£2m needed to put cairngorm operation in peak condition

HIE denies mountain railway ‘cover-up’

By susy macaulay

Published:

A private company could be brought in to run Scotland’s only mountain railway after it was revealed that £2million is needed to bring it up to top condition.

Documents disclosed by the Forestry Commission Scotland (FCS) claim that the Cairngorm mountain railway has leaking buildings, is breaching sewage discharge limits, and lacks lifting gear to remove the train from the tracks for maintenance.

Bringing the facilities up to scratch could cost up to £2million in public money, the documents disclose.

It also emerged that if the railway had to close down for more than 12 months, it would cost £6million to reinstate the ground, and a £2.7million EU grant would have to be repaid.

Highlands and Islands Enterprise (HIE) still owns the Cairngorm estate after negotiations with FCS broke down last year.

Senior FCS official Hugh Insley said he was advised not to have any involvement with the ski area due to the “poorly maintained infrastructure on a highly designated area”.

He told colleagues: “The difficult issue is how to cover ourselves against future costs and liabilities related to the ski facilities.

“There is a very real risk that in their haste to tie this up, they (HIE) are trying to sweep some potentially big liabilities under the carpet.”

But the agency denied holding anything back from FCS and insisted it was best placed to own and shape up the estate until a private purchaser can be found.

An HIE spokeswoman said: “We were entirely open and all the information was freely available.

“Throughout its negotiations with FCS, HIE rigorously outlined the obligations and liabilities that would be attached to the estate’s responsible stewardship.

“The commission was made fully aware of HIE’s report on future options for ownership of the Cairngorm Estate, produced by independent consultants Bidwells in December 2005.

“It said the obligations which result from the 1997 planning consents are burdens upon the land and run with the ownership of the land. Although day-to-day responsibility for these rests with the tenants, HIE as proprietor is ultimately liable.

“In the long term, there seems little prospect of the tenant being in a position to underwrite the funicular reinstatement obligations and consequently this is a liability that will always rest primarily with the proprietors.

“As failure to comply with these obligations could ultimately result in the operation being closed down, in contradiction of the economic objectives above, any sale or transfer to a body unable to meet these obligations is undesirable.”

The spokeswoman stressed that HIE continues to pay for ongoing maintenance to the site, and that no plans were in place to close the railway, put the estate back on the market or transfer its ownership.

She said: “Upgrading the facilities has been calculated at £1million and further works such as the demolition of certain outdated facilities and removal from their sensitive environment could bring that figure closer to £2million. No decision to do this has yet been taken.

“It’s clear that we first need to form a diversification plan to ensure the financial viability of the estate.

“Having squared off the debt burdening CairnGorm Mountain Ltd when we took over its ownership, the business is a good going one, making money. It’s not a financial sink.

“We are now working on plans to ensure operations on the mountain continue to be an economic driver for the area while maintaining its sensitive environment.

intention

“When these plans are in place, it is HIE’s intention to attract a private operator for the funicular railway and to resume negotiations for the estate to move into alternative ownership.”

Local MSP Fergus Ewing said: “I met with Hugh Insley and his colleagues at the time of the FCS negotiations and they were well aware of the responsibilities involved. I think all this is the work of people and groups who have been against the funicular from the start.

“Of course there are maintenance issues with the railway, it would be astonishing if there weren’t when the Cairngorms experience some of the most vicious weather in the UK.”

He added: “The notion that HIE would deliberately cover something up doesn’t stack up.”

Highland MSP David Stewart said: “Clearly there are some serious allegations at the heart of what the FCS is saying and I will be writing to Sandy Cummings of HIE to identify solutions.

“A lot of public money has been spent on the project, and whilst I have always been behind the funicular to bring year-round tourism to the area, we need to solve financial issues and get to the bottom of serious allegations.”

Badenoch and Strathspey councillor Gregor Rimell said: “The state of the funicular is a technical matter, but from what I have seen of it recently it is excellent and I have every confidence in the management and particular regard for the staff who run it. Things could always be improved but I think someone is scaremongering.”