As passenger numbers continued to grow during the late 1960s it became clear that further motive power was needed, especially as the rebuilt No. 1 was not performing well. The Talyllyn's unusual track gauge and restricted loading gauge meant that it was unlikely that a locomotive could be found that could work on the line unaltered, so in 1969 a gauge steam locomotive was purchased from the Bord na Mona (Irish Peat Board) with a view to rebuilding it for use on the Talyllyn. This locomotive was unofficially known as "Irish Pete", a nod to its original use.