Labour councillors in Dundee say the city has been short-changed in Tay Cities Deal funding.
It comes after the Scottish Government announced it was providing another £50 million – £40 million of which will be spent on a new bridge over the Tay at Perth – to the £150 million it previously announced.
The remaining £10 million will be invested across Tayside.
The UK government is committing another £150 million to the Tay Cities Deal.
While councillors from all parties welcomed progress on the Tay Cities Deal, Dundee Labour group leader Kevin Keenan asked why the additional money was being spent on a project that could possibly be paid for through normal infrastructure funds.
He added: “The Scottish Government asked for £50 million from the Westminster government after Michelin announced it was to close.
“Now the majority of their £50 million if going to another local authority. It would appear to me that project could have been funded another way.”
Lochee Labour councillor Michael Marra said he had expected to Dundee to get money for a range of works, including dredging the river and creating a new quayside, as well as support for manufacturing in the wake of Michelin’s decision to end tyre production in Dundee.
He said: “I think the hope was Dundee would get the lion’s share of the £50 million or a very significant sum of money.”
Council leader John Alexander said he was still working to attract money to redevelop the Michelin site, in addition to the Tay Cities Deal funding.
He said: “I have made it clear we need to ensure the response to the Michelin situation needs to be additional and cannot dilute the Tay Cities Deal.
“That’s not to say there won’t, of course, be programmes within the deal which relate to industry, renewables, decommissioning etc, which ultimately complement our response to Michelin. It’s both, not either or.”
Mr Alexander said the council would continue to “push on every door” to secure additional investment for Dundee.
Dundee City East SNP MSP Shona Robison called on the UK Government to up its commitment.
“While the additional £10m for the Tayside industrial strategy is welcome, I would expect the Michelin workforce to benefit from this investment,” she said.
“It has always been clear that support for the Michelin plan would require resources beyond that contained in the Tay Cities Deal.
“It is critical the UK Government steps up given they have already short-changed the Tay Cities Deal by £50m.
“They must find additional resources for the industrial strategy, which would help the Michelin Steering Group deliver on the proposals they are working on, as well as assisting other developments such as Dundee Port’s ambitions for decommissioning and renewables.”
