Select Committee on Culture, Media and Sport Minutes of Evidence


Examination of Witnesses (Questions 320-337)

BIRMINGHAM REP THEATRE, BIRMINGHAM CITY COUNCIL, MANCHESTER ROYAL EXCHANGE THEATRE

22 FEBRUARY 2005

  Q320 Chairman: You have made a point, Mr Ormston, which demonstrates the kind of inevitably messy jumble of distribution of finance for the arts. On the one hand there is the ACE, which will have a policy—which is more than it used to have. Then there are local authorities, and the local authorities will be looking not so much at a policy overall for the arts as to competing demands from other local authority services as well. Then, you have the Lottery, and the ACE of course is a Lottery distributor; but, as Mr Ormston has pointed out, because you have listed buildings and historical buildings, the Heritage Lottery Fund may have a different kind of policy as indeed the London theatres are very much hoping they will have with their new project. Because there is such a profusion of funding bodies, and all of those bodies have different policies, logical perhaps within their own parameters, does that create difficulties for you?

  Ms Weller: It is a little easier for us because we are not funded in any significant way by our local authority—it is a historical situation. Almost all of our funding comes from the Arts Council. A very small amount comes from the Association of Greater Manchester Authorities. It is not very small, but by comparison to what the Arts Council gives us. So it is less of a problem for us, although I have to say that over the last 10-15 years, up until quite recently, until the new Arts Council policy for theatre, it was quite difficult because quite often the Arts Council itself would have varying policies. You would have one from head office in London and one from the Regional Arts Office, and quite often they did not always see eye to eye, so we were juggling which priority we were going to deliver. In terms of the buildings themselves, we are a listed building, but when we applied for Lottery funding we went directly to the Lottery, not to the Heritage, and that is where our funding came from.

  Mr Ormston: In Birmingham, the nature of the partnership between the Arts Council and the local authority at its best has been very, very productive. Whether that needs to be a more formal partnership is an interesting question, but certainly when we do work effectively in partnership it does work to the benefit of all the client organisations that we share. Stuart will have his own views on that.

  Mr Rogers: I very much support that. In Birmingham the partnership seems to work remarkably well. I would also go along with what Pat said; that the reforms that the Arts Council has put in place over the last two or three years have radically improved the system, certainly for revenue funding. It is now a much clearer and much more transparent process. There are not a myriad of different schemes; there is one very simple central funding source. That seems to me a huge improvement. The links between the regional offices and the national offices are much better now; you get a much clearer sense that you are talking to one organisation than you ever did in the past. Where some of the issues arise is exactly where you mention, on the capital issue. Capital funding in this country for theatre or for the arts is in a perilous state because of the decline in lottery funding that is now coming through the system. I think it is not just about building brand new theatres either; it is about maintenance and upkeep of buildings like that. We are struggling to keep up with the basic maintenance. We live in fear of something major happening because we know we do not have the resources to be able to put aside every year so much money so that when the heating plant breaks down we can just go out and buy a new one. We do not have those resources, so although we can keep patching things up, our real fear is that when something major happens like that, where do we turn to? A national policy for a capital repairs and renewals for arts organisations would be hugely beneficial.

  Mr Ormston: You mentioned competing resources in local authorities, which is absolutely right. One of the things that is urgently needed is the justification for the local authority expenditure in the arts and related activity in education. Many areas of local authority service now have formal targets or are recognised in the comprehensive performance assessment, whereas the arts still remains marginal to that. We do need to do some work fairly urgently that shows what impact investment in the arts has, in the way local authorities can use to justify their expenditure and investment.

  Q321 Mr Doran: I want to follow about how you deal with the fabric of the building. Mr Rogers has probably answered my question. At the centre of our discussions in London has been the commercial theatre, which is quite unusual. They have put forward a proposal that £125 million should come out of the government or the public pot, and therefore they will put in another £125 million, and that would help to repair the fabric over 15 years of commercial theatres in London. Can you say more about how you deal with major capital projects? Is there any certainty at all when you are faced with these sorts of problems?

  Ms Weller: It is robbing Peter to pay Paul. We have a relatively recently refurbished building—we were blown up by the bomb, and a great deal of Lottery money was spent on the building. That is six years down the line, and of course things are beginning to wear out and need replacing. We recently carried out a capital replacement plan, and came up with the appalling figure of 1.2 or 1.5—I cannot remember which, but it is in the submission—over the next ten years, on worst-case scenario. It is true that just doing proper, sensible maintenance, year on year, is difficult enough. Like Stuart, I just hold my breath. Literally, when something goes wrong like the central-heating or air-conditioning, I rob Peter to pay Paul. If my exercise is coming in at 1.2 million, I suspect it will be pretty much the same for all the theatres across the country. Personally, really speaking personally, I would love to see the West End theatres refurbished and made more comfortable, but I worry about the needs of the subsidised theatre in the next ten years, for its building. One would hope that it would not be a robbing Peter to pay Paul situation.

