"WHY is it always Liverpool?"-these were the words on the lips of government ministers this week.
The deadline for companies wanting to run Merseytram passed last night with no offers, leaving the whole project at risk of collapse --and provoking high level criticism at the Labour Party conference.
Liverpool leader Mike Storey has called a crisis meeting for Wednesday to bring all parties together ina last-ditch attempt to salvage the situation.
Those attending the meeting will include council chief executive Sir David Henshaw and Merseytravel chief executive Neil Scales.
He has commissioned a full report into the Merseytram debacle from council regeneration boss Charlie Parker.
The man responsible for delivering the tram system today warned if the project failed it would have longlasting repercussions.
Councillor Mark Dowd, chairman of Merseytravel said: "I've been at the Labour Party conference this week and everybody wanted to know why it was Liverpool again.
"I thought we had put our reputation for failure in the past, but now it's coming back."
Riverside MP Louise Ellman echoed Cllr Dowd's views - even raising the fear that the government cash destined for Merseytram could end up in Manchester. She said: "We fought long and hard to get this money. The tram system was originally turned down, but our efforts got it back.
"It puts a big question mark over our ability to deliver. It's extremely serious and I am looking at the parties involved to get their act together and sort this out."
The Merseytram system has been years in the making with three lines planned - line one to Kirkby, two to Whiston and three to the airport, with the route completed by 2010.