Agenda item

Councillor Wann submits a report that presents a business plan for the operation of De Montfort Hall and seeks to agree a way forward to ensure the Hall is adequately funded and provides a cost effective and varied programme of live entertainment for the people of Leicester and beyond. The development of a sustainable business plan is an integral component of the improvement plan for the Hall. Cabinet is asked to agree the recommendations set out in Paragraph 2.1 and 2.2 of the report.

A minute extract from the meeting of the Overview and Scrutiny Management Board on 7 December 2010 will be circulated as soon as it is available.

A minute extract from the meeting of the Performance and Value for Money Select Committee on 8 December 2010 will be circulated as soon as it is available.

Councillor Wann submitted a report that presented a business plan for the operation of De Montfort Hall and sought to agree a way forward to ensure the Hall was adequately funded and provided a cost effective and varied programme of live entertainment for the people of Leicester and beyond. The development of a sustainable business plan was an integral component of the improvement plan for the Hall.

Councillor Grant stated that there had not been a unanimous decision at the Overview & Scrutiny Management Board that the proposed option was the best, and there was concern about the Council’s ability to turn the facility around. He also raised concern regarding the additional funding required at a time when some services to vulnerable service users may increase in price. He also stated that the report contained no equalities implications and felt that such reports should consider equality impacts corporately.

Members stated that the decision had not been taken lightly, and that, when looking in detail, De Montfort Hall’s recent programming had exceeded that of privately run facilities elsewhere. Hidden economic advantages to the city were also highlighted and actions already taken that were resulting in significant reductions to cost to the Council. It was noted that the Culture & Leisure Task Group had also looked at the issue in detail.

The Leader thanked all involved.

RESOLVED:

                        That Cabinet:

1)     Agrees the proposed Vision and Objectives for De Montfort Hall (as set out in Para 4.4.1 of the report;)

2)     Adopts and implements the proposed Programme Policy for De Montfort Hall (as set out in Para 4.5.7) by:

a)     Increasing the number of single-night popular income generating events,

b)     Increasing the number of long-run touring musical theatre productions,

c)      Prioritising popular income generating shows, and

d)     Maximising commercial hires for non-performance events;

3)     Reduces  the cost of the Philharmonia Orchestra residency  by decreasing the number of concerts from 9 to 7, noting that additional funding is being sought by the Philharmonia for a bespoke programme of concerts tailored for Leicester primary schools (Para 4.7.1-6);

4)     Reduces the cost of the outdoor festivals, by changing the arrangements for Summer Sundae Weekender to a guaranteed fee model followed by a % split of income. This model will reduce costs substantially, share risk more equitably, and provide a mechanism to manage and control expenditure more effectively, as described in Para 4.6.  As part of this arrangement, and in agreement with our partners,  Concert Clinic, Big Session Festival will not take place in its current format in 2011, with any resulting programme gaps being met by the indoor programme;

5)     Continues with the current governance arrangements for the management and operation of De Montfort Hall (Para’s 4.8.6-8) on the understanding that:-

·        Hall Management will be supported by an Advisory Board made up of councillors, stakeholders and representatives from the Business Community to ensure every effort is made to improve the financial performance of the Hall. The terms of reference and membership of the Advisory Board to be delegated to the Director of Cultural Services in consultation with the Cabinet Lead Member for Culture and Leisure

·        A Finance and Business Manager is recruited as soon as possible so that the financial performance of the Hall can be constantly reviewed and developed

·        The ongoing cost of this arrangement, (an increase of £287k per annum), as described in the Financial Implications section of the report are noted and incorporated within the base budget for 2011/12 onwards

·        A further report is brought to Cabinet on governance which looks in more detail at the feasibility and potential benefits of establishing a trust model for the long term future operation and management of De Montfort Hall

6)     Supports the development of an asset management plan (Paras 4.9.1-4.)