HRA CALLS FOR CLARITY OVER GOVERNMENT SUPPORT
Wage pledge welcomed but more detail requested as staff are laid off owing to pandemic.
The Heritage Railway Association has called for clarity over the Government’s pledges to assist businesses and employees during the coronavirus pandemic, and what benefit these will be to Britain’s steam railways.
Hundreds of jobs across the preservation are under threat owing to the pandemic. Speaking to Steam Railway on March 20, Ffestiniog & Welsh Highland Railways general manager Paul Lewin said: “It’s already had a dramatic effect, as we’ve had to lay off all of our seasonal staff, so now we’re looking at trying to protect our 97 members of permanent paid staff. We are now just waiting on communication from the Government as that could make a world of difference. “We have done scenario planning, but if we cannot find alternative funding, then all those jobs are at risk.”
The North Yorkshire Moors Railway has been badly hit. The line’s general manager, Chris Price, told Steam Railway: “People look at us with envious eyes, but we’re a big operation and that means we have big costs – it costs 22p a second to run the NYMR.
“Right now, I’m not preserving a railway, this is about people’s livelihoods now. I just want my staff to be looked after.”
Fears have been allayed somewhat by the Government’s pledge to pay 80% of staff wages for both businesses and charities for those who are kept on the payroll but are furloughed (i.e. not working) for at least three months, though Chancellor of the Exchequer Rishi Sunak has said that this scheme may be extended where necessary. Other governmental business support includes an interest-free Coronavirus Business Interruption Loan scheme and relaxation of business rates.
HRA CEO Steve Oates said: “We welcome today’s [March 20] announcement on support for retaining salaried employees, and the earlier news of business rates holiday for retail, hospitality and leisure businesses, and the grant funding geared to rateable values.
“But, many heritage railways don’t pay business rates, so may not benefit. The new Coronavirus Business Interruption Loan Scheme will help some, but more than a few railways already have loans, and may not be able to cope with more.”
Speaking to Steam Railway,
Mr Oates added: “The wage relief grants are very much welcomed, but they don’t address the key underlying issue which is, how are ongoing base costs going to be covered? The Government could be doing more in this regard.
“For instance, are charities allowed to utilise restricted funds? Can the current rules be relaxed so charities spend those funds accordingly to survive?”
Mr Oates said the HRA was working with the Tourism Alliance and the Department of Digital, Culture, Media & Sport for further government support during the crisis, but warned: “There are various things we are asking, but the Government cannot have all the trade bodies like ours hitting them at once; they’ve got enough on their plate for now.”
Regarding the HRA’s response to the pandemic, Mr Oates said: “We’re providing railways with regular and frequent updates on Covid-19, with guidance and advice to meet the particular needs of railway operation in mind. We’ve also provided a business resilience action plan, to help railways plot a path through the threats and risks posed by Covid-19, and we’re talking to many of our members on a daily basis, providing advice and, equally important, gathering information.
“We’re calling on our members to work together, to share experiences and ideas, to work towards common solutions wherever possible, to provide practical aid to each other, and to form a single, powerful voice.”