Public ownership of the Cairngorm funicular railway, currently under construction, is being extended through the purchase of additional associated buildings by Highlands and Islands Enterprise (HIE). The move places the future operation of the railway, due to open later this year, on a firmer financial footing.

Initially HIE were to own the funicular railway itself, with the three stations being owned by CairnGorm Mountain, the company who will lease and operate the railway. Now HIE is to purchase these buildings as well, bringing the funicular infrastructure fully into public ownership. Although the total construction cost of £14.8 million will not change, the purchase will mean an extra contribution by HIE of some £3 million. A further investment of £525,000 is being made to buy the other existing buildings on the hill, principally the ‘day lodge’.

As HIE already own the Cairngorm Estate including the ski area, this extra investment means the land, the railway and all the associated buildings on the ski area will now be owned by HIE. They will form part of the complete funicular 'package' which will be leased and operated by CairnGorm Mountain. The lease charges to be levied by HIE have also been increased accordingly.

The move will have several management benefits. It concentrates the ownership of the railway, the buildings and the land in public hands, making them more easily and accountably managed in future - both environmentally and economically. It also simplifies CairnGorm Mountain's role. They will be able to concentrate their efforts and resources on working solely as a leasing and operating company, with no ownership responsibilities.

HIE chairman Jim Hunter said: "The funicular railway, and the development of the ski-ing facilities in the Cairngorms is a key part of our strategy to revitalise the tourism economy of Badenoch and Strathspey, alongside the redevelopment of Aviemore and the benefits to be gained from the future Cairngorm National Park.

"We are quite convinced that our purchase of these extra assets is a worthwhile public investment. It brings the bulk of the ski-ing infrastructure into public hands, making it more easily and accountably managed in future. In the long term HIE would seek to transfer ownership of this key asset to some other appropriate body, involving community, ski-ing and environmental interests."

The Convener of The Highland Council Convener David Green said: "The Council is a long-standing supporter of this exciting enterprise, which promises to provide the gateway to the Highlands with a high quality and sustainable attraction. The additional investment by HIE provides a solid financial platform for the business, which I am sure will be a success.

"The Council has already agreed to make a £1 million loan towards the cost of the funicular. We now look forward with anticipation to the first public use of the railway and that we can now move on and develop this environmentally sustainable tourist attraction."

Construction of the funicular is on schedule and it is due to carry its first passengers later this year.