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THE Welsh Government has been asked to save the Llangollen Railway from closure.
In a March 1 statement which sent shock waves through the UK heritage sector, the Llangollen Railway plc said that it was insolvent to the extent of £350,000, and could no longer legally continue to trade. Accordingly, the directors have had to take the “reluctant step” of inviting the bank to appoint a receiver/administrator.
The company's losses were said to stem from the contract engineering side of the business, where problems predated lockdown, and had seen owners remove their locomotives from the Llangollen workshops, including the Scottish Railway Preservation Society's LNER D49 4-4-0 No. 246 Morayshire (see separate story).
The plc statement said: “The company's accounts show pre-tax losses of £330,601 in 2018, £329,175 in 2019 and £258,804 in 2020 (pre-audit).
A number of significant engineering contract disputes, all of which arose in the years prior to the current board taking over in October 2020, have crystallised in the last few days.
“The claims against the company are compelling and are in excess of £250,000 in total. There is no prospect of meeting these liabilities, even over an extended period.”
Concerns
Fears have been sounded that the administrator will have to offer assets owned by the plc – including rolling stock – for sale, to meet the liabilities.
On March 9, the separate Llangollen Railway Trust, which owns the lease to the line and therefore the buildings (apart from those privately owned atr Glyndyfrdy and Carrog stations) and trackside furniture, issued a statement which said that the trust directors will be considering the options over the next few days and weeks.
The trust launched the first of its own SOS initiatives to rescue the line (see separate story), stating that “the plc was not yet formally in administration but that is simply a question of timing.”
The same afternoon, North Wales Member of the Senedd (MS) Mark Isherwood raised the dire plight of the railway in the Welsh Parliament and called for a Welsh Government statement of support for it.
Mr Isherwood, who has long championed the line and worked with it over many years, said: “The directors of this wonderful Welsh standard gauge heritage railway announced last week that they have taken the reluctant step of inviting their bank to appoint a receiver.
“The trust board stated it will need to take steps to negotiate with the receiver to try to secure the line and preserve rolling stock and infrastructure to the greatest extent possible. It is intended to recommence operations in due course, but this is dependent upon legal and regulatory approvals, including licensing, all of which will clearly take time.
“The impact this will have on their staff, volunteers, customers, suppliers, locomotive owners and their organisations, and anyone else with connections to the railway, is potentially serious, as is the wider impact on the visitor economy in Llangollen and throughout the Dee Valley.
“I have therefore been asked to raise this in the Welsh Parliament and alert the First Minister, and request a Welsh Government Statement accordingly.”
In her response, the Trefnydd (leader), Rebecca Evans MS, told Mr Isherwood to write to the deputy minister for culture, sport and tourism, which he was doing as we closed for press.
Clwyd South MP Simon Baynes, also a longtime supporter of the line, said: “I am very sorry that they have had to invite their bank to appoint a receiver, but the combination of Covid and past engineering contract disputes has put an intolerable burden on the railway.
“I hope, however, that a way forward is found for the Llangollen Railway so that it can emerge from this crisis with a sustainable long term future and continue to provide great pleasure to the many thousands of visitors to Llangollen in the years to come.”
The crisis erupted as the railway was completing its new Corwen terminus (see page 40) in anticipation of a highprofile formal opening this year. The new station has been hailed as having the potential to deliver major benefits to the local tourist economy.
As reported in issue 273, new boards for both the plc and trust were appointed on October 3, following mass resignations the previous week.
Reaction
Llangollen mayor Coun Austin Cheminais said: “The potential loss of such a valued company would be tragic – a heritage railway which has been restored and run by the endeavours of so many volunteers.
“For years, the railway, as well as being a treasured tourism attraction has provided valuable employment through its engineering works and has also had a positive effect on the careers of local youngsters who have benefited from their apprenticeship scheme.
“The council itself has limited funds to be able to offer any direct assistance, but will do whatever it can to ensure prosperity of the railway in the future and wishes the new board of directors well in their endeavours.”