MLA attacks 'bail out' for Opera House
THE decision to fill an almost £2 million black hole in the finances of the Grand Opera House with taxpayers' money has been labelled a 'fiasco' by an Ulster Unionist MLA.
David McNarry sits on the committee set up to oversee the work of the government department providing the additional funding.
He has hit out at the Department of Culture, Arts and Leisure's (DCAL) actions and said it "raises serious concerns about how this department manages its finances".
Last October DCAL awarded the money to the Belfast theatre to save it from insolvency after a massive overspend on the refurbishment work and building of the ACT II extension.
The Grand Opera House (GOH) Trust had welcomed the assistance, which it described as enabling the venue to "meet its financial obligations" and "regain a stable financial position".
Blaming the overspend on a rapid rise in construction costs, a trust spokesperson said: "The overspend only became apparent at a very late stage and after the project had been completed.
"In addition to the original funding, the Grand Opera House Trust raised 2.66 million of funds itself in support for the project including 1 million from its own reserves."
Mr McNarry said: "In developing its new extension, the Opera House overspent its budget by some 2 million.
"This financial hole was then filled in with taxpayers' money gifted by the Department of Culture, Arts and Leisure and it would appear that no mechanisms are in place to repay it."
The UUP Assemblyman said he appreciated the cultural significance of the theatre but added: "The manner in which this money was handed over - with no questions asked, no alternative sources of funding sought, no compensation required - raises serious concerns about how this department manages its finances."
He questioned how many deserving projects would miss out on funding due to this bail out and added: "At a time of severe fiscal constraint across the Executive, no government department can afford to send out a message which says we will bail out businesses that overspend or fail to deliver on their terms of contract.
"Across Northern Ireland countless businesses could do with a hand out from the taxpayer, but they will not get it."
A spokeswoman for DCAL said: "There were a number of health and safety issues which had to be addressed which resulted in additional expenditure. To avoid any potential future claims, there were sound reasons for meeting these costs."
She said neither DCAL nor the GOH were aware of the cost increase until well after the project had been completed and added: "The department provided the Culture, Arts and Leisure Committee with a full explanation of the circumstances surrounding the additional expenditure required in respect of the construction work at the Grand Opera House and the rationale for making the necessary funding available."
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Monday 28 May 2012
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