  Q322 Mr Doran: You are both in a different position, are you not? Birmingham Rep has very substantial support from the local authority, and the local authority has a fund—for which I congratulate it. You rely on the Arts Council.

  Ms Weller: Which has no fund.

  Q323 Mr Doran: Does that create a difference in your situation? Mr Ormston, would the City Council feel it had to put its hand in its pocket if it had major problems?

  Mr Ormston: Certainly the Rep would feel that the City Council should put its hands in its pocket! We have tended towards being involved in any capital development in the arts portfolio in the city, and there is usually an element of equal leverage between the Lottery, the Arts Council and ourselves, which we try and respond to as positively as we can. That can take a variety of guises. It can be direct capital investment; it can be some arrangements around loans or loan write-offs. There is a variety of ways in which we can assist, depending on our own circumstances. We have quite severe competing needs for capital ourselves right now. I think one of the things that really needs to be tackled is the view of the regional development agencies and their investment in culture and cultural infrastructure. It seems to me that this infrastructure is an important part of the visitor economy and the economy of the city, and across the country there are varying degrees of success in introducing the RDAs as partners for capital investment or any other kind of investment, and that is something that should be looked at. If these theatre buildings, venues and concert halls did not exist, then the RDA agenda of flourishing cities and economies would not exist either. I would like to see that tackled.

  Q324 Mr Doran: When I was looking at your submission from the City Council, you have obviously done some economic analysis. We have seen the national one, and you have talked about the actual expenditure and the actual jobs created, but you do not extrapolate and give us an economic impact.

  Mr Ormston: That is the next step really. These impact assessments are quite hard. It has taken us four years really to come up with a consistency and sizeable enough portfolio to start drawing any conclusions at all, so we did not want to create a false picture; we wanted to be able to evidence and prove whatever we had done in this survey. So the next step is to start to apply the various impact models to it, and also we are this year extending the reach of that survey again. We are also looking firstly at the DCMS guidelines on evaluation and impact to see if we could incorporate the national guidelines as well, so we can see the model applied elsewhere. I would like to see this model applied across the region actually.

  Q325 Mr Doran: Picking up another point from your submission and following Mr Rogers's point, which was a very good one on market co-ordination and funding for the arts generally, the Chairman has already pointed out the different funds. I do not think he induced RDAs and there are probably one or two others as well. You mention in your own report that you feel the local authority contribution is not properly recognised by government and is not taken into account. Do you have a strategy for arguing for more parliamentary policy and full recognition for local authorities?

  Mr Ormston: Yes, there is work going on. Interestingly, Manchester and Birmingham are the only two cities currently trying to come up with an LPSA, a local public service agreement, phase 2 target for the arts. It has proven to be a hard and rocky road. I have been comparing notes with Manchester and what has happened is that our justification for spending on the arts has always been seen as a negative thing, that it is stopping children truanting or stopping bad behaviour or whatever. We are looking to see if we can have a positive recognised outcome for the arts so that we can hand-on-heart state the real value of the arts to our own councillors, as well as DCMS and ODPM. We feel that it is not correctly expressed by these rather more negative takes on the outcomes. In Manchester's case, they have been focusing on community cohesion as their justification of like-for-like investment, and here we have been focusing more on young people and the aspirations of young people. We have three weeks left to satisfy DCMS and ODPM that we have done this work satisfactorily for them to accept it. But it has been a year's work, and it has been difficult. We need to see that achieved across the piece.

  Q326 Mr Flook: Can we look further at the balance between Arts Council funding and local government funding. It is historical, is it not, as to why Birmingham funds here a lot and Manchester does not fund you very much?

  Ms Weller: It is a very specific historical thing in Manchester.

  Q327 Mr Flook: I am trying to get it from a national perspective. That is true in lots and lots of different places, is it not? Is it a chicken-and-egg situation?

  Mr Rogers: I think Manchester is probably the exception amongst regional theatres, in terms of the balance between local authority and the Arts Council?

  Q328 Mr Flook: If I can touch on my constituency, the local authority spends a lot of money on our little theatre, the Brewhouse. The Arts Council funding from the south-west funds Yeovil, which is not my constituency, but it gives a huge amount of money, and there is a huge disparity there. The Arts Council funds for what you give to the artistic world nationally and in your own region, and it funds you to a greater extent: is that really fair? You get a lot of money from the council-tax payer and you do not; but you are both doing the same sort of job for your local environment.

