Assurances have been given over the future management of troubled Horsecross Arts.
The organisation, which operates Perth Concert Hall and Perth Theatre, hit the headlines last month after a funding black hole of £500,000 was unveiled.
Councillors have since been told that this shortfall will be met by the local authority and that steps will be taken to prevent this from happening again.
This month Perth and Kinross Council approved additional financial support of up to £525,000. During a meeting of the strategic policy and resources committee, questions were asked about the funding.
Councillor Alexander Stewart said that while he had “no difficulty” with supporting the transformation of Perth Theatre, he required further details on the basis of the loan.
“Are we loaning the full amount on a short-to-medium-term basis?” he continued. “Is there any reassurance from the organisation that the money will come back or are they getting the money to ensure they can continue?”
Head of finance John Symon revealed there was “some uncertainty” over how much money would be required by Horsecross Arts, as the latest cash flow projections will not be available until next month.
The information available showed a deficit of more than £400,000. He added: “We are in discussions with the new interim chief executive for the next financial year and the year after that. Through those discussions, we will get an understanding of whether there’s potential for the money to be repaid.”
Meanwhile, Councillor Alan Grant revealed the local authority would be keeping a closer eye on the running of Horsecross Arts.
“One question asked was: do we let them carry on as they have been?” he said. “Well, that’s a definitive no.”
Although the council has previously stated that it was working more closely with Horsecross Arts as it needed to have “proper oversight” of how public money is used, this move has been blamed for forcing out several key members.
Six board members quit on October 16, claiming their positions would have become untenable due to the local authority’s bid to have a greater say over the decision-making process. Former chairman Iain Halliday left, along with John Markland, Mike Beale, Mary Alexander, Helen Richardson and Steve Antoniewicz.
Such is the financial predicament facing Horsecross Arts, it is understood some money may be shaved off the proposed £14.5m budget for the redevelopment of Perth Theatre.
The organisation has also been rocked by a series of personnel changes, with the departure of Rachel O’Riordan, Perth Theatre’s artistic director. This was followed by former chief executive of Horsecross Arts Jacqueline McKay leaving her post for “personal reasons”.
The Perth Theatre redevelopment project was meant to be overseen by Ms McKay, who also worked as chief executive of the Byre Theatre in St Andrews before moving to Horsecross Arts last October.