Trust steps in with £300k loan after East Lancashire faced bankruptcy
THE East Lancashire Railway (ELR) has been thrown a £300,000 Covid-19 survival lifeline by its landlord.
The ELR Trust – which owns the land and leases the railway line to the ELR – has given it a £300,000 interestfree loan to cover its overheads for the remainder of the winter period, while providing moral support to its staff and volunteers.
A charity made up of four groups of trustees including the three local authorities the railway runs through – Bury, Rochdale and Rossendale – the ELR Trust has been overseeing the successful development of the line for more than 30 years.
The railway turned to the trust for support after lockdown measures resulted in an extensive number of cancelled services and events. Apart from a short few days leading up to Christmas, it has been closed since November.
Furthermore, it was unable to run its popular Santa specials in December due to local coronavirus restrictions, depriving it of its most important income source of the year.
Railway chairman Mike Kelly said: “We're incredibly proud of the timeless experience the ELR provides for hundreds of thousands of visitors a year thanks to our dedicated staff and volunteers.
“However, the coronavirus pandemic has forced us into an extremely challenging financial situation. Successive lockdowns and tier restrictions have taken their toll and deprived us of crucial visitor income.
“Restrictions also meant we were unable to run our Santa special trains, an enormously popular event, which was extremely disappointing, and without this income we were reduced to facing the prospect of bankruptcy.
“As we enter 2021, with no certainty on when we can reopen, significant financial challenges still persist.
“Therefore, we are incredibly grateful for the support from the ELR Trust and this precious lifeline of a timely and generous £300,000 loan, which gives hope for the future.”
ELR Trust chairman Brian Davies said: “Covid-19 has devastated charities like the ELR right across the country. However, for the trustees there is only one ELR, and we will do whatever we can in our power to make sure this beloved railway survives.
“The loss of the railway's Santa specials was devastating to the ELR's sterling fight for survival.
“Throughout the past 12 months, the trust has been kept fully informed of the huge efforts being made by the staff and volunteers in seeking external support through grants, loans and securing donations. Now it's our turn to step in and show our support and confidence in the future of the ELR, especially its loyal staff and many hundreds of volunteers.
“The trustees were very pleased that some of their funds could urgently be made available to get the ELR through these difficult next few months until it can reopen and do what it does best – offering a unique glimpse into a bygone era of the north west's industrial powerhouse through steam and diesels trains.”
Coun Jane Black, cabinet member for the cultural economy at Bury Council, added her praise. She said: “This is great news. The ELR is a marvellous attraction enjoyed by many people of all ages.
“I hope this loan will enable the railway to get through the next few months and plan for the future.”