A MANAGING board is being set up to steer Durham's Gala Theatre out of troubled financial waters.

Durham City Council is carrying out a review of how the theatre is run, following losses of £446,000 in the past seven months, £12,000 more than was budgeted for the whole year.

The city's Labour MP, Gerry Steinberg, has expressed concerns at the future of the £14m flagship theatre, less than two years after it opened at the centre of Durham's Millennium development.

But the city council's Liberal Democrat leadership has pledged to turn around the Gala's fortunes.

Council leader Sue Pitts told the council cabinet this week that the situation was slowly improving and pledged to take radical steps to address the issues at the theatre.

She said the theatre operation would be 'properly meshed' into the running of the city council, making better use the existing skills of the authority's workforce.

The board will be made up of herself, another councillor, up to four senior officers, including the council's chief executive, plus 'at least two outside people.'

Coun Pitts said the council plans to look at examples of good practice in the running of similar-sized complexes, including a community theatre in Lichfield, Staffordshire, and at Darlington's Civic Theatre.

There had been healthy pre-sales on tickets for the pantomime Cinderella, while a second cinema screen in the spring will further boost income.

* Meanwhile, the council's investigation into a staff Halloween party has concluded.

Findings revealed that it was authorised, the building's security was not at risk, no alcohol from Gala stock was consumed, and no evidence of drug misuse could be established, although an ambulance had been called for genuine health reasons to attend to a party-goer.

The council's deputy chief executive, Brian Spears, said: "A full report will be given to cabinet in the near future and conclusions will be available shortly after.

"In the interim period, the council will take any disciplinary action deemed necessary."