Memorandum submitted by Manchester Royal
Exchange Theatre
The Royal Exchange is a 760 seat Theatre in
the Round with an experimental 100 seat Studio Theatre and is
situated in the centre of Manchester. This award winning structure
is sited in Manchester's Victorian Cotton Exchange and is not
only a thriving theatre but also a tourist attraction. It was
built in 1976 with a combination of Arts Council, City and private
funding.
We produce, across both spaces, at least 14
productions annually and over 250,000 people engage with our work
every year. Our policy is to present a wide a spectrum of work
from European classics, contemporary drama through to new writing.
Our aim is to serve our entire community and our programming reflects
this. Running alongside the productions and central to the work
of the Royal Exchange is its education, audience development,
and new writing programmes which continue to grow and develop
new audiences for our work.
The Royal Exchange has a turnover of around
£5 million with an annual Arts Council subsidy of £2,135,300.
We employ over 100 permanent staff which, with artists and freelance
workers can swell to 230 over any year. We have two apprentices
and dozens of work experience placements every year.
THE CURRENT
AND LIKELY
FUTURE PATTERN
OF PUBLIC
SUBSIDY FOR
THE THEATRE
INCLUDING REVENUE
SUPPORT AND
CAPITAL EXPENDITURE
Over the last 10-15 years a great deal of research
has been carried out on how public subsidy for theatre is used.
It is now understood that for a relatively small amount of subsidy—approximately
£121.3 million—huge economic impact is generated—approx
£2.6 billion nationally of which £1.1 billion comes
from the regions. Over that period of time theatre companies have
become much more efficient at raising and earning money themselves
for example of the Royal Exchange's £5 million turnover we
raise between 58-60% ourselves.
To ensure that theatre thrives and meets the
needs of its community subsidy is essential. Art is time and labour
intensive but is not, as is sometimes thought, indulgent or extravagant,
in fact, compared to some commercial businesses it is super efficient.
From the early 1990s until the recent Theatre Revenue, theatres
were starved of proper subsidy and development became almost impossible
for many building based producing houses, this in turn impacted
on audiences and communities. With the understanding that theatre
can contribute significantly to the well being of our towns and
cities and the input of £25 million a real difference was
made. Not just in theatres being able to deal with the day to
day business of producing work but in terms of development in
new writing, access and community work. And audiences responded.
Having raised that expectation and produced that new work and
stabilised the sector it would be a disaster to return to standstill
grants that will once again strangle the work, lose audiences
and, in some cases, close theatres.
Capital expenditure will always be necessary
for building based theatres. The Lottery has, on the one hand,
been the saviour of the sector, enabling long overdue refurbishments
to take place and, in the case of the Royal Exchange, allowing
us to rebuild and survive after a major bomb blast. However the
problem comes with maintaining these new and refurbished buildings.
The RET recently carried out a capital replacement exercise which
is forecasting a need (in a worse case scenario) of £1.5
million over the next 10 years. Given that current subsidy takes
no account of capital replacement and indeed is often insufficient
to carry out normal, sensible annual maintenance, a major funding
problem looms. It is essential, if these buildings are to be kept
safe, comfortable and up to date with the ever growing health
and safety legislation, that a policy and funding for Capital
Replacement is developed.
THE PERFORMANCE
OF THE
ARTS COUNCIL
ENGLAND IN
DEVELOPING STRATEGIES
AND PRIORITIES
AND DISBURSING
FUNDS ACCORDINGLY
After many years of continual reviews, changes
in policy and uncertainty for its clients the new format of the
Arts Council with its current policies and strategies has enabled
a much stronger and efficient organisation to emerge. This has
enabled a clarity of vision and a national overview that is paying
dividends. The criteria for grant giving is clearer and the process
more efficient and consequently theatres can get on with the business
of producing the work and spend less time trawling through endless
schemes and a myriad of different grant applications. It is essential
that this new regime is maintained and that the sector is allowed
security and continuity to enable it to grow and develop its audiences.
SUPPORT FOR
THE MAINTENANCE
AND DEVELOPMENT
OF THEATRE
BUILDINGS; NEW
WRITING; NEW
PERFORMING TALENT
It is essential that a Capital Replacement Fund
is developed (see above). Support for new writing is a vital,
constant, necessity. The nurturing and development of new writers
immeasurably strengthens the theatre and in a broader way—radio,
TV, cinema. We want stories that reflect our contemporary existence
and feel relevant to our lives. It is in the nature of new writing
that any substantial investment only throws up a proportion of
successful plays, but without this investment nothing can happen.
The same process applies to new performing talent. The majority
of our Oscar nominees and best-loved television performers start
in the subsidised theatre. The opportunities need to be there
for any talented performer to establish themselves.
THE SIGNIFICANCE
OF THE
THEATRE AS
A GENTRE
(A) WITHIN
THE CULTURAL
LIFE OF
THE UK, (B)
WITHIN THE
REGIONS SPECIFICALLY
The significance of theatre within the cultural
life of the UK can be seen in different ways. Theatre contributes
to the understanding of the past, our history, the way we live
now and the way to the future. A piece of theatre becomes part
of the general exchange of ideas, passions and provocations by
which we explore who we are and what we do, or could do. Theatre
represents cultural diversity both nationally and internationally.
It can bring us to a better understanding of worlds we don't experience
directly. Above all theatre is a unifying event. In a fragmented
society segmented by age, race and class, a piece of theatre can
bring different people together through a common connection to
the intelligence and imagination. The real strength, power and
purpose of theatre lies in this forging of a community out of
the disparate nature of our modern world.
THE RELATIONSHIP
BETWEEN THE
SUBSIDISED SECTOR
AND THE
COMMERCIAL SECTOR—ESPECIALLY
LONDON'S
WEST END
The relationship between the subsidised sector
and the commercial sector is a mutually beneficial one. However
it is important to distinguish between the two. The commercial
sector flourishes because of the subsidised sector. It is important
that public monies are not siphoned off to the commercial sector's
undoubtedly important needs, for example capital refurbishment.
The theatre owners are in the commercial world and should take
responsibility for the required investment. They are the ones
who benefit most from any improvements.
February 2005
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