The Gate Theatre's director, Mr Michael Colgan, has in recent weeks accused the Arts Council of causing the theatre "irreparable damage" by drastically reducing its grant.
Writing on January 29th to appeal against the council's decision on the Gate's grant for last year, Mr Colgan said the theatre had been given to believe by the council that its financial reserves would not be taken away.
"The reserves which the Gate has now had to use to offset the operating shortfall of expenditure over income in 2000 were hard won and hard earned. For the theatre to be compelled to have to use them in this way will cause irreparable damage to both morale and incentive within the organisation," Mr Colgan wrote in a letter to the council's director, Ms Patricia Quinn.
Mr Colgan said in the letter, which has been obtained from the Arts Council under the Freedom of Information Act, that it was not until December 19th last that the Gate was notified that funding of "just £200,829" had been granted. He said that in June last year the council had decided to give the Gate £600,000, and this had informed the theatre's entire operation for the year.
Mr Colgan said in a statement to The Irish Times last night: "This is a matter between the Gate and the Arts Council, and I do not feel it is appropriate to discuss it at this point."
Documents obtained under the freedom-of-information request show Mr Colgan warning the Arts Council late last year that the theatre could close because the council was withholding its annual grant. The documents, released this week to The Irish Times, reveal fierce financial and artistic disagreements between the theatre and the council. In one telephone conversation detailed in them, Mr Colgan accuses the council of trying to bring the Gate "to heel".
The documents show the council's strong opposition to the Gate's practice of using its annual grant from the council to pay for running costs, while putting profits from productions into a separate cash reserve fund.
Mr Dermot McLaughlin, speaking for the council yesterday, said he stood over the council's actions outlined in the documents.
The council had a duty to make sure public money was allocated on proper criteria and procedures. The council could not comment further because it was currently considering the Gate's application for 2001.