Government rescues historical Hotham Valley Tourist Railway

23/03/01
Tourism Minister Clive Brown announced today that the State Government had saved the Hotham Valley Tourist Railway from closure in the short-term.
The company advised the Western Australian Tourism Commission last week that they would cease trading by today unless an immediate injection of funds could be arranged.
Mr Brown said $70,000 would be provided to Hotham Valley Tourist Railways in return for them agreeing to some very strict terms.
He said the short-term finance had been offered to save the railway from closure so the review of its continued viability, due to be finished next week, could be considered.
The rescue funds were conditional on the Railway Board agreeing to:

• undertake a restructure;

• develop a plan of debt reduction;

• orderly disposal of assets; and -

• a reduction in operating costs.

"The railway's board has agreed that a Government-appointed administrator will oversee the daily operations of the railway and will help prepare a plan to restructure and refocus the operation," Mr Brown said.
He said the administrators had been asked to complete a restructure plan by May 31.
"Essentially the State Government has bought the railway time to have one last go at making the organisation self-funding," the Minister said.
"I authorised the bail out offer because I am aware that the railway has a strong volunteer support base and is of some historical and heritage significance.
"However, in providing the rescue funds, I am also drawing a line in the sand that says 'that's it'."
Mr Brown said it was now up to the public of Western Australia to show their support for the railway by patronising it.
"We've done our bit - if people want to keep the railway operating beyond June 30, then they have to turn out in sufficient numbers to make the service viable beyond that time," he said.
Mr Brown said the decision to provide short-term funding for the railway had been difficult in light of the tight Budget the State Government had inherited from the previous government.
Media contact: Bev East 9222 9699