Abbey to have governance structure revamped

A new corporate governance structure is to be put in place at the strugglin Abbey Theatre, it was confirmed tonight.

A new corporate governance structure is to be put in place at the strugglin Abbey Theatre, it was confirmed tonight.

Minister for Arts, Sport and Tourism John O'Donoghue insisted a new system was essential as members of the board of the national theatre held a special meeting to consider the financial difficulties which have mired the century old arts institution.

It is my intention at that point to try and ensure that going forward we have a new corporate governance which will take the Abbey into the next decade and beyond
Minister for Arts, Sport and Tourism John O'Donoghue

"It is my intention at that point to try and ensure that going forward we have a new corporate governance which will take the Abbey into the next decade and beyond," Mr O'Donoghue said.

"The entire governance really is reflective of a different age, and composed of many different constituent parts. Unfortunately that kind of model does not survive very long in today's corporate world where competition is so stiff."

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Olive Braiden, chairwoman of the Arts Council, said the Dublin theatre had failed to meet a series of agreed targets under a programme for change in order to receive Government funding.

The theatre is discussing a report it commissioned from consultants KPMG after it emerged last year's losses were expected to come in at €1.85 million - twice the anticipated deficit.

A letter from a member of the theatre's board is believed to say that unless the national theatre received Arts Council funding by the end of this week it would be faced with immediate technical insolvency.

"All of this has been known since the programme was agreed and the delays are the worrying part but when we get the report we have an Arts Council meeting on Monday. We will consider it and we will decide then what to do," Ms Braiden said. "The Abbey is well aware that they needed internal consultation."

The board member's letter is understood to have said that without such funding the theatre would be unable to meet its liabilities, including wages, and would be required to issue protective notice to its employees.

The theatre has said the consultants' report would be presented to the Arts Council after the board had considered its contents. Mr O'Donoghue admitted a move to a corporate governance structure would inevitably mean a new board in the long-term. However, the minister said the current board had done their best by the theatre but the accounting procedures in place were from the Victorian era.

"We can't let the situation drift much beyond September. The facts of the matter are we do have a serious problem at the Abbey," he said. "My interest at the present time and that of the Government is to ensure that this national treasure, this repository of our cultural heritage is retained."

Ms Braiden said the theatre had agreed to meet a set of targets laid out in the change programme in order to access Art Council funds. "That was made available by the minister, two million, so far they have had just one tranche," she said.