HRAreport: “BackWest Somerset plcboard – or buyabike”
AHARD- hitting Heritage Railway Associationreport into current issues at theWest Somerset Railway has backed the current plc boardas“the only viable game in town”.
John Bailey, who compiled the report, said:“Thereare fundamental defects in the present fundraisingstructure. Although theWest Somerset Railway Association ( WSRA), has commendably supported the plc by financing rail replacement, at the plc’s request, it remains the case that it is theWSRAthat decides what funds raised will be spent on. Indeed, were that not the case it would beabreachof its charitable status. However, spending priorities should be dictatedbybusiness need.
“I sense that there are those withinthe WSRA, possibly in positionsof influence, whogenuinely believe the railway should be onadifferentpathand that they arebetter suited to guiding its future. At its most extremeit seemsas if theremight even beadesire tosee the plc and its current management fail. It manifests itself in suggestions that the railway should be run in an alternative morecollegiate fashion with greater member influence, or even control.
“To those who aspire to the demise of the plc, and its current board, I can only saybecareful what you wish for. If the plc fails and goes into administration or liquidation its lending bank holds securityover all theplc’s physical assets. An administrator or liquidator acting for the bank could not realistically sell the business asaheritage railway.
“The essential operating licence lies within the plc and would not be transferable. It doesn’t matter how much expertise theremay be in the WSRAor elsewhere. It would be impossible to haveanew licensed structure inplace in time to keep the operation afloat.
Cyclepath
“In the event of the demiseof the plc the obvious course for the bank ( who owe a fiduciaryduty to their own shareholders) would be to ripup the track for scrap, turn the trackbed into ano- doubt very attractive cyclepath which could provide a substitute and more environmentally- friendly tourist attraction.
“Myadvicetothosewhowish to see theback of the current plcmanagement must be– back them or buyabike! Whether or not people like or approve of the currentmanagementof the plc they arethe only viablegamein town. Withacombined plc shareholding of around20% the twocharity shareholdersand Somerset County Council arenot inaposition to influence or dictate the direction of theplc. Were it not for the current boardof the plc the railwaywould inall probability already have ceased to exist. They took on an insolventbusiness and turned it round so at least it has a fighting chanceof surviving the lockdown. Instead of personal attacks theydeserve recognition forwhathas beenachieved and, above all, support infuture.”
Steps arecurrently underway to reestablish the Partnership Development Group of theWSR‘ family’( the Diesel and Electric Preservation Group, Somerset& Dorset RailwayTrust ( SDRT), WSRA , the plc, West Somerset Steam RailwayTrust ( WSSRT) and the Friends of the Stations groups) together with local authorities forwho the railway is a key part of the tourist economy.
Aplc statement said that it
“warmly welcomes the report’s recommendations and intends to commence a consultation process with its own shareholders. The consultation will specifically cover the recommendation to consider the creation ofanew incorporated charity, where the charity owns the physical assets and contractswith a controlled subsidiary to run the railway.
“The charitycould set broad strategic objectives for the operating company, but the subsidiary’sboardwould be free, within those objectives, tooperate the business against a requirement to generateannual surpluses to be paid over to the charity. Akey part of any transition process would be to secure agreement fromplc shareholders to vote in favour of exchanging transferable shares formembership of a charitywith appropriate voting rights."
Discussion
AWSR statement said:“Weare very grateful toJohn Bailey for the comprehensive report and wise comments. Clearly, the changes suggested will be challenging, and need to involve the willing participation of the railway family. WewelcomeJohn’s offer to facilitate a familydiscussion as a first stage and urge allmembers of the family to take up the offer.”
Meanwhile, initial talkshave been held between the plcand theSDRT to discuss the futureofWashfordstation. TheSDRhas been givenayear’s notice to quit the station, the plc citing safety issues that visitors had reportedtothe Office of Rail and Road. In late June, plc chairmanJonathan Jones- Pratt said the twoparties had an initial teleconference meeting, facilitatedby the HRA, and a sitemeetingwould nowtake place.
He said:“A frank and constructive review of each party’s objectives included confirmation of aneed to urgently discuss the long- termfuture of the trust’s 7F 2- 8- 0No. 53808, currently hired to the WSR. Both parties share the desire toachieve a mutually- satisfactory outcome.”