Watchdog examines funicular funds

The funicular railway started running in 2001

Scotland's Auditor General Robert Black has ordered a review of a public agency's take over of the Cairngorms' mountain railway.

Highlands and Islands Enterprise (HIE) announced in May its decision to take control of the funicular's operator CairnGorm Mountain Limited (CML).

CML had debts running to more than £400,000.

Audit Scotland will examine HIE's future plans for the funicular, the railway's background and activity.

MSPs at a meeting of the Scottish Parliament's audit committee have been notified of the spending watchdog's review.

Mr Black has received the HIE accounts for the year ending 31 March this year.

FUNICULAR FACT FILE Construction was delayed in 1998 when the Royal Society for the Protection of Birds and WWF issued a writ against the planning application. A judicial review led to the action being dismissed. Work resumed in August 1999 and the funicular opened to the public in December 2001. The cost of the building project to HIE was estimated at £19.7m.

HIE subsidised the building of the funicular, but due to long-running financial difficulties in stepped in to take over ownership of the operating company from CML.

This agreement involved wiping out its accumulated debts.

The Cairngorm ski resort and railway were taken over by HIE in May.

It followed agreements reached with Bank of Scotland Corporate and CairnGorm Mountain Trust on large debts owed by CML.

Highland Council had previously agreed to write off a £1m loan to the limited company.

Meanwhile, this month the carriages have been lifted off the track for the first time for what the operator called "a major mileage service".

The funicular takes visitors to the Ptarmigan Top Station, just below the summit of Cairn Gorm, in a journey lasting approximately eight minutes.