Scottish Government to make further funds available to cover Cairngorm funicular repairs

The Scottish Government has now confirmed it will provide additional capital to owners Highlands and Islands Enterprise to finish the repair work on the Cairngorm funicular.

Highlands and Islands MSP Edward Mountain (Scottish Conservative) has welcomed the 'U-turn' following fears additional funds would be withheld from the development agency in order to get the mountain railway up and running.

The funicular is due to return to service this winter after being out of order since September 2018 because of fears over the safety of the concrete piers holding the two kilometre track.

In May, earlier this year, Mr Mountain called on the First Minister to review the Scottish Government’s decision to authorise HIE to complete the repair works without additional funding.

Instead, HIE were expected to use their own budget.

Edward Mountain was concerned that HIE’s £64m annual budget would have come under serious pressure and other vital Highland businesses would have potentially seen their support reduced or suspended as a result.

FoI requests had revealed HIE had also expressed its concern to Scottish Government officials about how the additional repairs would be paid for within its budget.

The MSP has now received correspondence from Ivan McKee, Minister for Business, Trade, Tourism and Enterprise, confirming more funds will be forthcoming.

The Minister states: “I have challenged HIE to manage the increased costs within their existing budget as far as this is possible.

"However, given the level of commitment in HIE’s current year budget, it has been agreed that additional capital funding will be allocated to HIE in 2022-23 to support the Cairngorm funicular costs.

"As in previous years, this position will continue to be reviewed and addressed through in-year budget management and processes.

“I know that you are concerned that businesses in the Highlands and Islands should not lose financial support from HIE as a direct result of the funicular repairs.

"I share your concern and, as a result of the decision to allocate additional funding to HIE, we are working to ensure that is not the case.”

The increase in funds has not been disclosed yet.

Mr Mountain commented: “I am pleased with the Scottish Government’s U-turn following my request to the First Minister to review the decision to withhold funding from HIE to fix the Funicular Railway.

“The repair bill will be substantial and would have, as HIE admitted themselves, a disproportionate impact on the agency’s ability to support Highland businesses without further funding from the Scottish Government.

“It was clear that HIE could not shoulder all of the burden when it comes to costs. It would also have been unacceptable for vital Highland businesses to lose their support too.

“We are still waiting for the true costs of the repairs to be revealed and the public deserve more transparency on this issue as a matter of urgency.

“I will continue to engage with both the Scottish Government and HIE to ensure the repair works continue to progress.”

A dossier of internal Scottish Government documents revealed that Business Minister Ivan McKee had ended up sanctioning continuing with the project as the 'least worst option' while warning additional finance could not be guaranteed.

No final bill is known for the repairs to the funicular but there are estimates it could be in the region of £20m.

The mountain railway had been due to re-open last winter but work has been delayed for a number of reasons with Covid and the bad weather singled out.

HIE and the Scottish Government has been contacted for comment.

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