 MERSEYTRAM will today turn to Europe to provide a cash lifeline it needs to become a reality. The project's promoters are hoping Objective 1 money can be used to help plug the gap of more than £30m which is threatening to destroy more than five years of planning. The Merseyside Objective 1 programme committee meets at 1pm today to consider whether to increase its contribution from the current level of £25m. A senior Objective 1 source last night told the Daily Post that the vibes for the tram were good but it would not be without problems even if the will was there. The source said: "This money is not produced from thin air - if it goes to the tram, it will have to be taken from elsewhere. The other problem is, if we make such a change, the decision will have to go back to the Commission for approval and, even if there is no problem, it still takes time." The Daily Post can reveal that senior city figures put the current cost of keeping the tram consortium together while the project hangs in the balance at around £50,000 a week. We can also reveal for the first time the cocktail of sources which Merseytravel hopes can provide the money to make sure the tram happens. The Government limited its support to £170m. But the leasing deal for the trams themselves, which saves the scheme more than £30m in tax, is now believed to have been accepted in a different form after the government's initial rejection. That would leave the project around £34m to find. Possible sources of money are: * An £8m grant from the Department for Transport to fund free travel for the over 60s - since Merseytravel already provides this, the money could be diverted to the tram. * Mersey Tunnel tolls: last year's Mersey Tunnels Act allows for excess tunnels money to be diverted into other public transport forms but it could be controversial to tunnel users. * Borrowing - Merseytravel could ask for a loan to bridge the gap from the Public Sector Loan Board. The interest on such a loan could be up to £2m a year and it is likely this would have to be covered mostly by Liverpool and Knowsley councils, the prime beneficiaries of the tram. The government has asked all five Merseyside authorities to sign an agreement saying they believe the financial elements of Merseytram stack up before giving final approval. A Merseytravel spokesman said: "We're working towards a funding solution to meet government requirements and any speculation at this time would be unhelpful." andykelly@dailypost.co.uk | 
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