Archived decisions

Contact: Contact: Janet Mein Ext 5468 e-mail: [email protected]

1. Introduction

1.1. The report presents the case for support to the Bournemouth Symphony Orchestra (BSO) to produce an outdoor concert at Royal Victoria Country Park in July 2008.

2. Recommendation

2.1 That agreement is given to contribute towards the expenses incurred by the BSO in arranging the proposed event at Royal Victoria Country Park, to the extent that such expenses are not met from income from the event, provided that the Council's contribution shall not exceed £22,000. The contribution shall be funded in equal shares from the Policy & Resources and Recreation & Heritage budgets, subject to the agreement of the Executive Member, Recreation & Heritage.

2.2 Payment of any contribution is subject to a marketing plan for the event being provided to the Council in advance, and receipt of an independently verified set of accounts

3. Background

3.1 The BSO is a regularly funded client of the County Council. In 2006 it received a grant of £172,000. Following a review of music provision in the County the All Party Member group recommended to the Executive Member for Recreation and Heritage a progressive reduction in funding to the Orchestra. In 2007 the Grant awarded was £150,000 in 2008 £130,000 and 2009 £120,000. The funding relates to a service level agreement which also has input from the two cities and three other districts in Hampshire. The orchestra also receives additional support from Children's Services regarding the additional education work that the orchestra undertakes.

3.2 Outside of the concerts and other activity that the orchestra undertakes as part of this Service Level Agreement, the BSO promotes a series of commercial outdoor summer concerts. These concerts are the responsibility of the Marketing Department of the orchestra and are, explicitly, fundraising concerts, the profits from which go to the Sir Dan Godfrey Endowment Fund.

The Endowment Fund's purpose is "to provide long-term revenue income" to the orchestra. Surpluses on all activity for the year are invested in the fund.

In addition "surpluses made from the summer commercial activities of the Orchestra will be invested to support foreign touring, which is an important part of maintaining and developing the national and international profile of the orchestra." (Source BSO Business Plan 2007 - 10)

4. Concerts at Royal Victoria Country Park

4.1 The BSO has promoted concerts at the Royal Victoria country Park in four of the last five years. In each year the County Council has provided the site, site management costs and a pump priming amount of £5,000 to enable the Park to be established as a venue for this type of event. The Orchestra brings its own infrastructure in for the event (stage, sound equipment and staff).

4.2 The event is very weather dependant and, as well as the attractiveness of the programme and intrinsic qualities of the venue to the audience, this is a crucial factor.

4.3 Audiences at Royal Victoria have been:

2003 - 3694

2004 - 4370

2005 - 2978

2006 - 2296

2007 - No concert.

4.4 The cost to the Orchestra in 2006 was £50,000 (reported to BSO Working Party as part of the Service Level Agreement financial report) and the Orchestra took a net £38,012 income from the event leaving a shortfall of £11,988 without making any `profit' for the Endowment fund.

4.5 The Managing Director of the BSO proposes the following financial structure for the 2008 concert. "What I am therefore suggesting, having looked at the budgets for the project which will cost £50,000, is that Hampshire County Council gives the Orchestra a grant of £22,000. The orchestra then takes the risk on the next £28,000 and any money taken beyond £50,000 is split 50:50 between the County Council and the orchestra."

4.6 The proposed budget for the event is as follows

Expenditure

Publicity 9,500

Orchestral costs 5,585

(not including core costs)

Equipment 24,775

Venue 750

Staff 4,750

Fees 4,400

Total 49,760

Income

1681 tickets 32,618

Less Vat 27,618

Profit/loss (22,000)

HCC contribution 22,000 + VAT

4.8 The BSO's proposed budget is based on a further drop of 615 attendees at the event from the 2006 audience figure. An audience of approximately 3,000 would produce a break even figure on the budget.

4.9 A simpler mechanism to secure the concert at no risk to the orchestra, at the same time as limiting the County Council's exposure, staying within financial regulations and ensuring that the benefit of the investment is for Hampshire people, would be to provide the grant in the form of a guarantee against loss up to a limit of £22,000. A "guarantee against loss" is the industry term to describe the mechanism by which funding bodies provide assurance that presenting organisations do not incur debt through putting on an events jointly agreed to incur specific costs. The mechanism has the benefit of supporting the organisation whilst defining quite tightly the limits of the financial support available from the funder.

5. Legal Powers

5.1 The County Council is able to utilise broad powers under the Local Government Act 1972 to provide financial support for the arts. In particular, Section 145 of the Act enables the Council to contribute towards the expenses of doing anything necessary or expedient for any of a number of purposes, including the provision of entertainment of any nature, or the provision of a theatre, concert hall, dance hall or other premises suitable for entertainment. The powers include the ability to contribute towards the expenses of maintaining a band or orchestra, and towards the development and improvement of the knowledge, understanding and practice of the arts.

6. Conclusion

6.1 The outdoor concert series provides orchestral music to an audience which, in general, does not attend concerts in a traditional concert hall. The programmes are tailored to the specific demographic which attends these events and for whom the ambience of the outdoor event in its surroundings is as important as the music itself. The orchestral event is part of a wide range of activities provided at Royal Victoria Country Park. This event also has the ability to attract audiences to the Park which have not previously visited.

Section 100 D - Local Government Act 1972 - background documents

The following documents discuss facts or matters on which this report, or an important part of it, is based and have been relied upon to a material extent in the preparation of this report.

NB: the list excludes:

1. Published works

2. Documents which disclose exempt or confidential information as defined in the Act.

(Quote list of documents here: either "none" if 1 or 2 above apply; or list the relevant letters, memos, etc. and their location)

BSO Files - situated at Arts Office, Mottisfont Court.