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The Pichi Richi Railway’s main sources of income are from membership subscriptions, scheduled train services, chartered trains and special hires, souvenir shop trading and catering / refreshments.
Pichi Richi Railway currently has no paid employees, and is therefore reliant on its dedicated volunteers to operate trains, to sell souvenirs and refreshments, to undertake maintenance and govern the Society.
The Society’s financial year runs from 1st January to 31st December. The following information is based on 2009 Audited Financial Statements:
| Income |
$’000 |
% |
| Net Train Revenue (timetabled trains and special hires) |
287 |
66 |
| Souvenir Department Profits |
27 |
6.2 |
| Grants (from State and Local Government) |
21 |
4.8 |
| Transfers from Appeal Funds and Provisions |
21 |
4.8 |
| Membership Subscriptions |
19 |
4.4 |
| Net Proceeds – Yx 141 Lottery |
17 |
3.9 |
| Donations & Appeals |
16 |
3.7 |
| Refreshments / Catering Profits |
15 |
3.4 |
| Bank Interest |
10 |
2.3 |
| Miscellaneous / Other |
2 |
0.5 |
| Rounding |
Nil |
0 |
| Total Income |
435 |
100 |
| Expenditure |
$’000 |
% |
| Traffic, Locomotives, Carriages, Trackwork, Buildings, Services & Grounds |
238 |
54.1 |
| Marketing |
50 |
11.4 |
| Stirling North Underpass Reinstatement |
32 |
7.3 |
| Operating Costs (Quorn & Port Augusta) |
32 |
7.3 |
| Administration & Bank Charges |
27 |
6.1 |
| Depreciation of Fixed Assets |
24 |
5.5 |
| Insurances |
23 |
5.2 |
| Members Services |
11 |
2.5 |
| Miscellaneous / Other |
3 |
0.6 |
| Rounding |
Nil |
0 |
| Total Expenditure |
440 |
100 |
| |
$’000 |
| Gross Loss |
5 |
| Less transfer of Donations, Appeals and Bequests |
32 |
| Surplus of Expenditure over Income for the year |
37 |
As the Pichi Richi Railway Preservation Society Inc is a not-for-profit organisation, all proceeds go back into restoration activities and development of the Railway as an Operating Museum. The loss for the year has essentially been funded by a reduction in bank account balances.
The Society is an approved Deductible Gift Register organisation, thus all donations to the Society are tax deductible. Information about the Deductible Gifts Register is available at www.abr.gov.au. Contact the Secretary if you wish to make a donation (email:
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).
Over the years there have been a variety of grants from Local, State and Federal Government sources for specific development projects, including:
- Purchase of mechanised sleeper replacement equipment;
- Track rehabilitation from Woolshed Flat to Stirling North;
- Track extension from Stirling North to Port Augusta and associated works;
- Restoration of ex-Commonwealth Railways steam locomotive NM 25 and refurbishment of 3 NABPa carriages, which usually form 'The Afghan Express' that originates from Port Augusta;
- Lineside control of noxious weeds, funded by Northern & Yorke Natural Resources Management; and
- Improved water harvesting from shed rooves at the Quorn Locomotive Depot to maximise the amount of rainwater that can be used in steam locomotive boilers.
Local and State Government have also assisted significantly with easing the burden of public liability insurance premiums in recent years, with premiums returning to more affordable levels of late. Incidentally, the Society has never lodged a claim since its formation in 1973.
In addition, Local and State Government have provided funding to help develop professional marketing of the Pichi Richi Railway, which is currently performed by a part-time contractor. Most of this assistance has been provided by the South Australian Tourism Commission.
Local Government funding has been provided by both the Flinders Ranges Council and the Port Augusta Council. Additionally certain project funding has been provided by the Northern Regional Development Board.
Corporate assistance has also been received, though this has been somewhat ad-hoc. Central TV (i.e. Spencer Gulf Telecasters) are currently sponsoring the Pichi Richi Railway through in-kind support while The Savings Bank of South Australia (later becoming part of BankSA) contributed funds some years ago to help restore 75 Class Diesel Railcar No. 106, which operates timetabled services and is available for private hire.
In a year when net train revenue increased by around 20% over the prior year, a significant contributor to the overall loss was the cost of reinstating the Stirling North Underpass, which was severely flooded in mid-December 2008. Refer to the following link for some digital images taken two days after the flooding.
The reinstatement costs were solely paid for by the Society without any government assistance, except for project management services provided by the City of Port Augusta.
Through the Souvenir Shop the Society sells sleeper certificates for a variety of denominations. They don’t necessarily represent the actual cost of each timber sleeper and associated transport, which is around $40 each. However the Sleeper Certificates have been a useful form of fund-raising over the years, and are available for purchase from the Souvenir Shop in Quorn Railway Station.
During the last 12 months the Society has moved towards purchase and installation of steel sleepers in the main line in order to reduce the maintenance burden which timber sleepers currently represent.
Bequests have also been a valuable source of support. Through Quarterly Notices, Society members have been reminded to remember Pichi Richi Railway in their Will, as follows:
Your bequest to the Pichi Richi Railway Preservation Society Incorporated can help to maintain our railway for future generations to share and experience.
Your bequest could be a specific sum or a percentage of your estate or property items.
A suitable form of bequest is:
“I bequeath the sum of $............ to the Pichi Richi Railway Preservation Society Incorporated.”
If there is a specific project that you would like your name associated with, you may specify this also.
Non-members are welcome to use the above pro-forma wording to make a bequest to the Society.
Regional Spending by the Society
In 2008 calculations indicated that about 27% (or just over one dollar in every four) of the Society’s annual spending involved businesses in Quorn and Port Augusta, together with ticket agency commission charged by Wadlata Interpretive Centre (operated by Port Augusta City Council), and rates paid to Flinders Ranges Council.
Such local spending includes fuel and lubricants, advertising, timetable printing, hardware, refreshments / catering supplies, mechanical repairs, rail safety worker medical assessments, and pest control services.
This percentage would increase slightly when spending in Whyalla and Port Pirie is taken into account.
Also the 27% rate of regional spending did not include members’ reimbursements for purchases they made from regional businesses, due to the extra time necessary to capture this information.
There are a variety of purchases that cannot be transacted with businesses in the region, such as utility providers (e.g. electricity, gas, telecommunications). Additionally, there are some goods and services which cannot be locally obtained. These include coal, specialist plant & equipment repairs, most souvenirs purchased for resale, insurance, sleepers etc.
Included in the Society’s purchasing are payments to local suppliers which are part of larger Australian or international companies. Crushed rock supplies as railway track ballast are a good example, supplied from the ‘Crusher’ at Stirling North with payments made to Boral.
The Society aims to achieve a balance between the total cost and availability of supplies whether obtained in the region, or from further afar, together with transport and related costs. Nevertheless the 27% rate of regional spending is a significant economic outcome considering the Railway's location and distance from major population centres in South Australia. |
