The finances of Glasgow's Royal Concert Hall are "strong" and it is "very much business as usual" according to a defiant internal memo, despite the city council planning to hand over control to another cultural body.
Peter Winckles, the interim director of Glasgow Cultural Enterprises (GCE), which runs the concert hall, the City Halls and Fruitmarket venues, sent the memo to staff following a council report that said GCE was experiencing "financial difficulties".
The council's executive committee voted to begin talks about the process of having the three venues taken over by Culture and Sport Glasgow (CSG), the arms-length body that runs the city's museums and galleries.
Mr Winckles' memo says the key economic pressure the venue faces is a lack of money for maintaining the buildings.
"I would like to take this opportunity to give you the company's position," he says. "The fundamental issue we face is that because of the significant economic pressures that Glasgow City Council face, they are unable to commit to the second phase of the 15-year, £15m life cycle maintenance programme agreed in August 2004.
"This programme covers the repairs, renewal and improvement of our building - the Royal Concert Hall. Our own financial position remains strong."
Accounts filed at Companies House in August last year show a net profit of £12,261 for GCE.
Last night a spokesman for the council denied there was any 15-year commitment. He said £3m had been given to the hall from 2004 to 2007 for maintenance, adding that the current situation had "nothing to do with economic pressures at the council".
In the internal memo Mr Winckles, who is also head of finance and administration, says he wants to "put the record straight" and adds: "I would ask that you reiterate that it is very much business as usual. We have a very full calendar of events going forward and our own financial position is strong. We do, however, still need to resolve the ongoing maintenance of our buildings and this we will do in partnership with Glasgow City Council over the forthcoming months."
Next week will see the first meeting of a Transition Group of interested parties to discuss the plan for CSG to take over the venues.
Staff at the venues have expressed concern this week at the speed of the merger process. They also question why the SECC venue is involved in the talks, as they consider it a competing venue.
Louise Mitchell, the former director of the concert hall, is also not included in the talks, despite being the new head of Glasgow's Unesco City of Music programme.
This week she said she could not comment on the proposed takeover until more details were available but added: "What I do know is there is a fair degree of uncertainty that is causing my former colleagues distress, which I regret."
A spokesman for the city council said the SECC was involved in the talks as the council owns a significant percentage, 91%, of SEC Ltd.
Staff fear the proposed union of the two bodies is a "fait accompli" and were dismayed by the lack of discussion of the scheme at the council's executive committee last week.
The council committee considered a paper which says that GCE needs £5.8m in capital investment, £3.7m of which is of a "high priority".
In the paper, leading accountants PricewaterhouseCoopers said a takeover by CSG would allow the venue organisation to save £500,000 annually, which could then be reinvested in the buildings.
The move would also generate "economies of scale" and greater flexibility for the use of all venues, the paper said.
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