Swilly go under the hammer
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THE LONDONDERRY and Lough Swilly Railway Company could be under new ownership soon if an offer from a London company is accepted by shareholders.
The unnamed bidder, who was born in Ireland, would keep the company in the private sector, and has offered £6 per £10 ordinary share. A decision on the offer is expected later this month.
If accepted, the bid could help alleviate the uncertainty which has dogged the crossborder bus operator for the last few years, and which has led it to seek support from both the British and Irish Governments.
Following a European Economic Community study of North-west Irish communications which recommended a £0.24m grant for Lough Swilly's fleet renewal, nothing, was done until the company applied for assistance last year.
The Irish Government was more sympathetic than the Northern Ireland authorities, and last May it offered two years' support, subject to an examination at the end of the period.
But the Irish offer was dependent on the company remaining in its current ownership, and it may have to be renegotiated if the prospective buyer takes control.
L&LSR general manager W. McCay told CM that the company's "desperate plight"' had been caused in part by Ireland's membership of the European Monetary System, and the United Kingdom's nonmembership.
While the greatest proportion of revenue collected has been in Irish POnts, Lough Swilly's headquarters and workshops are in the North, and the bulk of the outlay has been in stronger sterling. This has a drastic effect on a small company's finances.