Abbey Theatre debt to reach €3.3m as losses mount

THE Abbey Theatre will incur losses of €900,000 this year, adding to the €2.4 million debt it had run up by the end of 2004.

The national theatre’s troubles were discussed at the Dáil Public Accounts Committee yesterday.

Comptroller and Auditor General, John Purcell, who is responsible for monitoring how public monies are spent, told the committee that, in 2003, he expressed concern about the theatre’s growing deficit.

Audited accounts showed the theatre lost almost €802,000 that year, bringing its deficit to €1.58m.

He sought assurances from National Theatre Society Ltd - the company structure running the Abbey - that action was being taken. He was subsequently informed by the Abbey that losses of no more than €110,000 would be incurred in 2004, and steps were being taken to reduce the overall deficit.

In fact, the theatre, which put in place an expensive programme to celebrate its centenary, lost €1.85m last year, bringing the deficit to €3.4m. When this came to light, the Government stepped in with a €2m ‘stabilisation grant’, half of which was used to reduce the deficit to €2.4m.

Since then, significant change has taken place. Earlier this year, at an Extraordinary General Meeting, it was decided to dissolve National Theatre Society Ltd and replace it with Abbey Theatre Ltd, which will be run in a different manner to its predecessor.

Mr Purcell, said the theatre ran up losses of almost €600,000 for the first six months of 2005, a figure which would likely reach €900,000 by year’s end.

But he was hopeful the changes being put in place would lead to the Abbey being on “a much sounder footing” in the future.

Addressing the committee, the theatre’s director, Fiachra MacConghail, said its new team had accepted fully the report by consultants KPMG which recommended major reforms. The way the Abbey did business would be “much more transparent” in 2006, he said. Although he did not envisage future problems, alarm bells would go off “much earlier” if some did materialise. But he said he would be seeking a “substantial increase” in Government funding, with the caveat that the monies would be properly managed and fully accounted for.

Meanwhile, the Arts Council, through which State funding is channelled to the Abbey, defended its role in the theatre’s crisis.

Council director Mary Cloake said that in the late 90s, it had noticed the growing deficit, but felt it could be brought under control. The council began to have serious concerns in 2003 when it became apparent the situation had worsened, and took steps to address the problems, she said. The council decided to ask the Government for further funding, which led to the stabilisation grant.

The theatre is set to move to George’s Dock on Dublin’s quays in 2009.