More cash possible at arts venue

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More public money may be given to the Wales Millennium Centre (WMC) where a £13.5m debt has put the arts venue at risk of insolvency.

Assembly members have been told further financial support is being considered as part of the assembly government's budget discussions.

But Heritage Minister Rhodri Glyn Thomas said there would be no "open- ended commitments".

The landmark building stages musicals, opera, dance and comedy.

Financial support for the Wales Millennium Centre is currently under consideration Rhodri Glyn Thomas, Heritage Minister

Mr Thomas said the assembly government "shares the concern" about the budget issues facing the WMC but he said there was very little ministers or the WMC could say while negotiations continued.

"The outcome of those discussions will become known following publication of the draft assembly government budget on 5 November," he said.

Mr Thomas also condemned the leaking of an auditors' report revealing the financial probelms as "irresponsible" and "reckless", suggesting it had made the situation more difficult.

Opposition leader Nick Bourne said he was "staggered at the minister's complacency", accusing him of appearing to be "fiddling while Rome burns".

The venue hosts opera, musicals, dance, comedy and theatre

"The minister appears to argue that he would prefer this matter to remain a secret," he added.

"It is clear he has known about it for some time but has done little or nothing about it.

"The minister's response today was far from convincing and huge questions remain about what the assembly government plans to do."

Lib Dem Jenny Randerson - culture minister at the time capital funding for the centre was agreed - said it was unthinkable that it should be allowed to get into "even deeper trouble".

'Business as usual'

A warning from auditors that the £106m arts venue in Cardiff Bay was in danger of insolvency emerged on BBC Wales' Dragon's Eye programme last Thursday.

The programme obtained an unpublished review which said the debt - guaranteed by the assembly government until December - could not be repaid by the WMC and should be removed.

The WMC said they had been in negotiations with the assembly government for some time.

Huge questions remain about what the assembly government plans to do Nick Bourne, Conservative assembly group leader

In its annual accounts for 2006 the 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."

The venue said 6% of its £13 million turnover, around £750,000, comes from public subsidy.

It is understood the WMC hopes the assembly government will increase the subsidy to between £3m and £4m a year and repay the £13.5m loan.

Meanwhile, the WMC's management said it was "business as usual" at the venue.