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Concerns over £106m arts centre | Concerns over £106m arts centre |
(30 minutes later) | |
The assembly government has been criticised for not making public the severe financial difficulties facing the Wales Millennium Centre (WMC). | The assembly government has been criticised for not making public the severe financial difficulties facing the Wales Millennium Centre (WMC). |
An unpublished report, seen by BBC Wales, revealed it has debts of £13.5m, and future losses are expected. | An unpublished report, seen by BBC Wales, revealed it has debts of £13.5m, and future losses are expected. |
Auditors said the £106m Cardiff Bay arts venue was in danger of insolvency. | |
The assembly government said it understood public concern. The Conservatives have called for an urgent statement in the Senedd. | |
BBC Wales's Dragon's Eye programme obtained an unpublished review which said the debt, currently guaranteed by the assembly government until December, could not be repaid by the WMC and should be removed. | |
The review was completed in June. | |
Welsh Conservative culture spokesman Paul Davies said: "This is a dire situation for such an iconic Welsh institution to be in. | |
I think it would be nothing short of a catastrophe if the centre wasn't allowed to achieve its full potential Poet Gwyneth Lewis | I think it would be nothing short of a catastrophe if the centre wasn't allowed to achieve its full potential Poet Gwyneth Lewis |
"I am very concerned that this report has only surfaced now. | "I am very concerned that this report has only surfaced now. |
"The debt has not accumulated overnight. It appears the previous Labour assembly government tried to bury the problem. | "The debt has not accumulated overnight. It appears the previous Labour assembly government tried to bury the problem. |
"The original business plan and documents set out before building began projected the Wales Millennium Centre would make a profit. We need to know why it has made such huge losses." | |
In its annual accounts for 2006, filed on Tuesday, WMC's auditors KPMG said "considerable uncertainty" in achieving a settlement with the assembly government "may cast significant doubt about the group's ability to continue as a going concern." | |
First-class institution | |
Culture Minister Rhodri Glyn Thomas said he could not give an interview to BBC Wales because of commercial confidentiality | |
But an assembly government spokesperson said it fully understood the affection in which the WMC was held, and "the concern that has been expressed about the financial difficulties that the centre is facing." | |
WMC chairman Lord Rowe-Beddoe is to meet the culture minister on Tuesday and the centre hopes that the assembly government will repay the £13.5m loan and increase its subsidy to between £3m and £4m a year. | WMC chairman Lord Rowe-Beddoe is to meet the culture minister on Tuesday and the centre hopes that the assembly government will repay the £13.5m loan and increase its subsidy to between £3m and £4m a year. |
Poet Gwyneth Lewis, who wrote the words which adorn the front of the landmark building in Cardiff Bay, said the centre was very important. | |
The Queen attended a gala evening to launch the centre three years ago | |
"I think it would be nothing short of a catastrophe if the centre wasn't allowed to achieve its full potential," Ms Lewis said. | "I think it would be nothing short of a catastrophe if the centre wasn't allowed to achieve its full potential," Ms Lewis said. |
Richard Hogger from arts organisation Creu Cymru said he believed the centre needed an increased subsidy to survive. | |
He said: "It's what it needs to be the flagship that the assembly want. However, if it's going to cause major suffering to the stability of the rest of the provision in Wales, then I think the Welsh assembly have to very seriously think about it." | He said: "It's what it needs to be the flagship that the assembly want. However, if it's going to cause major suffering to the stability of the rest of the provision in Wales, then I think the Welsh assembly have to very seriously think about it." |
The review was commissioned by the former Culture Minister Alun Pugh, and has been written by a team of experts in the field drawn from around the UK. | The review was commissioned by the former Culture Minister Alun Pugh, and has been written by a team of experts in the field drawn from around the UK. |
The report said the debt should be removed from WMC because it did not have the means of servicing or repaying it. | |
In its annual accounts for 2006 the WMC warned that uncertainty surrounding funding from the assembly government may "cast significant doubt" about its ability to continue as a going concern. | |
The venue was opened by the Queen in November 2004. | The venue was opened by the Queen in November 2004. |
It is the home of Welsh National Opera, and hosts regular musicals, ballets and music and comedy events, while there is also a studio theatre. | It is the home of Welsh National Opera, and hosts regular musicals, ballets and music and comedy events, while there is also a studio theatre. |
In September, it announced it had passed a "landmark" £20m in ticket sales and had attracted more than 1.5m visitors from Wales and further afield. |