HIGHLAND COUNCIL yesterday agreed to wipe off a £1 million debt owed to it by the operators of the Cairn Gorm ski area.

The council moved to secure the future of the funicular railway at Cairn Gorm and protect jobs at the important tourism centre by unanimously agreeing to a request by Highlands and Islands Enterprise (HIE) to sell for £1 its £1,000,000 loan and accrued interest to CairnGorm Mountain Ltd.

The council agreed to make available the loan to CairnGorm Mountain Ltd in December 2001 as part of the funding package for the £20 million Cairngorm Funicular Project.

Convener Sandy Park said, “The council fully recognises the importance of the CairnGorm Mountain operation and the jobs it creates. We support the action being taken by HIE to ensure the sustainability of the business, and it was on this basis the council has agreed to sell our loan to HIE for £1.”

In response Douglas Yule, HIE’s director of operations, said, “We’re pleased that Highland councillors have today agreed to release CML from this long-standing debt obligation. Their decision plays an important part in current efforts to stabilise and develop the long-term sustainability of the funicular railway and the recognised benefits it brings to the Highlands.

“HIE is hopeful that it can reach agreement with HBoS and Cairngorm Mountain Trust to enable the agency to take over ownership of CairnGorm Mountain Ltd.

“If successful, HIE will be able to examine development options in partnership with local, community and industry stakeholders, and will prepare to invite tenders to run the funicular within agreed market, social and environmental requirements.”

The decision was welcomed by CairnGorm Mountain Ltd chief executive Bob Kinnaird who said, “This is the start of a process to put the area and its operations on a stable financial basis from which to move forward.

“We did well this year and that made up for a bad year last year—but not for previous bad seasons.”

He said the money was needed in 2001 for the ski area’s survival, and added that this had been justified in terms of visitor numbers.