Consultants MVA conducted a study for Galway City Council in Ireland, where Tram Power is hoping to build a major new light rail system.

The project, along with plans for a tram network in Preston, is set to create more than 100 vehicle building jobs in Lancashire.

But the MVA report, released earlier this year, raised questions over the validity of light rail, claiming it would cost more than 698m euros, not the 250m euros which Tram Power claims.

The report came down in favour of a Bus Rapid Transit system instead.

But Lincoln Shields, business development manager for Bootle-based Tram Power, said the council in Galway had ignored that advice and backed their tram proposals, known as GLUAS.

He added: "We are very confident (of creating jobs in Lancashire).

"MVA were brought in as consultants by the city council officers.

"What we find in some towns and cities is...because they can't control it because it will not be funded by public money, they tend to be anti-tram.

"When it was discussed by the council, they totally ignored the recommendations and they believe the proposal for the GLUAS system is very viable."

Brendan Holland, chairman of the GLUAS group, reportedly alleged there were "areas of concern" in the MVA report, particularly over the costings.

Tram Power's plans in Preston are set to begin with the creation of a demonstrator line from behind West View Leisure Centre to the Miley Tunnel.

They aim to follow that with lines to the city's three park and ride sites in a £100m project.

In January, it was revealed the company was locked in talks with landlords about opening a site on the Lancashire Business Park in Farington, Leyland to create the tram building jobs.

But Mr Shields said talks are now at an advanced stage with the landlords of an existing engineering works in Preston, close to where they want to build an initial line, and they hope to shake hands on a deal soon.

He said: "We have been made an offer by a well-established business in Preston to share their works. We would get a lot of benefit from it being a fully-functioning engineering works."

>> For more, see Monday's Lancashire Evening Post