  Ms Weller: I am going to have to explain the historical situation—sorry! Although we do not, the library theatre in Manchester does; and it is just a question of a deal that was done 20 years ago. The Arts Council do the Royal Exchange, and the City Council will do the library. You could put all the money together and split it, and it would work the same—it just falls in that way. We really are exceptional, and I do not think there is any other—

  Mr Rogers: No, I think in most other regional theatres there is the partnership between the Arts Council and the local authority, in roughly the proportions that you see in Birmingham actually, give or take.

  Mr Ormston: I have been in Birmingham for three years, and there has clearly been a long tradition of civic investment in the cultural sector. I was talking to the orchestra last night, and they told me that in 1921 they received a grant of £1,250 from the City Council, so there is clearly a long track record of investment and seeing the value of that, and the pay-off in Birmingham has been the clear understanding of the regenerative benefit of that cultural investment.

  Q329 Mr Flook: Mr Ormston, you make quite an elegant case for the way in which the Birmingham City Council taxpayer, through the City Council, helps the arts and therefore again the people who live in the city, but is there a case for the money that the City Council or Greater Manchester gets from central government through the ODPM to be taken away and just given to the Arts Council directly—i.e., a bigger grant so that you can concentrate and allow artistic freedom to flourish without a local councillor telling you what to do?

  Mr Rogers: I do not think there is a case because as organisations based in particular cities or regions, we have a responsibility to the artist generally, but we also have a responsibility to the communities whom we serve. Those communities are best represented through the local authorities, and the knowledge of those communities and the access to those communities is done through the local authorities. That, to me, is an essential partnership; that we work as much with our local authorities as we do with the Arts Council—and the two complement each other, in my view. I am not saying that the local authorities do not have any interest in the arts—they do, clearly—but they have a greater interest perhaps than the Arts Council in the way we relate to schools and the LEAs, to the work that we do in the communities, to the fact that we are the arts champions for Longbridge and Northfield Ward. Those sorts of issues are important for the life of this organisation or any organisation in a large city, and it is important that that formal relationship with the City Council is there. We also have to remember that the City Council own most of these buildings—this is owned by the City Council.

  Mr Ormston: I agree that it is an essential partnership. It works best when it is seen as an essential partnership by both sides. Our prime responsibility is to the people of Birmingham and the Arts Council's prime responsibility is to the artists of Birmingham; and that combines very well indeed. There would be winners and losers across the country in that situation, which would be difficult to unpick. In addition, the kind of civic pride element to investment in culture and the arts in cities like Manchester and Birmingham are very important. It is all part of the whole; people being prepared to support the culture of their cities is part of the investment as it comes through a local authority angle to the cultural sector; so I think it would probably end up being a problem in all sorts of ways—hearts and minds and all sorts of issues.

  Q330 Chris Bryant: You drew a distinction earlier between receiving houses and theatres that produce their own content, as it were; and I suppose that you could draw that distinction in the commercial West End; that every single one of those theatres is a receiving house. You can also argue, as they have argued very forcibly to us—and you say in your submission quite clearly, "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." That seems to be a pretty determined "no" to £125 million to West End theatres. Would you like to say a little more about that?

  Mr Greg Hersov: You have said that quite strongly. We said it in the context of—what we are talking about is that the owners of the theatres are in a commercial world and they are commercial landlords with their premises in that kind of way, and we feel that that should be borne in mind quite strongly in relation to our needs and then subsidising—

  Q331 Chris Bryant: They will not make any financial gain out of any changes to the seating. I went to see Don Carlos last week, a production that started from the subsidised theatre. I am glad I am not a woman because I would have had to queue for ages for the toilet. The rake in the auditorium is so far that large numbers of even expensive seats are almost impossible to see the stage from, and I am sure there are many worse seats in the house. In terms of tourism and the number of people coming to Britain—and admittedly much of that then benefits London rather than the rest of the country—

  Ms Weller: I would not argue with any of that. As I said at the beginning, I would love, for women, for West End theatres to be refurbished. However, they are commercial landlords. They do take on knowingly the building that needs refurbishing and updating, and if there were lots of money I would say, "yes, yes, please go and do it"; but because I look at my own situation and I multiply that across the country, I am concerned that that money will then not be available to the subsidised sector that you are already supporting and investing in. It is the robbing Peter to pay Paul, which worries me.

