■ Double boost for West Somerset line closure
THE West Somerset Railway ( WSR) has been given a welcome double financial boost just at a time it needs it the most- when its closure due to the coronavirus pandemic has forced it to issue precautionary redundancy notices to 42 of its staff.
Firstly, draft trading results by WSR pie show a profit of £ 311,217 for the year 2019/ 20 - compared with anticipated year- to- date forecasts for the end of March of just £ 83,823.
Secondly, the line's two emergency appeals - launched by the WSR pie and the West Somerset Railway Association - to offset running costs during the Covid- 19 closedown had, as we closed for press now raised almost £ 156,000- nearly a third of the £ 500,000 target.
A statement from the railway regarding the trading results said: "This clearly illustrates a complete sea change for the railway's financial performance when compared with recent years when the WSR was clearly in steep decline, culminating in a near £ 800,000 loss for the turbulent year of 2018/ 19. However, with a determined new chairman and board of directors in place, who set about charting a new course for the railway, the situation has been turned around to the good again.
"While this figure excluded cash held on behalf of other organisations, together with a sum of£ 100,000 still being held by the pie pending the acquisition of the Bishops Lydeard shop and cafe, the pie was still some £ 258,000 ahead of forecast:'
WSR pie chairman Jonathan JonesPratt commented:" AII of this fantastic turnaround in the WSR's fortunes has been achieved during a 19- month period since September 2018 by the reinvigorated pie board, our dedicated staff and volunteers, our active support organisations and advisors, plus shareholders, supporters and stakeholders, all of whom are all part of the greater WSR ' family' and whose great team efforts have succeeded.
"This is just the sort of confidence booster we and our supporters needed, and proves that we are once more on the right track.
"Were it not for last year's good trading figures and profits, the railway simply would not have been able to keep going, and would have gone into liquidation - but we still need more cash, help and support to survive.
"Members of the WSR board understand that there have been concerns over the new direction the railway has taken in the last year or so. We hope the financial results speak for themselves and go some way to reassuring our supporters that the board has the best interests ofthe future of the railway at heart, and is actively striving to build on this success in these unprecedented times.
"In a normal world, we would now all be busy celebrating this huge achievement and sharing it loudly with our staff and supporters as they have made such a huge contribution to the railway over this last 12 months.
Cost reductions
"Now, we find ourselves in the middle of a global pandemic. The railway and all its ancillary activities are closed. We have had no option but to place the majority of our staff on furlough and have now also had to issue at risk of redundancy notices to 42 of our 45 staff and we are doing our utmost to reduce other costs.
"Without this action, we would be losing well over £ 100,000 with each month that passes, and the money we have made would be very quickly gone, leaving our coffers bare.
"With the restrictive current Government social distancing measures in place, it is very difficult to see how we will be able to run trains and cover costs in the foreseeable future and our season is simply ticking by with no income.
"I have already highlighted to everyone, especially our staff, that it is very unlikely that we will be able to operate again now until next year. That was a very hard decision to consider, let alone make.
"Regrettably, Covid- 19 has hit us just as we were about to turn the corner into a brighter future and it now represents the biggest threat to our railway yet seen since the line was closed by British Rail in 1971.
"So, once again, and for the second time in two years, we see it as our clear and unshakable responsibility to ensure that the railway is safeguarded financially so that we are able to run again when things do eventually change.
"Each month that passes sees our cash reserves reducing and we are acutely aware that these are running out. That's why we have had to issue redundancy notices to our loyal staff sadly; are looking at every item of expenditure; and why the emergency funding appeal is so vital:'
The 'surprise' annual profit was announced weeks after Bridgwater and West Somerset MP Ian LiddellGrainger called for' frank and meaningful' discussions on the future of the railway in the wake of the possible redundancy warnings.
He issued a press release which said:" The West Somerset line is regarded rightly as one of the jewels in the Somerset tourism crown and thousands of people will be saddened by the fact that they will be denied the chance to travel on it this year.
"It is clear there needs to be a long and detailed look at how the railway is run and its financial state - and some frank and meaningful discussions about the future.
Criticism
"The company must come clean about the costs of the outstanding track repairs that need to be done and all its other liabilities so that everyone knows exactly where it stands. Unless there is confidence in the future of the WSR, then the owners of locomotives and rolling stock currently leased or loaned to it are likely to start removing them, which would make cranking up services again even more of a challenge'.'
Jonathan responded:" Mr Liddell Grainger has claimed to support the WSR yet, despite many offers from us in the past to meet him to discuss our position, he has never come to us first to air any concerns he might have in seeking to learn the truth from the ' horse's mouth; so- to- speak.
"However, I'm pleased to report that he agreed to a video conference call with us on June 3, where we could set out the true facts to him at last. Given the scale of the Covid- 19 crisis nationwide, our situation is not unexpected news either as it'll be exactly the same one that many other heritage lines are facing too. Tourism is facing a huge hit from this and we need help not brickbats, so we're hoping to get some commitment and actual support from the MP."
A railway spokesman said that the possible redundancy letters were sent in the event of a "worst- case scenario;' adding:" We certainly do not wish to lose any of our skilled workforce if possible, but we have to be realistic too and protect what we have. It's nothing more than that at this stage and normal practice in crisis situations like this but been dictated by the changed furlough regime which now ends at the end of July for payment of80% of wages, and then carries on until October at a lower rate with contributions expected from employers:'