Theatre secure as debts are switched
Council step in to pay off Gaiety £ 650,000 debt
Theatre bosses are to have a massive loan paid off – by hardup South Ayrshire Council.
The Gaiety will receive £ 650,000 to settle its debt with enterprise body Social Investment Scotland.
Details of the surprise deal emerged this week as stage chiefs agreed to repay the council over the next five years at an interest rate of 2.5 per cent.
Annual grants from Wellington Square will also increase, with the Gaiety to receive £ 125,000 in 2018/ 19.
It follows a move by previous council leader, Bill McIntosh, to slash yearly funding to £ 100,000.
The council’s last administration, replaced with an SNP- led coalition in May, had ordered the theatre to seek a more “self- sustainable” business model.
But Gaiety bosses, who claimed such a move would leave them on the brink of closure, have now witnessed a u- turn under new political leadership.
And the new deal is being seen as a confidence boost for the theatre’s longterm role in the town.
The council, which has a buy- back option on the building, will provide £ 115,000 of funding in 2019/ 20 before returning to the originally agreed £ 100,000 in 2020/ 21.
Depute council leader, Brian McGinley, said both sides had a “valued relationship” worth cementing.
He confirmed: “Ayr Gaiety has generated nearly £ 2 million for the local economy thanks to its impact on town centre businesses, so it’s key to the continued regeneration of Ayr.
“The partnership has supported 40 people into employment and hundreds of people have attended their inspirational workshops.
“We will continue to work closely with The Ayr Gaiety Partnership so that they continue to deliver their successful development activities, within the context of the council’s continually reducing funding settlements and increasing financial constraints.”
Theatre boss, Jeremy Wyatt, added: “South Ayrshire Council’s investment has, and remains the foundation of our social enterprise, providing the core theatre operation and outreach activity.
“There has been tremendous crosscommunity, cross- party support and national recognition for what Ayr Gaiety Partnership have managed to achieve in just five years.”
And Jeremy concluded by adding: “We are delighted that South Ayrshire Council has committed further investment over the next three years.”