Victor Harbor Horse Tram Authority seeks bailout for huge deficits as algal bloom disaster adds to Ross River virus woes
The algal bloom is having a devastating effect on Australia’s only horse-drawn tram – sparking calls for an urgent intervention to clean up a financial mess.
Victor Harbor’s famous horse-drawn tram is seeking an urgent bailout after it posted financial results revealing $320,000 in deficits, reflecting the algal bloom disaster’s impact on its trade.
At a Victor Harbor Council meeting last month, councillors disagreed over whether to grant a bailout of $170,000 to the Victor Harbor Horse Tram Authority, a council subsidiary.
The organisation, which already receives about $360,000 a year in council funding, posted a deficit of $170,000 in the 2024-25 financial year, on top of its deficit of $150,000 the previous year, which was attributed to horses being affected by the Ross River virus.
Victor Harbor Mayor Moira Jenkins told The Advertiser the state government should step in because this year’s losses were caused in part by the algal bloom crisis.
“We would like to have some assistance from the state government because the horse-drawn tram’s not just a council asset – it’s actually a state asset,” she said.
“People all over the world know the horse-drawn tram and it brings people to South Australia.
“We’ve asked the state government … and haven’t heard back from them.”
A government spokesman dismissed the request, saying the tram authority had already received assistance through the ‘Coast is Calling’ voucher program.
“The tram’s operations are a subsidiary of the council, and this matter is entirely the purview of council,” he said
“Council must not be allowed to shirk its own responsibilities in ensuring that this asset continues to operate now and for the long-term.”
Horse Tram Authority general manager Meg Whibley said between March and September this year, income was down $175,000 compared with the same period in 2023, with figures adjusted to reflect rises in costs.
She said group bookings also declined by 85 per cent because tour operators were unable to fill their tours as the algal bloom scared off customers.
Between March 18 and April 10, the tram shut because horses were showing signs of algal sickness.
“We literally couldn’t run at all – and the horses showed signs of runny noses, sneezing, runny eyes, so we absolutely had to protect them,” Ms Whibley said.
The previous year, one of the organisation’s “main horses” Isabella died from the Ross River virus, which also took another of its horses out of commission.
“After Ross River, we did hope that we didn’t have to ask council for any more money, because we believed that we were going to be fine … then we got hit with the algal bloom, so you add the two together and here we are,” Mr Whibley said.
Ms Jenkins said the tram was not at risk of shutting down because the council would assist even if the government did not – but the council remains set to debate the matter further at a future meeting.
State taxpayers spent $43m on rebuilding the Victor Harbor causeway used by the horse-drawn tram, which was completed in December 2021.
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Originally published as Victor Harbor Horse Tram Authority seeks bailout for huge deficits as algal bloom disaster adds to Ross River virus woes
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