Agenda item

Purpose:

1. To present an update on Abergavenny Borough Theatre following the Cabinet decision to accept the surrender of the lease, bringing the Management Agreement to an end, and returning ownership and control to the Authority.

2. To request that Members consider activity to date and proposed next steps, providing comments for Cabinet consideration on the 25th July 2018.

Recommendations:

1. That Select Committee scrutinises the situation analysis and options appraisal and

considers the proposal to recruit a fixed term, full time Theatre Manager, with supporting Front of House Supervisors, be resourced from within the approved Medium Term Financial Plan, in order to put the Theatre on a on a more stable footing and determine the medium/longer term future for the Theatre.

2. That Select Committee considers the development of a formal Charter or Concordat with Acting for the Borough (A4B), the former Borough Theatre Management Committee.

Key Issues:

1. In February 2018, Cabinet approved and accepted the surrender of the lease between the Council and the Borough Theatre Trust. In so doing, the Management Agreement entered into by both parties ceased and Abergavenny Borough Theatre returned to the ownership and control of the Council. The Borough Theatre Trust were in full agreement with the actions taken and agreed to cease to operate and to de-register themselves on conclusion of the hand-over. The Council also agreed to undertake a TUPE transfer of the six existing Theatre employees, and to meet any severance costs of the individuals if a viable, ongoing model for the Theatre could not be found.

2. In making the decision, the Authority agreed to review all operations of Abergavenny Borough Theatre over a six month period and to bring forward an options appraisal as a subsequent report to Cabinet for the medium term future of the Theatre.

Member Scrutiny:

The Head of Enterprise and Community Development and Finance Manager presented the report.  Following on, Members were invited to comment and ask questions:

A Member queried financial viability and asked if there was any comparative data with similar towns and theatres, also if any theatres are closing.  It was responded that the data comes from the Arts Council for Wales.  There was no information about closures.  It is a recognised fact within the industry that theatres need financial support.  The grant applied puts the theatre on a sustainable footing.  The theatre is a community facility and plays a significant role in the social wellbeing of Abergavenny.  It is bigger than any other in the town, has a good reputation and audience figures are strong. 

A Member stated that arts and entertainments have been identified as growth areas and spoke in favour of the appointment of a manager to promote successful outcomes whilst accepting the risk of a potential additional severance payment to do so.

In response to a question about the cost of refurbishment it was confirmed that there was a grant available from the Arts Council worth £280,000 which would have to be match funded, and the means to do this is under consideration.  It is positive that the Arts Council has appointed a London based theatre architect to work with us.  Further details will be provided in due course.

A Member supported the proposals and emphasised the importance of maximising use of Council owned facilities by the full range of communities including schools.

A Member asked about the ongoing financial commitment to refurbish and maintain the theatre.  He stated the need to be realistic about revenue and for the need for careful scrutiny.  It was confirmed that there will be six monthly updates and scrutiny will be arranged as necessary.

It was confirmed that the trust is being wound up and funds will be moved over by 1^st September 2018, that there are no ring fenced grants although there are positive indications from the Arts Council of Wales regarding the capita refurbishment funding and a reconciliation of transactions will be carried out to ensure that the council only pays for expenditure relating to the running of the theatre after handover.  Any other balances will be used up by the trust on outstanding expenses.  It was confirmed that there will be opportunity to scrutinise the final accounts.