Abbey Theatre bosses forced to resign over financial black hole.
The future of one of Ireland?s most venerable theatrical institutions looks in jeopardy as its Managing and Artistic Directors have been forced to step down following the discovery of ?under-recording? of the emerging deficit in the organisation?s accounts. The Abbey Theatre in Dublin last week revised its estimates for its deficit for 2004 to ?1.85m, almost double that of previous reports.
The failure to correctly gauge the level of the organisation?s deficit, which has been blamed on its financial reporting system, looks likely to threaten the theatre?s future funding and may put at risk plans to move to larger premises. The shortfall has been blamed on a higher than normal level of activity during 2004, the theatre?s centenary year. As well as a full programme of work in the theatre?s Dublin spaces, the company mounted several national and international tours to mark the anniversary.
On learning of the anticipated shortfall, Managing Director Brian Jackson, who had been due to step down later this year, offered his resignation to the Board. Ben Barnes, its Artistic Director and joint Executive Director with Jackson, has agreed to stand aside ?to facilitate an accelerated transition to the new management?. The Abbey had already appointed a new Director Designate, Fiach Mac Conghail, who was due to take overall control later this year. He will now start immediately. The Board also plans to commission an independent consultant to review the Abbey?s accounting and financial control systems, to ascertain how the scale of the shortfall was underestimated by management and Board.
The news appears to have come as a shock to Ireland?s Arts Council, which is scheduled to provide more than ?5m in funding this year. Olive Braiden, Chair of the Arts Council, said it was deeply concerned at the Abbey?s recent announcement: ?...we are awaiting an urgent financial report on the situation. In the meantime, we are in ongoing discussions with the Abbey.?
The theatre has experienced a turbulent few months, with a failure to find a suitable area for re-location and widespread criticism of its artistic programme. In the autumn, plans were mooted for making a third of all staff redundant. This, coupled with criticism of the organisation?s artistic leadership, led to a vote of no confidence in Ben Barnes, which he survived. The organisation received ?2m in stabilisation funding direct from the Irish Government last December, which had led many commentators to think its fortunes had turned a corner. However, there is now speculation that the Government may take over direct funding of The Abbey, which in 1925 became the first ever state-subsidised theatre in the English-speaking world. A spokesperson for John O?Donoghue, Minister for the Arts, Sport and Tourism said, ?The Minister intends bringing proposals to Government for a new corporate governance structure for the Abbey to ensure its viability going forward.?