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Cairngorm railway management criticised
A Scottish Parliament committee has blasted Highlands and Islands Enterprise (HIE) for failing to resolve financial and operational risks in the management of Cairngorm's funicular railway.
The Public Audit Committee said that issues were not identified or acted upon by the enterprise organisation, which contributed towards a sharp increase in costs relating to building and running of the railway. An initial estimate for the construction of the funicular railway was £14.8m, but more than £26m has been spent on supporting operator Cairngorm Mountain Limited (CML), which was acquired by HIE in 2008.
The committee's criticism of HIE highlighted the failure to identify the financial state of CML, the failure to consider the effects of climate change or other risks relating to construction and the failure to examine "assumptions" made in the original business case for the scheme. Committee convener Hugh Henry said: "We find it unacceptable that HIE did not review its business case before construction began to ensure that the project was proceeding on a realistic basis and the risks to public funds were minimised.
"The committee remains concerned about HIE's apparently open-ended financial commitment to the funicular." In response, HIE acting chief executive Sandy Brady said: "Highlands and Islands Enterprise recognises the committee's criticism of earlier decisions surrounding the development of the funicular railway.
"HIE is committed to its responsibility to maintain the safe infrastructure of the facility and to put in place a financially sustainable business model which enables the resort to continue increasing its contribution to the local, regional and national economy."
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