  Mr Ormston: I mentioned Heritage before. I think that with commercial theatres in Heritage buildings, there is a potential conflict between the commercial commonsense of the operators who might want to expand the stage-side, the seating capacity, create enough loos front of house or whatever, to increase their commerciality.

  Q332 Chris Bryant: They will not, will they? They will—

  Ms Weller: When they sell on.

  Q333 Chris Bryant: Even when they sell on, they will not increase the value of the property.

  Mr Ormston: But they increase their take through the box office.

  Chris Bryant: No, they will not. They cannot; they will actually lose.

  Q334 Ms Shipley: I have been sitting here, in the Rep, thinking, "goodness, it is actually 30 years since I first came to Birmingham Rep. I remember very clearly my drama teacher at Kidderminster College falling over in shock when she realised she was teaching somebody who had never been to the theatre. Because of my background I had never been to the theatre. She immediately dragged me out that day and brought me here to see Waiting for Godot. I survived! Birmingham Rep, for me, has been very interesting. I like the way it has now integrated into what I call the cultural pedestrianised area of Birmingham, linking Brindley Place and the canals, and the industrial facilities available there, all the way through to—well, I stop at the Birmingham City Art Gallery, because I am biased basically. There is a nasty little blip of horrible food places you have to walk through, which is all pedestrianised; but apart from that little blip that you have to get rid of—fantastic! It is really showing up Birmingham to its best. Visitors love it, and everything about it is excellent. However, my constituency Stourbridge stretches up to Quarry Bank, and Quarry Bank cannot be more than ten miles from here. I would place a bet on virtually nobody coming here from Quarry Bank—the established town centre, yes, possibly, and my constituency, which is mainly located in the Stourbridge area, has the highest level of artists and artistic sort of people in the whole of the West Midlands, I am told, and it is really thriving. However, how do you reach out? I am thinking of my constituency specifically because it is near enough to expect a relationship with you. I liked very much reading about "stay and play" and your innovative idea with Sandwell and Birmingham. How could you develop that with Dudley, which would be mine—okay, it is the next one because you have done Birmingham and Sandwell—and what would be the input from Dudley to make that happen? To me, it looks like a fantastically innovative way of doing it.

  Mr Ormston: The blip is under discussion, but only under discussion. I am sure the coming years will see the blip change, and possibly quite rapidly. There are some minor improvements happening because it has a new owner, Argent, which has invested in the blips that exist. It is not quite as bad as it used to be. The outer ring is roughly the same challenge that you are talking about: how do we connect the city centre and this concentration of cultural resources at the city centre to outer Birmingham and the surrounding city region? It occupies us in all sorts of ways. The City Council—the devolution into the districts has been accompanied by a policy concentration—I think they call it now a city of flourishing villages—is trying to focus on what is out in the outer parts of the city. We have developed a number of schemes, some through the organisations themselves but others through programmes called animates or art sites where we are creating surrogate art centres and arts development professionals in the outer city, to actively connect with local communities.

  Q335 Ms Shipley: What can I expect? Quarry Bank is 10 miles down the road and must be within your target catchment—is it not—please? It would be the sort of place that you are looking for, but it would not be naturally easy; there is no centre, so how would you reach them? How are you going to reach my town centre? I can see that is dead easy, but how would you reach—

  Mr Ormston: Let me give you an example. Following this meeting I go up to Shard End in the city, which again is not known for its connection to the cultural centre of the city. I am going there because we have secured a funding package to turn a community centre into a music centre, recording studio and arts centre, and we actually have a local arts professional working there with the youth service, with community groups, and a whole range of groups. Through the activity there they make connections to some of the city centre's best organisations.

  Q336 Ms Shipley: As theatre, how can you reach them?

  Mr Rogers: You are certainly right. Something like 82-83% of our audience is coming from within Birmingham. That is undoubtedly true. We do have a responsibility to the city by virtue of the £1 million subsidy which we get from the city, which clearly is important.

  Q337 Ms Shipley: You have a million plus from somewhere else.

  Mr Rogers: Yes, from the Arts Council. What we try to do wherever possible is work in partnership with surrounding local authorities to develop things like those you have seen in our brochure, in terms of the writers' workshops we are doing in Sandwell. We have an annual community tour, which is in rehearsal at the moment, where we commission a play that goes on tour to outside areas of Birmingham. I do not know whether it is going to Quarry Bank or not.

  Chairman: Thank you very much indeed. As you can see from Debra and others, we could have gone on a long time more, but we operate within a reasonably strict timetable. Once again, thank you very much, and Mr Rogers I thank you again for your hospitality.





 
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