O'Rourke insists Luas on track despite inquiry adjournment

The Minister for Public Enterprise, Ms O'Rourke, has rejected claims that the £220 million Dublin light rail project, Luas, is in jeopardy after yesterday's six-month adjournment of the public inquiry into the plan. She also moved to dampen speculation that EU funding earmarked for Luas may be diverted into other transport projects.

"Everything is still moving along on schedule and funding will remain intact," she said, adding that she was "more and more secure" that monies "won't be lost to Luas".

If the Government decides to reallocate funding, which is permitted under EU conditions, the cost of the light rail project could be taken up by the Exchequer. However, Ms O'Rourke said no consideration had been given to any other spending option.

She also rejected criticism of her decision to commission an independent study to assess the option of running Luas under ground, which Judge Sean O'Leary cited as the reason for yesterday's inquiry adjournment.

Ms O'Rourke was "far more intent on spending money wisely than rushing into something when we haven't the full facts". She added that she had been unaware of CIE's position outlined at the inquiry that it might withdraw its application for Luas if the review favoured the underground option. She said CIE "should have reported that to me".

Following the adjournment, the former transport minister, Mr Alan Dukes, renewed his criticism of the review as a "futile delaying tactic". He said the Minister had "not only long-fingered Luas, she is digging a grave for it".

"Under the original timetable, work could have commenced next April, and the Tallaght and Dun drum lines could have been completed in time to draw down the agreed EU funding. All of that is now seriously at risk," he said. The EU allows expenditure to be incurred until December 31st, 2000. This deadline can be extended by one year only.

Green Party TD Mr John Gormley said the underground option had been studied twice already and reviewing it again was a "disgrace". Mr Eamon Gilmore, Democratic Left spokesman on the environment, said "the reality now is that there is little prospect of seeing trams on the streets of Dublin this century".

He added the Minister should "abandon the plan to get consultants to examine the discredited proposal, allow the O'Leary inquiry to proceed without further delay and put some effort and energy into getting Luas back on the rails."