West Somerset rejects radical proposals for new structure
PROPOSALS to create a new charity-led organisation to run the West Somerset Railway (WSR) will not be given the green light at the present time.
The WSR plc board of directors has decided not to create a new incorporated charity to own the physical assets of the railway, with a controlled subsidiary to operate the line.
The draft proposal was developed in detail following the completion last May of a hard-hitting independent report, compiled by John Bailey on behalf of the Heritage Railway Association, into conflicts and acrimonious disputes between different groups within the WSR umbrella.
At a full board meeting on March 30, directors ratified an earlier decision made at an informal seminar and “concluded that it is not appropriate to continue with this far-reaching proposal at the present time.”The board was supported by lawyer and former HRA chairman David Morgan, who is also president and a former chairman of the WSR plc.
Restarting operations
A statement issued by the WSR plc read: “The entire railway community is currently heavily committed to restarting our operations. This involves extensive work by many individuals across the railway; this is not going to be a normal start-up operation and requires considerable extra work beyond that normally undertaken for the seasonal reopenings of the past. It is the view of the board that attempting to take forward work now to establish a brand-new organisation is not something that would be sensible at this time, especially in light of the challenges facing both the WSR plc and the wider WSR railway family over the next 12 months.
“Although much sound progress has been made with our earlier financial recovery plans from 2017-2019, the railway has not yet fully recovered from the financial operational challenges of these years before the Covid pandemic. This is going to require significant further retargeting of our activities.
“Attempting to reposition the WSR plc now as a subsidiary organisation of a brand-new charity, complete with all the attendant financial risk around assets, accountability and financial responsibilities, is not something that the WSR plc board feels it can support.
“The plc board is also not convinced that the proposals being put forward to implement the suggested Bailey reforms will necessarily deliver the anticipated full range of benefits required to justify the scale and scope of organisational change at this time. It feels that the current restructuring proposals are just one of a series of possible options to be considered, and which need to be much more carefully explored.”
Shareholder response
An outline questionnaire was circulated to all 8,311 WSR plc shareholders seeking their views on the Bailey reforms but only 391 shareholders responded, representing just 4.7%.
“It is evident from such a level of response, therefore, that there is scant shareholder support for these suggestions,” the statement continued.
“The board felt it was important to have the views of shareholders on this matter, and in the interests of the PLC and its shareholders, it considered that the response rate was too low to justify taking further action on the proposals at the present time.”
The board also stated that the likely cost of implementing the proposal would run into six figures and in the current climate would not be a “sensible use” of the plc's limited resources.
Also, there would be the need to convince the Office of Rail and Road (ORR) as regulator and other key stakeholders that the proposals would not only fully deliver significant additional benefits over a long period of time, but also that they will not impede the corporate responsibilities of the plc for the safe and effective operation of the line and the stewardship of its assets.
“The board considers that such a case has not been made convincingly,” said the statement. Directors also remained unconvinced
“There will be a difficult journey ahead for us, but I am certain that when we pull together, we will succeed.”
that implementing the proposal would boost external fundraising.
Mr Morgan said: “The WSR plc board considered these matters very carefully when we met and given the present circumstances, I consider this was the right decision.
“It is crucial for the successful development of the railway that the board, together with all the WSR partners, now devote their full energy to ensuring the successful commercial redevelopment of the railway itself post Covid lockdown.”
WSR plc chairman Jonathan Jones-Pratt said: “We realise and recognise that some of those who have worked on this initial feasibility investigation will be disappointed, but we believe this is the time that all members of the railway family really need to work together and focus on getting our wonderful railway back in action first and foremost.
“There will be a difficult journey ahead for us, but I am certain that when we pull together, we will succeed. We have come through challenging times in the past and we can again.”
Trains to Williton
One controversial move by the board was the decision to give the Somerset & Dorset Railway Trust a year's notice to quit Washford station, its home of 45 years.
WSR services resumed on May 22, operating out and back from Bishops Lydeard to Williton only, with stringent social distancing including pre-booking, carriage cleaning between services and at-seat catering arrangements, with WSR Mogul No. 9351 hauling the first train.
Extensive key infrastructure works between Williton and Minehead have yet to be completed, including the rebuilt Seaward Way level crossing at the resort, before trains can return there, hopefully by mid to late September.
Services had been due to restart on March 20 last year, but lockdowns prevailed and other than 'Santa Specials' in December, the WSR has undergone the longest closure in its 45-year history since first reopening as a heritage line in 1976 from Minehead to Blue Anchor.
The railway now has to generate enough money to get it through the next winter.