Welsh National Opera (Hansard, 31 January 1991)

§ Mr. David Hunt

I am glad that the Arts Council of Great Britain has now agreed to increase its annual grant to the Welsh National Opera by £300,000 with effect from 1991–92 and that this will also be written into the company's baseline for the succeeding two financial years. This additional grant will enable the WNO to fulfil its planned touring commitment in England and undertake a full programme of activity in future years without incurring trading deficits.

I have also been concerned about the drain on the company's resources occasioned by the high level of interest payments on its accumulated deficit. I have, therefore, exceptionally agreed to transfer £842,000 from within my existing provision to the Office of Arts and Libraries so that the Arts Council can be put in a position to eliminate the projected deficit before the end of this financial year.

I have taken this action in recognition of the Welsh National Opera's unique contribution to Wales. Not only has the company received international acclaim for the quality of its work, but it has presented a positive image of Wales abroad and has supported efforts to promote Wales's economic interests.

The management of the Welsh National Opera company is being given an unparalleled opportunity to build on a secure financial base. It is essential that it should 612W take all appropriate steps to ensure that the company is managed effectively, efficiently and economically. There can be no excuse for further deficits.

I welcome the fact that further arrangements are being made for the Arts Council of Great Britain and the Welsh Arts Council to monitor the company's management and financial performance to ensure that effective budgetary controls are in place. My right hon. Friend the Minister for the Arts also intends to keep a close watch on the situation.