The greatest threat to heritage railways in 70 years
ON JANUARY 31, two members of a family of Chinese nationals staying in a hotel in York became the first confirmed cases of Covid-19 or coronavirus in the UK.
Two months later, the country was in lockdown as the virus spread, with the daily death toll having reached into the hundreds.
In a bid to slow the spread of the killer virus, Government guidelines severely restricting the movement of people with the sole aim of saving life have quickly impacted on every aspect of everyday life, in a manner not experienced in living memory.
It has been said that the impact of coronavirus on our society will be felt for years to come.
In our sector, heritage railways
– a bastion of the nation’s tourist economies – have been brought to a standstill, as a direct effect of emergency measures.
As we closed for press, all heritage lines had closed until further notice, and main line railtours had all been cancelled.
However, even though no trains are running, costs continue to mount, plunging them towards, or into, the red. Insurance, utilities, salaries, loan repayments, rent and rates all have to be met.
Labour shortage
Manpower is in short supply as volunteer staff, on which the sector largely depends, and some safetycritical personnel, are heeding advice on social distancing and self-isolation.
Even though a railway is closed to the public, the guidelines are placing severe restrictions on essential maintenance tasks which need to be carried out, not least of all security (as the East Lancashire Railway found to its great detriment – see separate story), and never mind restoration projects.
The crisis is being seen as by far the worst to hit the sector since the first heritage line, the Talyllyn Railway, was taken over by volunteers nearly 70 years ago.
The Heritage Railway Association (HRA) is working to ensure that their members, key players in the country’s leisure and tourism sector, receive meaningful support of the same kind as that available to transport and holiday operators, hotel owners and theme parks. The sector’s trade body is calling for clarity on issues specifically related to heritage rail, particularly on the treatment of charities, payroll support, and insurance cover.
HRA CEO Steve Oates said: “We’re also 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, of course, we’re talking to many of our members on a daily basis, providing advice and, equally importantly, 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.”
The HRA has contacted all its railways and museums, gathering information on estimated losses, cashflow predictions, the kind of support they seek to see them through the pandemic, and an outline of the measures they are taking in an attempt to minimise the financial impact.
Specific support
Industry representatives attended a meeting of the Tourism Industry Council meeting on March 17, where specific support measures were called for and relayed to Chancellor of the Exchequer Rishi Sunak. Those measures included urgent access to funds; salary and redundancy support; relief not only on business rates, but on VAT and PAYE; mandatory closures of attractions, to enable insurance support to be provided; continuing business advice for tourism and leisure, and clarity on definitions.
The HRA subsequently welcomed further guidance on the rules relating to the temporary coronavirus job retention scheme and furloughing (giving staff a paid leave of absence) designed to support employers whose operations have been severely affected by Covid-19.
Employers can use a portal to claim for 80% of usual monthly wage costs, up to £2500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that wage.
Any UK organisation with employees can apply, including businesses, charities, recruitment agencies and public authorities.
A statement from the HRA issued on March 28 said: “This answers some of the queries we’ve received and is undoubtedly a move forward. However, it still doesn’t address a number of questions and issues raised with us by members, especially the concerns about the need for people to carry out ongoing maintenance and security on sites, and ensuring rolling stock, infrastructure and sites are ready to reopen when the time comes.
“The HRA, together with other trade associations, are still seeking answers on these.”
Cautious welcome
While Steve welcomed the earlier news of business rates holiday for retail, hospitality and leisure businesses, and the grant funding geared to rateable values, he said that 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,” he said.
“We’re working with the Tourism Alliance and the Department for Digital, Culture, Media & Sport to confirm that heritage railways, tramways and cliff railways are included in the Government’s definition of the leisure sector, and can thus benefit from the £330 billion support being made available.
“One of the certainties of the Covid-19 pandemic is that the situation continues to change very rapidly. The HRA is now constantly monitoring every useful source, to ensure its guidance and support is timely and realistic.
“Heritage railways operators are all resourceful and resilient railwaymen at heart. Overcoming challenges is part of the business of building and running a heritage railway, and I know our members will meet this challenge as robustly as any other.
“Now’s the time for the HRA to help our members hold and work together, share ideas, help with each other’s technical and business questions, and speak with one voice.
“Putting emergency business measures in place will help railways to reduce their sense of uncertainty. And there will still be staff with work to do, volunteers who want to help and, before long, families looking for some leisure and entertainment. Being ready for their return is the goal of every railway’s survival plan.”
Appeals
Many railways big and small have issued appeals for donations to plug the financial deficit caused by not being able to open for an indeterminate period, with major lines like the North Yorkshire Moors and Severn Valley railways fearing for their existence.
In this issue, we have published the appeals that we have received so far – and are urging readers to respond in any way they can, in what is the heritage sector’s greatest hour of need.