The Arts Council last night expressed its anger at the Abbey Theatre's financial crisis and said it would meet only the theatre's "operating costs" for the next month. It also insisted that the national theatre society should dissolve itself.
Chairwoman Olive Braiden said: "The Arts Council has been doing its level best to help the Abbey out of its deepening crisis. My colleagues and I at today's council meeting were extremely angry at the sheer extent of the mismanagement of public funds. We are determined to save the Abbey as a major national cultural institution. The reality is that this can only be done with a new company and a new board."
Yesterday's meeting lasted well into the evening.
It followed the presentation last Wednesday night to the council and the Minister for Arts of the KPMG consultants' report into how the theatre lost €1.8 million in 2004, its centenary year, and failed to record €900,000 of that loss until well into this year. The council was deeply concerned at "the failure of the Abbey's financial reporting arrangements".
As details of the report were released, Abbey chairwoman Eithne Healy said last week that there would be a new board and corporate structure put in place.
Last night the Arts Council insisted in strong terms that it would not release any money until the end of next month, other than what was needed for day to day running costs, until the National Theatre and its board was dissolved.
"The council will insist that the National Theatre Society at its forthcoming EGM, commits to dissolving itself on the day that a new company with a new board is established . . . If the National Theatre Society does not agree to dissolve itself in favour of new structures, the Arts Council will make no further funding available."
Yesterday's council meeting "noted that whatever pressures arts organisations experience, the safe stewardship of public funds was required as a fundamental condition of the council's grants . . . The council wants the Abbey to quickly get back to its core function of providing the highest quality theatre as an expression of national artistic vibrancy."
Late last year the Minister awarded €2 million in additional funds - a "stabilisation" grant - to the Abbey to enable it to re-structure. The Arts Council made comprehensive restructuring a precondition for drawing down the grant. Only a quarter of the €2 million has been made available to date.
The theatre last week was reported to be facing "technical insolvency" by the end of the week, and on Thursday the Arts Council wrote a cheque to ensure staff were paid on Friday.
