The funicular railway on Cairn Gorm was returned to service in late January 2023 after having been closed for repairs since October 2018. Highlands and Islands Enterprise (HIE) committed >£26m to the work that it had deemed a better option for the future of the CairnGorm Mountain business than removing it. The eye watering final (?) bill was well in excess of the original budget and additional finance had to be approved and provided by the Scottish Government. Whether HIE will have to repay that with the settlement of the funicular courts cases (see here) is still not clear.
The decision to repair funicular in the first place was highly questionable simply because it has never and will never carry anywhere near sufficient passenger numbers to make it financially self-sustaining
In the first 5 years of its operation the funicular carried an annual average of 174,935 passengers and in the 5 years to 2015 it carried an annual average of 124,272 passengers. That’s close to a 30% reduction in passenger numbers and ought to have been a major factor in the repair or removal decision.
Additionally, it was very obvious that the funicular was continually dragging the business down to the extent that there wasn’t any money for the thorough maintenance and upkeep of other infrastructure. An example is the £1.1m that HIE provided for improvements to buildings and uplift when they made the major strategic blunder of hiving the business off to a private operator, Natural Retreats, in 2014. Another, the more recent repair work to the upper Cas car park, which had been allowed to deteriorate into a deplorable state, came in at close to £1m.
The dilapidations are far from fixed. A simple walk around the Day Lodge and a look at the building and environs will show anyone just how poorly maintained it has all become. HIE/CMSL have said they intend to replace it, eventually, but where will the capital be found to do this?
The average passenger numbers are falling because a ride on the funicular is generally not on the list for tourists who have done it in previous years. Clearly, there are not sufficient numbers of first time tourists in the area each year to keep the funicular passenger numbers high. It might be expected that numbers will continue to gradually decline, making this gross loss-maker even more of a financial burden.
HIE has pushed the line that the CairnGorm Mountain Business is a key driver of the local economy. That is certainly arguable in respect to snowsports but what isn’t arguable is the fact that the funicular itself is most certainly not a key economic driver. It’s has been largely out of service for the last 5 years, during which time Badenoch and Strathspey has continued to be busy and relatively prosperous. Shortages of staff continue to be the major inhibitor on business, not the closure of the funicular.
Politicians bear a major responsibility here. Those closely associated with the funicular should have been well enough informed to know that the funicular was a major loss maker and, if repaired, it would require a considerable public subsidy, into the future.
Even back in December 2000 it was clear that HIE would be continuing to pay for all hardware replacements/renewals into the future including: 1. Haul Rope; 2. Counter Rope; 3. Rail; 4. Motor Invertors Control; 5.Electric Motors [2 @ 500Kw]; 6. Standby Generators top; 7. Hydrostatic Drive; 8. Gearbox; 9. Bogie including 3 Track Brakes; 10. Carriage Replacement; 11. Train Control Computer. That list makes it very evident that a public subsidy would be required into the future quite apart from the annual operational losses
We might have expected that a Cabinet Minister, having been so poorly informed at the time that the funicular first went into service, would have ensured that he’d all the facts in the future. Regrettably, that statement, which should have haunted Fergus Ewing, failed to teach him anything and he bears primary responsibility for inexplicably agreeing the business case (see here) which allowed the funicular repairs to proceed.
The decision to provide further £millions when the repairs considerably overran the budget wasn’t Fergus Ewing’s to make as he’d been removed from the Scottish Cabinet by then. The minister in charge was Ivan McKee MSP and to his credit he did question whether the funds should be withheld and the business closed down. However, it probably wasn’t politically expedient to take the hard decision and the go ahead to proceed was given. It would seem likely that it was concluded that stopping the work after many millions had been committed would be seen as a scandal and not something that the Scottish Government was prepared to do. The scandal is much bigger today and how they must wish they could turn the clock back
After re-opening, the funicular was subsequently closed on Tuesdays and Wednesdays during the months of May and June 2023 to enable what were termed as ‘Tidying Up’ works. Alarms bells should have been sounding at St Andrew’s House at that point in time.
On the 26 August 2023 the funicular was suddenly pulled from service right on the cusp of the busiest weekend of the summer season. HIE/CMSL put the closure down to ‘Snagging Works’ and it was to last for a week.
The reopening date was pushed back on no less than 7 occasions until finally HIE/CMSL wakened up to the reality of the fact that they didn’t actually have a clue about when it might re-open. In a press release on the HIE website on 28 November they decided to stop making fools of themselves and ceased referring to the works as ‘Snagging Works’ Everyone who has been taking even a passing interest in this debacle has been sure for some time that serious engineering difficulties had been encountered and there was to be no ‘Quick Fix’
It is clear that HIE/CMSL have not yet given up on the funicular for the forthcoming snowsports season and workmen can be seen on the tracks every decent and now not so decent day.
HIE/CMSL are now saying that it will not be back in service for their announced opening date for the snowsport season, 22nd December. With the festive holidays beginning around that time then a significant loss of potential revenue is assured. Unless HIE manage to shortcut safety checks and persuade the Dept for Transport that no inspection of the repairs to the repairs are required, it seems unlikely that the funicular will be back up and running until some time in January at the earliest
Graham Garfoot has previously written extensively about the nature of the problems with the concrete viaduct (see here). The concrete beams, on which the rails are secured, are probably not fit for purpose over the medium to longer term.
