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ACE report estimates the costs and impact of a Royal Opera House for the North.

Capital costs of £100m, an annual subsidy of between £12-15m and the need to generate 80% financial capacity audiences will be required for the proposed Royal Opera House Manchester (ROHM) (AP170 and AP182) to succeed, according to a report commissioned by Arts Council England (ACE). The report results from an independent evaluation carried out by Graham Marchant examining the feasibility of the scheme, which would see the conversion of Manchester’s Palace Theatre into an opera and ballet house. Both the Royal Opera House (ROH) and Manchester City Council (MCC) have expressed their delight at the report’s findings. In addition to the capital and running costs, Marchant also believes that the project will need “a separate team to get it off the ground, perhaps costing around £200,000 per annum in salaries and overheads”. He also recommends that studies into potential audience levels and the education and training aspects of the project should be undertaken. Potential funders include the Lottery for capital costs and MCC and ACE for revenue funding, while the DCMS, Department for Innovation, Universities and Skills and the Department for Communities and Local Government are also likely to take an interest in the project because of its close links with the city council and with the national training and skills agenda. [[The impact on arts organisations based in or touring to the region is potentially
considerable]]

The report calls the proposal “an almost spell-binding vision” which, if successful, could make Manchester “a global City of Music”, although it also notes that only 35 performing weeks are planned alongside an extensive education and training programme. The ROH has recently been noted for its developments in training through its creation of a new production site at Thurrock in Essex, hosting the National Skills Academy for Creative and Cultural Skills. Artistically, the programme of the ROHM would differ substantially from the ROH, with only 16 performances by the Royal Opera and 31 by the Royal Ballet. There would be a large number of performances created in partnership with other arts organisations, international touring shows, and community programming including a Christmas show, a community opera and summer school performances.
The impact both on other arts organisations based in or touring to the region, and on current audiences for the Palace Theatre, is potentially considerable. The Lowry is currently the main receiving house for operatic and ballet performances from Opera North, Birmingham Royal Ballet, English National Ballet and others. ROHM proposes to create its own partnership companies including Opera North. Marchant notes that: “The ROH has not always been noted for its ability to co-ordinate well with others, but in the Manchester context it will be absolutely vital that it learns to do so”. The ROH points to the Government’s policy to put the creative economy at the heart of economic regeneration, and says it believes this project “could turn that policy into practice”. Sir Richard Leese, Leader of MCC, believes that ROHM “would be a substantial local employer, creating over 500 full-time equivalent jobs.” Those jobs are likely to include orchestral musicians and members of the opera chorus. ACE has given a cautious welcome to the plans. “A lot more needs to be done to turn this ambitious vision into a reality, including identifying potential sources of funding,” said ACE Chief Executive, Alan Davey, adding that he looked forward to working with ROHM, MCC and other partners to develop the idea.