“Claims that the funicular railway is reliant on public money are totally absurd and without foundation”
(Fergus Ewing MSP, 21 Dec 2000).
Perhaps the greatest skill possessed by Highlands and Islands Enterprise is their ability to dupe most of our politicians, of every political party, in the European Parliament, Scottish Parliament or Highland Council. Never in the history of Scotland has so much wool been pulled over so many political eyes by the fairy stories told by HIE.
In 1999 the Bank of Scotland had to decide whether to confirm its support for the funicular project being promoted by its client, the Cairngorm Chairlift Company and their backers, Highlands and Island Enterprise. The Bank were aware of mounting public opposition. As head of the Ramblers’ operations in Scotland I organised the “Funicular White Elephant” protest at the Bank’s Annual General Meeting in Edinburgh. That protest led to discussions with the Bank’s CEO, Peter Burt. The conclusion was that the Bank would reconsider its support for the funicular and instead propose a more ambitious project, involving new chairlifts and perhaps gondola uplift instead of a funicular, and would offer additional funding in support of this.
We agreed to put these proposals together to the Scottish Executive and a meeting was arranged with the relevant minister, Labour MSP Alasdair Morrison. At the last minute we were told that the minister was cancelling the meeting because the funicular was a “done deal”. We could therefore assume that planning approval was about to be issued and a modification of the funicular project was not possible. Being a “done deal” meant that the project had already been approved in principle as part of a secret list of projects that were going ahead. These “done deal” projects had been drawn up as part of the coalition agreement made between Labour and Lib Dem politicians as they established the Scottish Executive in the early weeks of the reconvened Scottish Parliament. Shortly after this the planning minister, Sarah Boyack, confirmed the planning approval and the First Minister, Donald Dewar, signed off £2 million in additional public funding support for the funicular.
In 2000, as the funicular was under construction, it was claimed by the development interests that less than £15 million of public money would be required and this would in effect be an “investment”, not a grant:
“the bottom line is that the money HIE have put into this project is an investment rather than a grant, so they will make money on this”
(Bob Kinnaird, newly appointed CEO of the Cairngorm Chairlift Company – this and other quotes below from the Strathspey and Badenoch Herald, 21 Dec 2000).
My view at the time was that a huge number of people, all the way from Chairlift Company staff to the First Minister, had been duped by HIE. Massive amounts of public money had been approved in support of a project that was very high risk in engineering, operational and environmental terms, with none of those risks examined through public inquiry process.
In addition I knew, from my own skiing experience and contacts within the skiing industry, within Scotland, the European Alps and North America, as well as the local business community, that there were major doubts as to whether a funicular in such a location would actually benefit downhill skiing on Cairn Gorm. I said:
“It is vital that government ministers initiate an independent review of this project. Everyone needs to know how much more public funding will be needed on Cairn Gorm over the next 25 years, and where it will come from. Scottish taxpayers and Highland Council taxpayers are going to regret that HIE embarked on its wild adventure in the Cairngorms.”
At the same time the local constituency MSP, Fergus Ewing, said:
“Claims that the funicular railway is reliant on public money are totally absurd and without foundation…this is a commercial project and the chairlift company will have to pay substantial money back.”
Today his constituents in Badenoch and Strathspey are probably wondering why, as an opposition SNP politician, Fergus was not trying a bit harder to hold the Labour First Minister to proper account back in 2000. Perhaps he was also bamboozled by the HIE spin machine and had fallen for their fairy story. Today, 18 years later, the key questions are how much public funding in total has been paid to support the funicular planning, construction and operation and how much have the skiing operators paid back? One suspects the public funding deficit is enormous, and growing.
Ten years ago Ed Douglas, an investigative journalist, claimed:
“The funicular’s costs are now comfortably in excess of £30 million. That money won’t be recouped. Every year it remains open will add to that figure, unless the business can be turned around.” (TGO magazine – The Great Outdoors – Oct 2008).
Ten years later these public funding costs continue to rise. Meanwhile the three Directors of Natural Retreats, the operating company appointed by HIE to run the Cairn Gorm facilities, appear to be receiving annual payments in excess of £300,000 (in total) (see here) while over 50 local ski instructors and other staff have been told by Natural Retreats that they have no employment this winter. HIE’s fairy story has become a tragedy.
So, for any politician keen to ask the necessary questions today in the Scottish Parliament, the good news is that the person who has to answer is …. Fergus Ewing MSP, as the Cabinet Secretary responsible for HIE! Perhaps he can explain why, when everyone from the CEO of the Bank of Scotland to a ski instructor on Cairn Gorm, believed the funicular might well be a doomed project, he carried on dreaming. Now he and HIE are stuck on the mountain, deep in a cesspit, with little hope of rescue. Some ideas on how to escape from this nightmare would be appreciated, before the reputations of both HIE and the Cabinet Secretary are destroyed by the funicular millstone hanging around their necks.