On past form it might be anticipated that HIE will double down on their funicular obsession and go cap in hand to the Scottish Government for more £ millions to finance the replacement of the concrete beams with steel. It should be unthinkable for any further public funds to be committed to this National Embarrassment, all the more at a time when the public purse is bare.
Cairn Gorm should be primarily seen and managed as snowsports area, as it was originally. Diversification is good but not if it comes at the expense of the one thing that can bring in the real money. Unless CairnGorm Mountain is quickly returned to majoring on this primary activity then it doesn’t have a future. There’s no reason why CairnGorm Mountain should not be financially self-sustaining but the right strategies need to be in place for that to happen as well as appointing suitably qualified management that have the knowledge and ability to make it a reality.
What needs to happen
The Scottish Government needs to get tough and take the following decisions:
- Remove HIE from all operational involvement on Cairn Gorm.
- Sack the CMSL Board of Directors whose main function is to do HIE’s bidding.
- Ask Kate Forbes MSP and the Aviemore and Glenmore Community Trust to lead on the formation of group from the local community to take over the reigns at Cairn Gorm and quickly develop uplift proposals that do not include the funicular.
- Provide financial guarantees to the new operator over the short to medium term using the £11m recovered by HIE from the court cases.
And 5) dismantle and remove the funicular infrastructure in its entirely from the mountain.
Bimbling, I agree the funicular should ultimately be removed, but let’s persuade the new operators when they’re appointed to spend the money to make the place functional and at least washing its face. There’s plenty of time to remove the eyesore once the hill is making a penny or two. Perhaps a moderate sum could be provided by grant from the government in due course to help with the costs…
Bimbling, I agree the funicular should ultimately be removed, but let’s persuade the new operators when they’re appointed to spend the money to make the place functional and at least washing its face. There’s plenty of time to remove the eyesore once the hill is making a penny or two. Perhaps a moderate sum could be provided by grant from the government in due course to help with the costs…
The funicular ‘should’ be a major asset in attracting tourists and visitors, and should be kept. Short of staff – seriously? There are no shortage of colleges/Uni that could supply catering, hospitality, and tourism staff as part of their training you should think. Finally however, the nail in the coffin is the charges to use the funicular to get to the top station. Costs are no longer sustainable for individuals and especially families – what are people getting for their bucks once at the top these days?
Surely the fact that the structure is fundamentally flawed, and the contraption is too small/ slow/ inefficient to have ever turned a penny in profit, clearly suggests there’s no point in keeping plugging away trying to make it work. Better engineering and commercial brains than mine ( much better) have been pointing these things out for years, decades. There can’t really be any argument for sustaining it other than some power-hungry fool(s) not wanting to lose face.
Why is that major building projects always over run financially and by time.
We are not the only country to experience thus.
Is it that contractors know these contracts are a license to print money?
I personally witnessed one famous government contract being exploited, when during the site preparation phase, trucks were appearing all day to be loaded with one scoop from an excavator, leaving site with virtually nothing on board. I told the site foreman who just stared through me, and ignored it. Presumably he was in on the scam. I shudder to think what the charges were for that one piece of fraud.
I submitted my evidence to the inevitable enquiry, more expenses, KERCHING, but apparently as ever, a big boy dun it and ran away.
There are long term problems recruiting and retaining staff all over Badenoch and Strathspey. Housing is a significant problem for one thing. I don’t know why you would think it’s so easily fixed?
An alternative. (1) Remove HIE from all operational involvement. The business should be brought under the wing of the S.G. (2) Sack the current board and CEO of CM(S)L. (3) Ask the directors of Glencoe, Glenshee and the Lecht to form a new board. (4) When people were interviewed for the job of CEO at CM(S)L there was an applicant with all the necessary qualifications to operate a ski resort. I have confirmed today that he is still interested. (4) All current staff to be retained if they so desire but with major changes to working conditions. Anyone not fully committed to the vast improvements necessary to get the ski resort back on track to apply for voluntary redundancy at HIE’s expense. There are too many stuck in the past and others who will not cross swords with HIE. In order for this business to go forward a radical change is needed.
Thumbs Up
I’d like to know where you received the incorrect statements regarding the replacement of the 500kw motors and associated running gear ie gearbox and hydrostatic equipment. I’m under the belief that these are still the original pieces of equipment since it was installed.
Thanks very much for raising this, you are quite right. The mistake was entirely mine, not Alan’s. His original piece made it clear that HIE retained liability for these items, not that they had replaced them and that was what was first published. In response to a query sent by email I then changed what had been written to make it as I thought clearer in the course of which the error occurred. My apologies. I have now removed the offending words.
As of today ski tickets sort of went on sale. However if you have a ski school you can buy tickets in advance. The season ticket holders can turn up when they wish. Currently anybody else has to drive to Cairngorm on the off-chance their are tickets for the day. Not that I will for that piece of man made ice. My objection is, it has been bailed out by the tax payer and as a tax payer we are at the end of the queue to make use of what we have helped pay for and subsidised in my case since 1973.
Ridiculous waste of taxpayers money over decades. A carbuncle on the face of a beautiful mountain. Remove all traces of scrap metal, buildings, fences and return the area to it’s natural state. Spend the money, saved on continually bailing out a failed business model and capital expenditure on the funicular, in supporting and promoting local businesses.
The things that money is wasted on when there are people living on the streets. It’s time that people stopped wasting money and spend it on more important causes.