Yes, that was me!
It's intriguing because the right of way and track is still there for the most part. A service just Newton - Heathfield is probably not worth it though. As a P&R associated with the A38 it doesn't really add up to much as both Newton Abbot main station and any new Jetty Marsh site would still be a fair walk from the town centre, although around Jetty Marsh itself there are a fair number of businesses, a new college site and the hospital of course. The link to Buckfastleigh is completely batsh*t crazy IMHO. Going to Bovey could however provide that small town with a fast reliable link to Newton Abbot and, as I suggested, beyond to Torbay. Heathfield is a fairly large industrial estate so in theory a lot of potential exists for inbound commuting, but unless the trains come from places people actually live at times they need to start and finish work, I doubt it would actually prove popular. A rational lower cost strategy would be to ensure a frequent bus service to Bovey and Chudleigh actually serving Newton Abbot rail station via the town centre. The problem with that is traffic congestion however, which, as in many provincial towns, is awful in Newton Abbot during the peaks. After all who wants to sit in traffic in a bus when you can do the same in your own car?! That's where rail, with its own right of way can offer some attraction, even when station sites aren't 'perfect'.
The A382 road to Drumbridges is planned to be improved soon including a direct link to the end of Jetty Marsh Road near the hospital, but looking at the plans, there in no new double carriageway provision so it's unclear how it will help to un-jam the peak time congestion that makes buses such a slow unreliable option on this axis. I can't see the proposals alleviating jams in Newton Abbot centre either so buses will continue to be subject to traffic problems, although clearly they can serve the town centre better than a rail link. As in many towns, public transport is poorly integrated, so the bus routes for Heathfield, Bovey, Chudleigh etc do not continue on through the town centre today, as they so easily could, to terminate at the rail station. The extra bus transfer leg, or long walk, between bus and rail stations clearly doesn't encourage interchange for multi-mode journeys so these can be difficult, time consuming, and often prohibitively expensive, especially for ad hoc irregular journeys.
Other options: Handover the track bed for light rail operation. That could allow the trams to run segregated from Heathfield into Newton Abbot station, then turn sharp right into Queen Street for a short run into the town centre. Beyond Heathfield, LR standards might allow a cheaper extension through to Bovey, and perhaps an affordable second branch to Chudleigh. Alternatively reliability and speed of segregation could be achieved by converting the line to a dedicated busway with a similar route structure running into town via the main railway station. The light rail option could retain some freight capability for a terminal at Heathfield if more robust light rolling stock of the 'tram-train' variety was operated, or a strict time segregation method used for freight trips, but clearly a bus road option would entirely rule this out.
