PRIME Minister Tony Blair has said he will make further inquiries before he responds to arguments about the "vital importance" of the Merseytravel tram scheme to the region.

A five-strong delegation travelled to Downing Street yesterday in a bid to stop the Department of Transport pulling the plug on £170m government funding for the 11-mile Line One route.

Initially it was believed yesterday's 5pm meeting would be with rail minister and Halton MP Derek Twigg, who has already called for a fast resolution.

But the fact that the Prime Minister is now personally involved could offer hope of a more positive outcome for the scheme.

Although no decision was made, the group, including Liverpool city council leader Councillor Mike Storey, reported a "very positive" meeting with Mr Blair..

The discussion was arranged by Knowsley North MP George Howarth and Riverside MP Louise Ellman, whose two constituencies represent the two ends of the planned route, which stretches from Kings Dock to Kirkby.

Also present were Cllr Storey's Knowsley counterpart Cllr Ron Round, and Knowsley's chief executive Sheena Ramsey.

Last night Ms Ellman said the delegation spent 20 minutes arguing the case for the Government finance to be released, without which the scheme would collapse.

She said: "We explained the importance of the tram to Liverpool and our region, and why we felt it should be supported.

"Mr Blair was certainly interested and listened carefully to what we said, and said he would make further inquiries and then come back and told us what he thought.

"But there was no clue on what the response would eventually be."

Cllr Storey said the meeting had been "very positive indeed."

The move followed yesterday's noon deadline set by transport minister Derek Twigg for Liverpool and Knowsley councils to agree to pick up the entire bill for any future overspend.

On Friday, Liverpool's executive board joined Knowsley in agreeing to support a joint £24m contingency fund for the tram if costs rise above the current budget of around £280m.

But the question now is whether that is enough for the Government, who want guarantees that all cost rises will be met locally, a "blank cheque" that neither district is willing to write.

If the Government is not satisfied, it will not release the £170m it is contributing to the 11-mile route from Kings Dock to Kirkby and the project will collapse.

Merseytravel's plans to build a three-line tram network between now and 2010 have become increasingly troubled over the past year.

But since the Government unexpectedly refused to hand over its £170m contribution to Line One costs, Merseyside politicians have rallied around the tram cause.

alanweston@dailypost.co.uk