PLANS for a supertram linking Fareham, Gosport and Portsmouth are back on track.
A revised bid for the South Hampshire Rapid Transit has been submitted to government after initial plans were thrown out earlier in the year.
Hampshire County Council and Portsmouth City Council have rewritten the bid and reviewed the cost of the scheme.
The developers have now given the government the option of carrying out the work in a phases to keep costs down.
This will mean the planned loop system between Fareham rail station and the main bus station is likely to be deferred because it is the section likely to carry fewest passengers.
User will need to get off at the train station and catch a bus into town.
This decision has angered Fareham Council leader Sean Woodward, who said it was a "sad omission."
The initial proposals were rejected because of escalating costs. Fears of rising insurance premiums meant the price rose from an initial £100m to £270m.
The government's contribution has now been reduced to £170m.
The two developing bodies have also aligned their plans more towards the government's guidelines and propose making use of disused railway lines to free-up space on roads.
A tunnel under Portsmouth Harbour will link Portsmouth and Gosport.
The councils said the scheme ties in with the government's aim for economic regeneration and social inclusion.
Hampshire County Council leader Ken Thornber said: "There's no stronger case for a tram scheme than here in south Hampshire, where, unlike schemes in Leeds and Manchester, we're proposing a totally new link rather than an extension or parallel scheme.
"The social, economic and environmental benefits far outstrip the costs, and it would be of massive benefit to commuters in the area."
The supertram would be the missing link in the transport network.
Cllr Woodward, expressing disappointment that the Fareham Loop could be deferred, said: "I am very sceptical because it seems a very significant part of the scheme is being cut down. In my view the link between Fareham train station and the bus station was the most useful. We have designed and are opening a new road large enough for a tram, but now we might not need it.
"Why would people want to catch a tram to Fareham to go shopping when it will leave them at the station? They could just catch a bus instead."
Peter Edgar of Gosport Council said it was boom time in the south and it was time to cash in.
He said: "I have backed the plans since their inception in the mid-80s and was very disappointed when they were first rejected.
"It will be good for the whole area. It is boom time at the ports at the moment and so it is an excellent time to take the plans forward."
It is hoped that the trams would remove more than 3,000,000 car journeys a year from the M27 and A32.
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