Pathfinder鈥檚15-year plan in doubt after Department of Transport scraps 拢1bn extension

The 拢2.4bn regeneration of Oldham and Rochdale has been been thrown into turmoil after the Department of Transport withdrew backing for a 拢1bn tram link.

The extension of the Metrolink tramline to Oldham and Rochdale was central to the two Greater Manchester districts鈥 15-year regeneration plan.

Roger Ellis, chief executive of Rochdale council, said: 鈥淲e have been relying heavily on the extension. It鈥檚 been important to the regeneration effort for a long time now; our plans have been based around the proposed route.

鈥淭he potential demise of the Metrolink weakens the pathfinder from an economic point of view.

鈥淐rucially, the neighbourhoods in the pathfinder would have had tram stops and access to the town centre and beyond: this would make housing and commercial property much more lucrative.

鈥淲e were confident of renewal based around the Metrolink bringing these benefits; this process will now be much more difficult.鈥

Ellis added that, although the 70,000-home pathfinder would proceed as planned for two years, the strategy beyond that 鈥渨ould have to be rethought鈥. The project has received 拢53.5m in ODPM funding for its first two years.

The Manchester Salford pathfinder will also be affected by the move, but not as badly because the Metrolink line already runs through its boundaries.

All 10 councils in Greater Manchester will meet MPs, businesses and tenant groups on Monday to discuss a campaign to save the scheme.

It is understood senior ODPM officials are livid at the decision, announced last Tuesday, and want 鈥渦rgent meetings鈥.

We were confident of renewal based on the Metrolink. It will now be much more difficult

Roger Ellis, Rochdale council

An ODPM source said: 鈥淭he plans for Oldham and Rochdale assume the Metrolink extension will go ahead. Unpicking this will cause serious problems.

鈥淭he impact could be as serious as sending them back to the drawing board.鈥

An ODPM spokeswoman said: 鈥淲e recognise the potential impact on the Oldham Rochdale and Manchester Salford pathfinders. The ODPM will be discussing the implications of the decision with the Department of Transport.

鈥淲e will also be working closely with the pathfinders to ensure the impact is minimised.鈥

A Department of Transport spokesman said: 鈥淲e considered all these things when we originally gave the bid approval.

鈥淸But] costs increased again and again so we could not approve it with no guarantee it wouldn鈥檛 happen again. We are fully aware of the disappointment and concern this has caused and we will work with the local authorities to try to develop alternatives.鈥

The Oldham Rochdale pathfinder bid for 拢600m from the ODPM over the 15 years of the project. It expects investment from the private sector to lift the total regeneration budget to 拢2.4bn by 2020.

The Manchester Salford pathfinder could not be contacted for comment.

End of the line?

July 2000
As transport secretary, John Prescott announces funding of 拢282m for the 鈥渂ig bang鈥 extension of the Metrolink tramline. Total estimated cost 拢500m

April 2002
Oldham and Rochdale named as one of nine housing market renewal pathfinders

December 2002
Transport secretary Alistair Darling announces government backing of 拢520m for the extension. Total cost 拢820m

December 2003
Department of Transport warns that it won鈥檛 鈥減our money down a black hole鈥. Total estimated cost 拢1bn

March 2004
Oldham and Rochdale awarded 拢53.5m until April 2006 by ODPM to carry out market renewal work

20 July 2004
Darling withdraws backing for tram scheme