Agenda item

            The Committee considered the undernoted report regarding the Black Box performance space:

“Relevant Background Information

      The Cathedral Quarter continues to be developed as Belfast's historic heart and a major cultural centre. The development of a new city centre arts centre (the MAC - Metropolitan Arts Centre) within the Cathedral Quarter will address the need for a city centre performance and gallery space and will provide a focus for cultural activity in the area, although it is not envisaged that it will be completed until 2011.

      In the interim the Black Box performance space fulfils the need for a city centre performance venue in the Cathedral Quarter and as a temporary performance space to address in Belfast the need for a mid-scale performance venue. It provides a home for the many festivals and other cultural events within the City.

      The Black Box Performance space in the Cathedral Quarter was created by Belfast City Council as part of the Celebrate Belfast programme in 2006. This was made possible through a grant obtained by Belfast City Council under the Urban Cultural Programme. The Department of Culture Arts and Leisure and Laganside Corporation also contributed to the project. In 2007/8 Black Box secured Annual Funding for Culture and Arts from Belfast City Council of £13,000. 

      The Black Box was envisaged as filling the gap in the physical cultural infrastructure pending the completion of major capital developments, and as such has had a strong commitment from DSD, DCAL and ACNI. The need for a temporary venue is now more valid than ever with the current refurbishment programme of the Ulster Hall, the temporary closure for the rebuild of the Lyric Theatre, the pending closure of the Crescent Arts Centre and for a short period the Old Museum Arts Centre.

Key Issues

      Belfast City Council has coordinated a group of key statutory stakeholders involving the Departments for Social Development and Culture, Arts and Leisure and the Arts Council of Northern Ireland to address the continued need for venue provision in the Cathedral Quarter. There were concerns that the level of public sector investment has fallen below the level required to support the continued operation of a venue in the area.

      The Black Box business plan which was approved prior to its development, was based on an annual public sector financial support of at least £60,000. It was felt that this was an achievable level of support from public sector finances. This is a very low percentage of public sector funding and underlines the high level of earned income amounting to 75% of turn over. An independent review of the finances and management has taken place and this indicates that, while there is room for raising additional revenue and developing sponsorship opportunities, there is a need for continued public sector support of £70,000 per annum to secure the organisation. 

      With this in mind the statutory partners have proposed a funding plan to provide £150,000 of support over a 3 year period. In meeting this commitment DSD have already made an exceptional grant of £50,000 to support Black Box in the 2007/08 financial year. 

      The Arts Council of Northern Ireland (ACNI) are currently considering a 2 year funding package to award £25,000 in each of the 2008/09 and 2009/10 years. They have made this conditional of match funding from Belfast City Council. BCC would therefore need to commit £25,000 in 2008/09 and £25,000 in 2009/10 to ensure that this funding is secured.

      In the 2008/09 year Black Box have requested financial assistance of £40,000 from BelfastCity Council's Annual Funding Scheme. Given the proposition presented by the other major stakeholders and a concern that recurrent funding is not the most appropriate way of funding the organisation for a temporary period of operation, it is recommended that support for the venue is achieved by rejecting the Annual Funding application from Black Box and instead, recommending that a two year funding package is awarded to Black Box for enhancing the cultural infrastructure of the Cathedral Quarter.

      It should be noted that should this proposal not be accepted as the way forward on the issue that it will be necessary to consider the Black Box application for Annual Funding for Culture and Arts.

      After the opening of the MAC it should be assumed that Black Box will not receive further funding from ACNI or Belfast City Council. Current forecasts from OMAC indicate that the new MAC is due to open in 2011, although the potential to seek an earlier completion date is being explored.

      If Members approve the proposal as outlined, this funding would raise £50,000 of the required £70,000 public sector funding.  It is hoped that further financial assistance may be possible through other grant sources including the Laganside Events Grants programme now administered by DSD.

Resource Implications

      Financial

      £50,000 paid in equal instalments over the 2008/09 and 2009/10 financial years. This represents an increase in funding of only £12,000 per annum from 2008/09 Annual Funding, and can be achieved from within existing budgets.

      Human Resources

      This will be absorbed within the work programme of the Culture and Arts Unit

Recommendations

      It is recommended that Members decline the application submitted by Black Box through the Annual funding for Culture and Arts programme and instead offer a two year funding package of £50,000 comprising  £25,000 in each of the 2008/09 and 2009/10 financial years.

Key to Abbreviations

BCC        –            Belfast City Council

ACNI       –            Arts Council of Northern Ireland

MAC        –            Metropolitan Arts Centre

DCAL      –            Department of Culture, Arts & Leisure

DSD        –            Department for Social Development”

            During discussion in the matter, several Members expressed concern that to agree to provide financial assistance outside of the normal funding arrangement could set a precedent.  Other Members expressed the view that, since it was unlikely that the construction of the Metropolitan Arts Centre would be completed by 2011, the Council would be likely to receive requests to provide further assistance in future years.

            In response, the Director indicated that the request for the Council to assist Black Box had emanated from discussions between the Arts Council of Northern Ireland and the Departments for Culture, Arts and Leisure and Social Development due to the current financial situation which the Black Box performance space was facing, together with the fact that the Ulster Hall, the Lyric Theatre, the Crescent Arts Centre and the Old Museum Arts Centre were either closed temporarily or due to close.  Therefore, the situation was unique and outside of the normal funding arrangements.  She pointed out that, since the Council was providing less funding than normal to the Lyric Theatre whilst the facility was being rebuilt, the proposed financial assistance to the Black Box performance space could be met from within the arts budget. 

            In answer to further questions, the Director informed the Committee that the Arts Council of Northern Ireland had agreed to provide funding to Black Box for a two year period only.  In addition, the Department for Social Development had provided a one-off grant to support the organisation and had indicated that it would not provide further assistance.  However, the Department for Culture, Arts and Leisure was of the view that there were issues regarding the likely completion date for the Metropolitan Arts Centre and had expressed a willingness to ensure that the Black Box performance space remained open until the Arts Centre became operational.

            Following further discussion, the Committee rejected the application for Annual Funding submitted by Black Box but agreed to offer a two year funding package comprising £25,000 in each of the 2008/2009 and 2009/2010 financial years to the organisation.  The Committee agreed further not to provide any further financial assistance to Black Box in those or any future years.