FEARS that insurance premiums would shoot up for steam railways since main line tracks were reclassified alongside oil wells have proved well-founded. But although some railways are feeling the pinch, the Romney, Hythe and Dymchurch is coping.

Premiums on the line jumped by 20 per cent last year. The railway's general manager Danny Martin said: "I'm pretty sure our broker got us the best deal around. We have a big public liability as we carry so many people."

This year's premium seems large, at about £20,000, but that has to be set against a turnover of £1.5 million.

"It looks like this year's passengers number is about 160,000," said Mr Martin. "That's seven per cent up on last year and we had only budgeted for three per cent."

The foot and mouth crisis actually helped the railway, as it did most coastal areas, as people could no longer go into the countryside. The expectancy was that it would go back to normal this year, but people seem to have stuck with the seaside as their holiday of choice.

And while insurance premiums are still large, the fact that the RH&D only runs at 25 miles an hour seems to have worked in its favour.