19/02/2008

• R&D halted until further clarity on public sector role and funding
• No further work planned after bird monitoring and Alloa trial run
• Serious concern over "cynical” politicisation of transport initiative

Stagecoach confirmed today (19 February 2008) that it is to freeze any further work on its proposals for a cross-Forth hovercraft from the end of this month.

The Perth-based transport company is putting all research and development on the project on hold until it receives clarification over the future public sector role and investment, both of which are key to taking the project forward.

Stagecoach unveiled a detailed business plan in autumn 2007 outlining how a link could be established between Fife and Edinburgh using a 150-passenger craft with a crossing time of just 20 minutes.

The Group offered to invest more than £10million to make the project a reality, with limited short-term public sector support of around £3.3million to bridge the gap in the first three years to reach the point where it became commercially viable.

Around £500,000 has already been invested by Stagecoach in the plans, which could boost transport links and the economy for communities on both sides of the Forth.

Stagecoach has chartered a hovercraft to carry out a survey of wintering birds on the Forth estuary from 21 to 28 February as part of an environmental impact study. The hovercraft will make several trips across the Forth each day from Kirkcaldy to Portobello to allow ornithologists to observe wintering bird behaviour around the Island of Inchkeith.

The hovercraft will also carry out a trial run from Kirkcaldy to Alloa on 22 February to demonstrate the technology to councillors and officials from Clackmannanshire Council as part of Stagecoach’s longer terms vision for a network of sea-based links on the Forth.

However, Stagecoach said today that this would be the last planned work for the immediate future.

A Stagecoach spokesman said: "There has been wide support from across the political spectrum for our proposals for a permanent cross-Forth link and we have been working on the concept for nearly a decade. We have presented our proposals to the Scottish Government, South East of Scotland Transport Partnership (SEStran), Fife Council and Edinburgh Council.

"However, we are unable to progress the project further until we have clarity from the Scottish Government and public sector agencies on their delivery role and the funding process, which is critical to the future of the initiative."

The spokesman also criticised attempts by some politicians to make political capital out of an innovative project designed to bring significant transport, economic and social inclusion benefits to the region.

"We have been entirely transparent in discussing the business case for the hovercraft project with many stakeholders and we would expect the same rigorous examination and financial assessment of our proposals as any other transport project,” said the spokesman.

"However, we have become increasingly frustrated and angry at the cynical use of the hovercraft project as a political football. Some politicians have put personal and party self-interest before the communities in Fife and Edinburgh.

“The fact is that we have received support for the hovercraft concept from both the current Scottish Government and the previous administration, which approved public funding to meet part of the cost of the two-week trial in July 2007.”

ENDS

For media enquiries, please contact:
Steve Stewart, Director of Corporate Communications,
Tel: 01738 442111 (office) or 07764 774680 (mobile)
email: steven.stewart@stagecoachgroup.com