Steam Railway Mini Magazine

STEAM
NEWS
B R E XIT
SPECIAL
MORE OR LESS?
Brexit puts question mark
over steam cash grants
BRITAIN’S STEAM railways
could be heading for tougher
times after the unexpected
Brexit vote on June 23.
Senior figures in the
industry have warned of
major challenges ahead - but
at the same time see a host of
new opportunities.
With so much policymaking
still up in the air
both at home and across
the Channel, the UK’s
preservation movement is
anxiously examining the
implications of the narrow
referendum decision to leave
the European Union, and
calculating the likely effects
on its finances.
While Steam Railway
must declare itself editorially
neutral, the overall picture is
one of uncertainty.
Concerns over the removal
of EU funding for new
schemes and training were
compounded by economic
turbulence that could hit
visitor numbers and increase
BY BARRY Mc LOUGHLIN
the cost of fuel and building
materials.
However, there were
more positive indications
that the weaker pound
could encourage increasing
numbers of Britons to holiday
at home and attract more
overseas visitors.
Steam railways such as
the Welsh Highland and
Severn Valley have received
millions of pounds from EU
sources over the past 20
years. Brussels funding has
helped some railways to pay
for capital investment in
new projects and to finance
apprenticeships and other
training schemes.
The Heritage Railway
Association has pledged it
will be there for its members
if they have to fill any funding
gap caused by withdrawal
from the EU.
However, the HRA does
not expect a significant
I ADMIT I’M DISAPPOINTED, BUT WE
MUST KEEP CALM AND CARRY ON…
By BRIAN SIMPSON OBE, Chairman, Heritage Railway Association
BREXIT BRICKBATS?
change in the UK regulators’
interpretation of European
directives, or in the ROGS
2006 Safety Regulations,
which provide the regulatory
regime for rail safety,
including steam lines.
HRA Chairman Brian
Simpson, a former leading
MEP who chaired the
European Parliament’s
transport and tourism
The EU referendum is over and, to my great disappointment,
the country has voted to leave.
What effect this will have on steam railways is hard to
judge. There is bound to be a great deal of uncertainty in the coming
months and years. The decision will have a profound effect on our
country.
Steam railways will, of course, carry on doing what they do best,
providing the experience of travelling by train in a bygone era, and
competing with other tourist attractions for visitors and enthusiasts alike.
The grants that some railways and tramways received from the EU will cease when we leave. In the
long term there may be cost rises in all sorts of purchases, especially imports and fuel. Those cost
increases may include copper and other non-ferrous metals - important to locomotive owners.
Meanwhile, the relative weakness of sterling, while unhelpful to the UK economy at large, may
provide a boost to inbound tourism (visits by railway enthusiasts and tourists from overseas), and may
lead UK residents to look more to the UK for holidays and leisure breaks.
The HRA will be working with its partners in Visit England/Britain, Visit Scotland and Croeso Cymru
to maximise any short and long-term opportunities to build the role of steam railways in tourism, and to
help members capitalise on that growth.
My message to steam railway operators is to keep on giving excellent service to visitors. That’s
what’s enabled our sector to grow and thrive, regardless of EU membership.
Many people are upset by a perception that they are being taken out of the EU against their will. But
what we need now is a time of reflection and calm for us all.
The HRA has already begun the process of anticipating and analysing the impact of Brexit on every
aspect of steam railway operation. It’s at times like this that support and guidance for members comes
to the forefront of our work as an association. Where the issues are clear, we’ll explain. Where there are
unknowns, we’ll be working to find the answers.
z Loss of EU funding for developments and training.
z Weaker pound means dearer imported coal.
z Reduced spending power for leisure.
z Construction costs up - building materials etc.
z Economic downturn - less public money to fill EU funding gap.
z Effect on pensions could hit key preservation demographic.
BREXIT BRIGHT SPOTS?
z Increase in ‘stay-cations’ and foreign tourists.
z Cuts in ‘red tape’.
committee, told Steam
Railway: “The tourism
industry in Britain is in for a
difficult time. Money won’t be
available where it might have
been in the past.
“If the money is no longer
there, we have to plan to work
without it. Steam railways
must carry on doing what
they are good at: providing an
experience of a bygone era for
thousands of visitors.”
Much of the EU money for
preservation schemes has
come from the European
Regional Development Fund,
although the rapid expansion
of the community has
brought about a shrinkage in
the eligible areas of the UK.
An economic downturn
could hit passenger numbers
on preserved railways and
main line railtours as visitors
have less disposable income
to spend on leisure. Rising
car fuel costs could deter
both visitors and volunteers.
Older people could be
under particular pressure
if turbulent markets affect
pensions, which is bad for
steam lines because they are
a key visitor group.
The EU provides funds
for small to mediumsized
businesses for
training in engineering and
construction skills. Funding
for apprenticeships and
traineeships comes via the
Skills Funding Agency, which
is a co-financing organisation
with the EU through the
European Social Fund.
The cost of materials and
components for construction
projects could rise because of
the fall in the value of sterling.
There are also fears that a
weaker pound could push
up the cost of coal imported
from countries like Poland
and Russia. However, UK
steam lines increasingly use
domestically produced coal.
UNKNOWN
IMPLICATIONS
The HRA’s Mr Simpson told
Steam Railway: “There’s great
uncertainty at the moment.
The markets are in turmoil
and the currency is at a
record low. That will make
things we buy from abroad
more expensive.
“That will have an effect
on the railways, but each
railway can react differently.
Some are in a position where
they can perhaps withstand
it; most are not. But a lowervalue
pound means people
will perhaps stay in the UK
for their holidays and visit
preserved railways.”
Mr Simpson said money
for EU-funded schemes such
8 Issue 456 July 15-August 11 2016
www.steamrailway.co.uk