Warning taxpayers set to pick up bill for Royal Hall takeover bid

The leader of Harrogate Borough Council, Don Mackenzie, has moved to allay concerns that the future of the venue has been thrown into doubt after the Yorkshire Post revealed on Saturday that there was a six-figure funding shortfall.

However, Coun Mackenzie has admitted that taxpayers would almost certainly have to finance the widely-anticipated bid by Harrogate Theatre to take over the running of the Grade II-listed Royal Hall.

“If a deal is reached we are prepared for the fact there will be a cost to the Harrogate taxpayer,” he said.

“In negotiation terms, we have to reach a point where the theatre feels happy by going forward on a one-year deal and at the same time from the council’s point of view, make sure we are happy that we have left money in our budget to help the theatre in order to make the best situation for both parties in which we can continue and get a deal signed up.

“However, whatever deal is reached at the end it will involve a fairly hefty subsidy on behalf of taxpayers.”

The Royal Hall, which was re-opened by the Prince of Wales in 2008 following a £10.8m restoration, is managed by Harrogate Council as part of the Harrogate International Centre (HIC) portfolio, which lost £1m last year.

Crisis talks are set to take place tomorrow, after Harrogate Theatre’s director urged the chief executive and the leader of the borough council to get involved in discussions over the move after negotiations had reached a “stalemate”.

Russell Davidson, who is also the chairman of the Royal Hall Restoration Trust, claims the (HIC) has snatched a £150,000 first-year subsidy off the table which could put an end to the takeover bid.

He said: “There are two venues that will flourish when they run in conjunction, but with no subsidy it puts an incredible start-up risk on the theatre. We can’t do it without a subsidy for the first few years otherwise we will bring the theatre down with it.

“I feel that the leader of the council and the chief executive perhaps need to have a closer involvement in the running of the HIC so as to be able to get a grip on the true nature of its problems and its financial situation.

“It seems very mixed messages have been given to the theatre by HIC during the course of these negotiations.”

However, HIC director Angus Houston has hit back at the claims and says he remains hopeful a deal with the theatre will be reached.

While he refused to disclose any figures, due to ongoing negotiations, he said it was “unfortunate” Mr Houston could not substantiate the sum.

He told the Yorkshire Post: “Lots of figures have been discussed since we began negotiations nine months ago. We are still in discussion and we are very hopeful we will get some sort of partnership with the theatre.”

Coun Mackenzie insisted there would be “money on the table” for the theatre, but said it was too early to disclose an amount.

“At this stage we are looking for the whole budget for 2012 and 2010 and there are many issues when it comes to the budget that aren’t simply to do with the Royal Hall. However, the chairman of Harrogate Theatre and my fellow district councillor, Jim Clark, and I are both anxious and optimistic that a deal can be secured.”

Coun Clark said the theatre was still negotiating the subsidy but did not want to reveal any figures at this stage.

“We need a deal that in that’s in the best interest of all the people in Harrogate,” he said.

The theatre, which has put together a programme for the coming year, is set to make a decision on whether to push ahead with the takeover on January 16, ahead of a crunch council meeting on February 1.