MINEHEAD CHAIRMAN OUSTED AFTER FINANCIAL WARNINGS
‘Popular’ chairman sacked after claiming that job losses were needed.
The West Somerset Railway plc is without a chairman after previous incumbent, Ian Coleby, was dismissed in the wake of his warnings over the railway’s financial situation. Mr Coleby, who had been chairman since December last year, was removed from office on August 23. It follows a dispute between the plc and the West Somerset Railway Association, in which two of the latter’s trustees – Frank Courtney and Rodney Greenway – were removed as directors from the boards of both bodies earlier in the month.
It is understood that Mr Coleby’s dismissal is a result of both that situation and his address at the company’s annual general meeting on June 23, in which he proposed reducing the railway’s estimated £1.2 million wage bill in order to secure the line’s finances.
In his address, Mr Coleby said: “Whilst there is no immediate danger for the company, it would be irresponsible not to look to the future, to trim our costs and to see how best we increase and grow the commercial income side of the business.
“At our May board meeting, we agreed to undertake a review of the management structures. This review is driven by the financial urgencies and aims to reduce the cost of managing the company. There is no point in sugar coating this, it might mean that we lose some jobs from the business. “This is never a comfortable thing to do and if we do this, we will do it in an open and fair way. But I do need to emphasise that unless we reduce our costs and increase our revenue streams, then the future of the railway will be in doubt.”
A source told Steam Railway: “The railway is in a challenging financial situation and needs to cut costs. Ian has been championing a process to make some staff redundant. This move is unpopular with one faction of the board. “Frank Courtney and Ian fell out in May and Frank resigned from the plc board. He became a WSRA trustee in early July. He was co-opted back onto the plc board against Ian’s will in late July. “The WSRA objected to this co-option and proposed a resolution to remove Frank and his friend Rodney Greenway from both the WSRA and WSR plc.
“The plc board asked Ian to speak out against this resolution but he did not do so and the two were sacked as WSRA trustees. They blamed Ian for this – if he had spoken out then they might have been saved. The reason he did not speak out is because he believed in the WSRA’s right to elect or remove their own trustees without outside interference.
“At the plc board meeting on August 23, Ian was sanctioned for not speaking out and not supporting his own directors. The faction who are against cost-cutting and redundancies also wanted him out. Together they mustered just enough board votes to sack him.
“The plc now no longer has a chairman as no other board member will take it on. There is uproar on the railway. Ian was a very popular chairman who had the good of the railway at heart.
“He carries a great deal of respect and many volunteers have confidence in his ability to recover the railway’s finances. Many want him to be reinstated and are openly calling for that to happen. There is currently an impasse between the WSRA and the plc board who now appear to be paralysed.”
At the time of going to press, there was still no permanent replacement for Mr Coleby as chairman of the WSR plc, although he remains a director on the plc board. Speaking after his dismissal, Mr Coleby – a WSR volunteer of 35 years – said: “Throughout my time as chairman I have acted at all times to promote the principle of ‘one railway’ where all the different groups on the line work closely together for its success. Teamwork really is the only way and the latest dispute, of which I am now a victim, can only harm the railway.
“It is incumbent on all of us to overcome our differences, put our personal feelings to the side and work together to ensure success. I support all the various organisations on the railway and I support their joint efforts to work together.
“I explained at the AGM that the railway is in a very serious financial situation and some tough decisions need to be taken to get us back to stability. Our costs are far too high and we must grow the income side of the business. Above all else, taking those decisions and gaining financial security is critical. This need trumps everything else and is where we should be totally focused.”
Steam Railway has approached the board for comment. ●● It is not the first bitter dispute at the WSR. In 2013, the association attempted to purchase the freehold of the line from Somerset County Council (SR417) in competition with the plc. This led to the removal of six association trustees, including former chairman David Williams, in February 2016 (SR452). Frank Courtney was chairman at the time the trustees were dismissed.