A LEADING voice in the North-East believes there is light at the end of the tunnel for Durham's Gala Theatre.

Less than two years after opening, the theatre is running up large losses, put at £446,000 for the first seven months of this financial year, on the back of a deficit of more than £900,000 in its first year of operation.

Durham MP Gerry Steinberg this week described the showpiece Millennium development as financially "on the rocks" and expressed his fears for its future.

But city council leader Sue Pitts has pledged to gradually reduce the deficit and, with a new management structure being put in place, to begin to make it work.

Coun Pitts, who described Mr Steinberg's comments as unhelpful, said: "It is like turning a tanker. It will not happen overnight, but we are getting a grip of it."

Andrew Dixon, executive director of the Arts Council England, North-East, said there were plenty of examples of successful theatre in the region, which the Gala leadership could take inspiration and encouragement from in the coming months.

But he said the need for council subsidy was universal, regardless of the venue.

He said: "There isn't a theatre in the country that does not receive some form of local authority subsidy.

"The important thing is that the local authority should see its theatre investment as delivering a return in terms of programming, educational activities offered, and the audiences it brings in.

"In a way, the more you invest, the more you get back.

"Over the years, we have seen a number of theatres across the country having difficulties but, more recently, in the last three or four years, we have had some real success stories in the North-East, like the Theatre Royal.

"It is enjoying the highest level of audiences it has ever experienced.

"Northern Stage, at Newcastle Playhouse, have been very successful in attracting a very young audience, and recently announced a £25m redevelopment to establish them with a more European outlook.

"The Sunderland Empire has had its troubles in the past, but it has now firmly established itself.

"Then there are examples like the Live Theatre, just off the Newcastle Quayside, which has just enjoyed audiences of over 90 per cent in its recent collaboration with the Royal Shakespeare Company.

"In fact, seat occupancy in the North-East is higher than in other parts of the country, at 64 per cent, on average."

Mr Dixon said there was not one particular path to success.

He said: "You have places like the Civic Theatre, in Darlington, which is local authority-led, but fantastically well run.

"With the Gala, the important thing is to start by looking at the programme policy of the theatre, and who it is trying to reach in terms of its audience and the educational activities it offers.

"Then it needs to examine what is the best management structure to deliver that."

Mr Dixon also said the Arts Council has offered to help the council.

He said: "There's no one perfect example to follow.

"There are good local authority-run theatres and others independently run with strong local authority involvement on its board.

"You hope that a new theatre like the Gala can be successful from day one, but there were some unfortunate decisions with the previous management and they have not really recovered."

How the region's theatres compare Gala Theatre, Durham 81,000 £435,000 a year* Durham City Council Durham City Council Two years next month 65 to 70 % (inc. cinema) 512 (theatre auditorium) * Budgeted for £435,000 in the current year Newcastle Theatre Royal 270,500 £742,000 a year Newcastle City Council The Theatre Royal Trust Built in 1837 Averaging 70% 1,280 The Arc, Stockton 181,500 in borough £220,000 a year Stockton Arts Centre Ltd Stockton Arts Centre Ltd Three years old* 61% across all productions Theatre: 266, The Point: 424, Cinema: 131, Studio: 88 * Open in its present guise for the past six months Sunderland Empire * Receives a management fee for running the theatre from the city council Approximately 300,000 None* Sunderland Empire Trust Ltd Clear Channel Entertainment 96-years-old Unavailable 1,866, plus 132 standing Billingham Forum 50,000 - 60,000 £240,000 a year Stockton Borough Council Riverside Leisure Promotions Opened in 1967 Approximately 75% 649 Darlington Civic Theatre 100,000 £1m a year* Darlington Borough Council Council's arts department Built in 1907 Unavailable Approximately 900 * including the Arts Centre, educational outreach programme, galleries, visual and public art, etc

Published: 09/12/2003