The new Pullman-style dining car on the Steam Railway is forecast to generate income of £54,000 this season.
Infrastructure Minister Phil Gawne told the House of Keys he was persuaded a business case had been made for the dining experiences train which cost £225,000 to create.
Questions about the revenue contributed by both the dining car and the recently renovated Snaefell Summit Hotel were raised in the Keys by Onchan MHK Zac Hall.
Mr Hall also queried plans to provide new retail and restaurant facilities as part of plans to renovate Douglas railway station, asking whether it was really government’s role to build restaurants and shops.
Mr Gawne said the dining car had yet to complete a full season of operation. ‘Current forecasts predict income for 2014-15 above £54,000 for that service,’ he said.
That figure is in line with the £50,000 income expected when the business case for the train was first outlined in the Keys last year by the then Minister for Community, Culture and Leisure, Graham Cregeen.
Revenue costs are estimated at £12,000, the Minister told the Keys.
Mr Hall asked: ‘Did the government have to pay for the cost of the dining car?’Mr Gawne said from the information he had seen, he thought it was a reasonable business case.
Converting an old boat train van into a kitchen car cost £149,369. A further £46,576 was spent overhauling an existing saloon bar carriage. Three other saloon carriages were converted for the dining train at a cost of £9,900 each.
All the work was done with the existing budget with no additional funding requested from Treasury.
Mr Gawne said a number of higher value events have still to be run leading up to and after Christmas. These include the Murder Mystery evenings running tonight (Thursday) through to Saturday.
He pointed out the government subsidises the railways to the tune of £4m annually but the department was now seeking to reduce that figure to 50 per cent of running costs.
Turning to Snaefell Mountain Railway, he told MHKs that events at the summit continue to grow in popularity and are frequently sold out. Income from the summit will exceed £34,000 in 2014-15, he said.
Replying to a separate question from Mr Hall about the proposal to refurbish Douglas railway station, including a new-look restaurant and retail area, Mr Gawne it would be ‘premature’ to enter into detailed discussions with potential operators until planning approval had been received.
He agreed with Mr Hall that government should not be in the business of building shops or restaurants but equally it had to ensure improved returns on its assets for the taxpayer.
The Minister said the proposed changes were expected to increase income ‘assuming everything goes to plan’.