Adelaide Festival Centre Announces Financial Restructure Proposal

Adelaide Festival Centre Trust Chairman, Barry Fitzpatrick announced on 3 Apr 08 a proposed financial restructure of the Festival Centre to enable it to place more emphasis on managing the development, marketing and presentation of its New Directions artistic vision.

The Trustees of the Festival Centre have proposed to Government a re-alignment of the structure of the Festival Centre Trust that would allow the Trust to concentrate on New Directions and on running the State's major performing arts centre. This would be achieved by transferring, within Government, the Trust's land and buildings together with responsibility for their long-term strategic management. The Trust would, of course, retain day-to-day use and management responsibility.

The restructure proposal complements the previously announced forgiveness of the Festival Centre's $28 million debt to Government.

Proposed amendments to the Adelaide Festival Centre Trust Act, recently tabled in Parliament, would enable such a proposal to be implemented. 

The State Government is committed to the long-term sustainability of the Adelaide Festival Centre, a commitment evidenced by its recent new funding for programming and capital works: 

• $9.25m over four years to implement the New Directions programme
• $8m towards a refurbishment of the Dunstan Playhouse  

"As a further indication of support for the Festival Centre, in Jun 07 the Government announced its intention to forgive the Trust's debt ($28 million), " Mr Fitzpatrick said.

According to Mr Fitzpatrick, the Adelaide Festival Centre Trust's operating position over many years has been adversely affected by the debts of the past - including the original $20million building debt, which has remained on the Trust's balance sheet since the 1970s.
 
The proposed transfer of the assets, combined with the forgiveness of debt, would mean that in future, the Trust's financial statements would reflect its core business of programming and presenting an exciting range of performances.

There would be no reduction in jobs due to the proposed restructure and no requirement to redeploy staff.

"The Adelaide Festival Centre Trust will continue to focus on operating the State's major performing arts venues and presenting an exciting creative programme to build audiences. The contributions of the Adelaide Festival Centre Foundation, sponsors, donors and benefactors remain a vital form of support towards achieving our vision", he said.