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| Version 2 | Version 3 |
|---|---|
| Arts venue costs 'beggar belief' | Arts venue costs 'beggar belief' |
| (20 minutes later) | |
| A critical official report has revealed "severe deficiencies" in monitoring running costs at Wales' leading performing arts venue. | A critical official report has revealed "severe deficiencies" in monitoring running costs at Wales' leading performing arts venue. |
| The Wales Audit Office found "wholly inadequate record-keeping" contributed to ministers' lack of understanding of finance at the Wales Millennium Centre. | The Wales Audit Office found "wholly inadequate record-keeping" contributed to ministers' lack of understanding of finance at the Wales Millennium Centre. |
| Conservatives said the "damning" evidence "beggars belief". | Conservatives said the "damning" evidence "beggars belief". |
| The £109m venue's £13.5m debt has been paid off by the assembly government, which says it will consider the report. | The £109m venue's £13.5m debt has been paid off by the assembly government, which says it will consider the report. |
| The Queen, accompanied by the Duke of Edinburgh and Prince of Wales, officially opened the WMC in November 2004, when it was described as an icon for Wales. The assembly government did carry out detailed reviews of the WMC's business plans, which highlighted several key risks... but crucially, it then stopped short of assessing and addressing these problems Paul Davies AM, Conservative | |
| Three years later there were warnings from auditors that the £106m arts centre was in danger of insolvency. | |
| The assembly government announced in 2007 that as well as clearing the centre's debt it was also trebling its annual revenue funding from £1.2m to £3.7m. | The assembly government announced in 2007 that as well as clearing the centre's debt it was also trebling its annual revenue funding from £1.2m to £3.7m. |
| Now Auditor General Jeremy Colman's report has said the assembly government only became fully aware of the risks involved in funding the centre at that time. | Now Auditor General Jeremy Colman's report has said the assembly government only became fully aware of the risks involved in funding the centre at that time. |
| The centre had become reliant on a loan from HSBC, originally £10m and intended for the building work, which it became unable to repay. | The centre had become reliant on a loan from HSBC, originally £10m and intended for the building work, which it became unable to repay. |
| The report notes that officials lacked the records needed to properly understand the assembly government's financial exposure. | The report notes that officials lacked the records needed to properly understand the assembly government's financial exposure. |
| The report states: "In particular, in 2005 and 2006 the assembly government continued to extend its loan guarantee [to HSBC] without fully assessing whether the WMC could pay back the loan, despite the fact that the WMC was incurring much larger than anticipated losses.".Mr Colman notes that after clearing the debt and increasing the subsidy for the venue, officials then failed to examine the WMC's audited accounts for 2006, which were available to the public. | |
| The lack of information obtained by officials also extended to details of ticket sales. | The lack of information obtained by officials also extended to details of ticket sales. |
| The assembly government claimed the centre refused to provide it with the details because it was worried that commercially confidential information could then be revealed to anyone requesting it using the Freedom of Information Act. | The assembly government claimed the centre refused to provide it with the details because it was worried that commercially confidential information could then be revealed to anyone requesting it using the Freedom of Information Act. |
| However, the WMC disputes this version of events. | However, the WMC disputes this version of events. |
| The Queen officially opened the Cardiff Bay venue in November 2004Speaking to BBC Radio Wales, Mr Colman said: "The standard we would expect the assembly government to come up to would be that of any prudent business person with that kind of financial exposure. | |
| 'Fair and accurate' | 'Fair and accurate' |
| "If you have lent someone or guaranteed a loan of £10m, that's a lot of money and you'd expect to be keeping a close eye on the situation." | "If you have lent someone or guaranteed a loan of £10m, that's a lot of money and you'd expect to be keeping a close eye on the situation." |
| Mr Colman did praise the handling of the centre's construction. | Mr Colman did praise the handling of the centre's construction. |
| Judith Isherwood, chief executive of the WMC, said: "We have no comment to make other than to say that we believe the report is a fair and accurate picture of the facts as they relate to Wales Millennium Centre's business. | Judith Isherwood, chief executive of the WMC, said: "We have no comment to make other than to say that we believe the report is a fair and accurate picture of the facts as they relate to Wales Millennium Centre's business. |
| "We appreciate the work of the Wales Audit Office in the preparation of this report." | "We appreciate the work of the Wales Audit Office in the preparation of this report." |
| Conservative culture spokesman Paul Davies said: "This is a damning report that highlights in no uncertain terms the failings of the assembly government. | Conservative culture spokesman Paul Davies said: "This is a damning report that highlights in no uncertain terms the failings of the assembly government. |
| "The report clearly states the assembly government did carry out detailed reviews of the WMC's business plans, plans which highlighted several key risks. | "The report clearly states the assembly government did carry out detailed reviews of the WMC's business plans, plans which highlighted several key risks. |
| "But crucially, it then stopped short of assessing and addressing these problems. This beggars belief." | "But crucially, it then stopped short of assessing and addressing these problems. This beggars belief." |
| He said the assembly government "effectively washed their hands" of the centre once it had been built, and added: "The assembly government have now got some very difficult questions to answer." | He said the assembly government "effectively washed their hands" of the centre once it had been built, and added: "The assembly government have now got some very difficult questions to answer." |
| An assembly government spokesperson said: "The Minister for Heritage [Alun Ffred Jones] will consider the Wales Audit Office report on the Wales Millennium Centre, and the recommendations made, and will respond in due course." | An assembly government spokesperson said: "The Minister for Heritage [Alun Ffred Jones] will consider the Wales Audit Office report on the Wales Millennium Centre, and the recommendations made, and will respond in due course." |