Merseytravel made an important step towards reclaiming millions in Government funds for trams last night.
The High Court in London granted permission for the regional transport firm to challenge the Department of Transport in court over its refusal to hand over £170m for the proposed Line One of the Merseytram scheme, a tramline between King's Dock and Kirkby town centre.
Knowsley and Liverpool councils were furious last month when Derek Twigg, Transport Minister and MP for Halton, rejected their plans for a £24m contingency in case the project went over-budget.
Twigg argued they should have written a blank cheque - a move the councils argued would have been illegal.
Now Merseytravel will fight to regain the Government money, which was promised as far back as 2002. If they fail, they will fight for compensation to cover the millions already spent on the plans. If they win, work will start on Line One in March.
In the High Court yesterday, Judge Justice Silber said, "It seems an important case which clearly passes the threshold for permission to be granted."
Merseytravel chair Cllr Mark Dowd said, "This is a major step forward in our fight to release the £170m for this vital regeneration scheme. I am delighted we have now got a real opportunity to present our case in a courtroom."
A hearing is due to take place on January 30.
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