Well Run and Making a Positive Contribution

A review into the island’s railways has found they are well run, makes a positive contribution to the island’s economy and that there are few real opportunities to reduce costs.

The report from consultants SYSTRA was published on Wednesday after recommendations were published last week.

The review  found that there are few places that cuts can be made without impacting service delivery ‘to the extent that the wider economic benefits of the railway and its role in dispersing tourists and tourism revenue is undermined’.

SYSTRA’s report says that the railways have been successful in maintaining and increasing revenue while minimising expenditure.

It added: ‘As an attractor of visitors to the island they support around 240 jobs directly, in addition to the those employed on the railway.

‘In combination, the spending by visitors in the economy and spending by the railway itself generates £4.64 for the island for every £1.00 of subvention, falling to £2.88 when capital spending is included.

‘Although the railways require funding from government, they clearly generate large return for the Island and currently form a central part of the marketing and promotion of the island.’

The DoI says it is now in the process of giving the report and its recommendations full consideration alongside colleagues from across the government.

DoI Minister Tim Crookall MHK said: ‘I’m very grateful to Systra for producing this report and providing the Department with an extremely valuable analysis of our heritage rail network.

‘Our job now is to examine the recommendations, consider each in turn and establish next steps. How they may be progressed will depend on a range of different factors, and time will be required to establish the best way forward.’

We will have more on this report to follow.