The funicular is clearly the root of all the problems on Cairngorm…
The huge £20 million investment needed to be justified – which meant getting bums on funicular seats. New train-set had to be a success even if it meant sacrificing the other parts of the business (or indeed the 4 other Scottish ski area)
The obvious problem with the funicular has always been the VMP. From ecological perspective it makes sense to stop people leaving the top station onto the fragile Cairngorm plateau. However from economic perspective that makes the funicular an inherent busted flush : repeat custom from hikers / bikers was always limited by closed system. Once you have been up train and seen the visitor center then why go back ? As use of public funding it was totally flawed and didn’t get people participating in outdoor sport : Yet even today HIE try to throw good money after bad – as seen in recent proposals for a bigger Ptarmigan building etc.
In 2005 the core lift policy was direct result of the ski area being unable to meet the funicular debt repayments to BofS.
This lead to a reduced ski area, which crucially couldn’t make money / attract numbers when the snow did arrive.
Meanwhile the other 4 Scottish ski areas could attract any public funding because HIE & banks had their fingers so badly burned by the funicular.
Ultimately the funicular was the wrong type of lift to build in the wrong place.
There is no obvious way out of the mess. Repairing the funicular is now rumored to cost £10 + million.
However even if it fixed it still wont make money nor be suitable for skiers.
Perhaps time to think big. Make Glenmore a car free zone. Extend the steam train track from Aviemore to Loch Morlich for access. Build a Glenmore gondola to Coire Cas that can be used year round by bikers / hikers / skiers. It would cost mega-bucks : but would give Scotland a proper national park it could be proud of….
Some good ideas here but the closed system should not be blamed for the economic failure of the funicular. As you indicate, the closure of the ski lifts (plus I would add problems with uplift speed, queuing and intermittent operation of the funicular) are the primary problem – as a central belt based skier Cairn Gorm is now at the bottom of my list of destinations for a day on the piste – I would always choose Glenshee, Glencoe or Aonach Mor before Cairn Gorm because I would not be confident that the uplift would be working properly at Cairn Gorm and, even if it was, the queuing might be terrible. On the other hand, if I wanted a day touring, then CairnGorm would rise up the list as I might fancy a climb up Coire na Ciste or the corries west of Coire Cas to access the upper slopes.
To my mind fixing the funicular is not now the top priority for public expenditure. It is much more important to secure alternative means of access to the upper slopes so that, however well or badly the funicular runs in future, we will not be dependent on it in the winter season. I think the top priority is to build chairlift access from both Coire Cas and Coire na Ciste to the bottom of the Ptarmigan Bowl. Those chairlifts would meet at the same location where there would also be a small café/shelter facility. The location would be close to what used to be known as Ice Station Zebra, grid ref 003 056. That would give access to the tows in the Ptarmigan bowl and, when bad weather was approaching, would provide alternative escape routes back down into the Cas or Ciste, with shuttle bus provision at the bottom to ensure that everyone could get back to their vehicles, as required. The top of those chairs would be double the present distance of the top of the funicular from the Cairngorms plateau and its orientation would not favour those wanting to take access to the plateau in the non skiing season. There chairlifts could therefore be “open” at the top, all year round, and could also be used for mountain biking, combined with the development of new walking and biking trails leading down into both the Cas and the Ciste and back to car park level or further down.
Gondola access from Glenmore to the Cas or Ciste is another possibility and that was advanced by objectors to the funicular in the 1990s. But I would put that as a lower priority today – we have to get the uplift situation on the ski slopes themselves fixed first. Another idea I have heard is a chairlift (or two chairlifts) all the way up to the top of the Cas, to the left of the headwall, from the Cas car park. Maybe that is a good idea but I would make that the third priority after the two chairlifts up to Ice Station Zebra. That location also provides better views of the Cairngorms massif than from the Ptarmigan restaurant. I would leave the Ptarmigan and the funicular to its own devices, funded by HIE, for those who think a high altitude shopping experience is what they came to the Cairngorms for!
^ FWIW : I believe the closed system is entirely valid from environmental perspective. However it inherently limits the funiculars ability to attract repeat custom and generate summer revenue. Once you have been up once and seen the visitor center you wont be going back. So it is very much to blame for economic failure of the choo-choo (Which was always a flawed project).
As you say the uplift is badly in need of upgrade.
The core lift policy (2005) was direct result of ski area being unable to repay funicular debt from 2001.
– Ciste Chair RIP
– West Wall Chair RIP
– White Lady T-Bar RIP
– Ficiall T-Bar RIP
– Aonach Poma RIP
– Link Poma RIP
The problem now, as you say, is that reduced ski area cant cope with demand / make money when it does snow.
However : Any future investment in uplift needs to be able to generate revenue year round.
Which is why closing road and a Glenmore gondola would be a good phase 1 (…. followed hopefully by profitable business being able to re-invest in uplift for snowsports).
^ Glencoe is a good example. Focusing initially on the summer activities (hobbit houses / cafe / bike trails) is what allowed them to stabilise business and invest in improving the uplift.
Obvious problem Cairngorm have is that the funicular cant make money in summer – which is 8 months of the year.
Until that is fixed CML will always be financial black hole.