SOUTH TYNEDALE IS SEEKING ADVICE AS LOSSES MOUNT UP
Railway looks for an informed assessment of its options as an uncertain future looms.
The South Tynedale Railway is seeking financial advice and exploring options for its future after suffering “year on year” losses.
In a letter to STR Preservation Society members, the society’s acting chairman David Granath said: “It has been evident for some time that the railway is losing money year on year and this situation cannot be allowed to continue. The trustees have therefore taken the decision to seek professional financial advice on what options there may be for the future of the railway.”
He added that, as the railway will likely remain closed until 2021 owing to coronavirus, “it is with great regret that the remaining members of paid staff will be made redundant at the end of August.
“We hope we can stabilise the situation and plan a way forward for the railway to swing back into action in 2021 but no one can be in doubt that it will be a tough challenge. We have some emergency support funds from the Heritage Emergency Fund [HEF] to see us through the rest of this financial year and we have also received generous donations from supporters made through our website.”
Speaking to Steam Railway,
Mr Granath explained that the STR’s financial situation “was only moderate at the beginning of the season and was made much worse by our inability to earn any money due to the pandemic.
“Running trains this year proved, after analysis, to be financially unviable. We could only achieve about 25% train occupancy with social distancing.”
Despite the current problems, Mr Granath said that he “would absolutely not start to speculate about the permanent closure of the railway,” adding: “We are talking with various stakeholders and funders about how they can help us move forward. The question we have to address is whether we can run a volunteer-only railway in the compliance-heavy world of the 2020s or whether we have to employ some staff. All this is for discussion over the coming months.
“Sadly, we have had to let six members of staff go. At present we do not know the future staffing structure of the railway.”
Mr Granath added that he did not believe that the line’s recent extension to Slaggyford, which opened in July 2017 (SR470)
“had any adverse bearing” on the current situation and that the STR’s ambition of extending to Haltwhistle “remains a long-term goal, but it is long term. If we could run services on the existing line for a couple of seasons and at least break even that would be a huge achievement and that is what we are focusing on.”
Having received £49,400 from the HEF earlier in the year, the STR is now applying for support from the Art Council’s Culture Recovery Fund. An HEF spokesman said: “We are keeping our support under review in line with the challenges facing heritage organisations and are happy to discuss possible next steps with them.”
●● To support the STR Covid-19 appeal, visit www.south-tynedalerailway.org.uk/covid-19-appeal/