Out-of-steam town places hope in trust

Opinion in the Kingston community is divided over whether a trust should be set up to save the Kingston Flyer after receivers put the historic steam train up for sale by international tender.

The category 1-protected train ceased operations this year in the face of mounting debt.

Its owner, Kingston Acquisitions Ltd, was placed into receivership last week by Prudential Mortgage Nominees.

It has been reported Kingston Acquisitions owes Prudential $4.7 million.

Kingston Community Association chairman Peter Gibson said a trust was an option worth exploring if the receivers failed to sell the train.

"As a last resort, a trust could be set up to buy it. But it would need to be set up by the wider Otago and Southland community. The second venture would be to get an entity to operate it," he said.

He had no idea how much the trust would have to raise to buy and operate the train.

Fewer tourists were visiting the town because the train had not been running, he said.

Kingston Flyer Steamtrain Ltd had a lease to operate the train.

Director Ian Caldwell's wife, Jayne, said a trust would not be able to afford to operate and maintain the train.

No interest had been shown in setting up a trust years ago.

"It's not going to work now. No-one realises how much it costs to run a steam train and railway. It's not cheap," she said.

The receivership was a positive development, and she believed the receivers would sell the train to a private buyer.

Kingston woman Paula McAuliffe said the Kingston economy had "gone really flat" since the train stopped running.

"Hundreds come through every day, but only stop to take pictures of the train," she said.

She thought the receivers would sell the train to a private buyer.

The Save the Kingston Flyer Facebook group had 681 members yesterday.

Many have publicly pledged their support for a community trust to buy the train.

At least three members promised to give $1000.

Robbie Caldwell took over Kingston Acquisitions after its original director, Dan McEwan, went bankrupt.

Mr Caldwell referred all questions to the receiver.

Receiver Lindsay McClean, of Malloch McClean Queenstown, said the Kingston Acquisitions portfolio contained more than 80ha of land and various assets.

The portfolio, including the Kingston Flyer, had been placed on the market with Queenstown real estate agency Bayleys.

Tenders were expected to close next month.

Bayleys had received many inquiries about the sale, he said.