Council approves €1m loan for Opera House
The unanimous decision comes just over a month after the council – the theatre’s largest shareholder – guaranteed a €1.5 million bank loan for the venue which is designed to facilitate the restructuring of short-term loans and overdraft facilities which had been advanced by the theatre’s bankers.
The latest loan is to be repaid within a 15-year period with a moratorium on repayments for the first three years of the term.
In a report to councillors last night, city manager Joe Gavin said this latest loan is necessary to put the Opera House on a better financial footing.
“Cork Opera House is one of the most important cultural venues in the city,” he said.
“Its principal financial benefactor down through the years has been Cork City Council.”
He indicated in his report in May, after which the €1.5 million loan guarantee was agreed, that the Opera House was reviewing its costs and overheads as well as seeking to generate increased income.
“This review and restructuring is now moving at a pace,” he told councillors last night.
“In order to facilitate new measures, which are necessary to put the Opera House on a better financial footing, additional working capital is required.”
Last night’s decision comes just two weeks after Gerry Barnes announced his resignation as executive director of Cork Opera House after a 20-year career at the helm.
He has been replaced by the former boss of brewing giant Heineken Ireland, accountant Padraic Liston.
Cork Opera House is a non-profit plc with charitable status. Cork City Council is the theatre’s largest shareholder with a 39% stake.
The Opera House reported losses last September of just over €83,000 for the financial year ending in March 2009, having reported a profit of just over €49,000 the previous year. Turnover was also down 10% – from €6.3m in 2008 to €5.6m last year.
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