She said: , with a distinct lack of "Open for Business" signs in Leith.
She said: "Work has just begun on a new phase of construction on Constitution Street and already businesses have reported a drop in turnover of up to 80 per cent.
"These businesses cannot survive without compensation.
"TIE have got to stop passing the buck. They have a contingency fund and they must use it to help local businesses or there will be nothing left by the time the trams are up and running."
Last month business leaders were united in their condemnation of the rates assessor, the Lothian Valuation Joint Board, for pegging rates discounts for trams disruption at 20 per cent.
The move saw the assessor being accused of not sticking to the spirit of a variable rates discount deal struck in 2006.
Willie Gallagher, TIE's executive chairman, said: "It was always the intention to review this scheme with our partners. Following the successful distribution of over £500,000 on Leith Walk, I believe these changes will improve the already successful small business scheme.
"The objectives of TIE and its partners have been clear from the outset – to assist as many businesses as possible."
Spice has gone out of our tradeAS soon as the JCBs and men in hard hats moved in, the lunchtime trade simply disappeared from the Suruchi Too restaurant on Constitution Street.
In the first week of tram works, not a soul walked in for a lunchtime meal at the popular Indian restaurant.
Landlord Herman Rodrigues today claimed his turnover was down 80 per cent in the first week alone, and he has already had to lay off seven staff. He added: "To serve not a single customer at lunchtime is crazy.
"The lack of parking is really affecting our takeaway trade, as well as our regular bookings. We are not ones for giving up without a fight, but it is hard to see how we can sustain such losses.
"I've been disappointed with the communication from TIE. There has been no working during the weekend so why not re-introduce parking for these few days and allow me to try to recover some trade?"
Mike Connelly, TIE's stakeholder manager, said the workers were today putting signs at either end of Constitution Street to try to help business on the street.
He added: "We will remain in close dialogue with Mr Rodrigues and others."
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