I'M writing regarding the new step forward taken to secure the future of the Bolton Octagon Theatre. The Board and funders of the organisation have agreed to work with SCOT (The Support Campaign for the Octagon Theatre) to implement the Board's rescue and recovery programme to enable the theatre to be a producing company.

Last August, the accumulated deficit was projected to reach £500,000 by the end of March, 1999. On a turnover of £1m per annum, the Octagon Board decided this was not a tenable position and would have been forced to cease trading in February had substantial extra funding not been secured.

In order to achieve this, a rescue plan, informed by independent consultants, was submitted to funders at the end of January, 1999. This plan was accepted by the Arts Council of England, Bolton Metropolitan Borough Council, North West Arts Board and the Association of Greater Manchester Authorities; and, in February, the Bolton Octagon was awarded £260k on the basis that they would pay off the remaining deficit within two years in line with their budget plans.

The Bolton Octagon has received the following statements of support from Sue Harrison, Chief Executive of North West Arts Board: "All the funders are anxious to ensure that the theatre continues to play a valuable role in the local community and that the building is well used and enjoyed, particularly following the recent refurbishment funded through the National Lottery and other major funders.

"North West Arts Board supports the Octagon and wishes to see it thrive. The

theatre's success has been built on its reputation as a first class producing theatre. North West Arts Board would wish to see this success continue but this will only be possible in an organisation that can operate within its means, and which has established a financial base that is sustainable and well managed.

"The Octagon's plan sensibly minimises the risk to the company in the first year - and allows an increase in its in-house productions over the next two years. This was clearly the best available option.

"North West Arts Board has contributed significantly to the rescue funding package and has also committed to a substantial increase in revenue grant aid during 1999-2000 in support of a high quality producing theatre for the future.

"It is essential that all supporters of the Octagon Theatre work together to ensure that the company can look forward to renewed success."

I firmly endorse Sue Harrison's statements. The rescue plan has secured substantial sums of public funding to prevent closure and through an initial mixture of in-house productions and touring work aims to re-establish the Octagon on a sound financial basis as a producing theatre. The plan allows two years for recovery but if SCOT's fund-raising activities can significantly shorten the recovery period, the outcome will be welcomed by everyone. Members of the Board wish to work constructively with SCOT to this end.

On a personal note, however, after eight years in the position, I will be standing down Chair later in the summer at the next Board meeting - a decision postponed only because of the financial difficulties of the past year. I will continue to work closely with colleagues as a member of the Board to help ensure a positive outcome to the next stage of the theatre's recovery. The Octagon is a wonderful asset to Bolton as the work produced even during the period of crisis has shown. It is good to see so many people rallying to its support.

Barry Wood

Chair of Board of Trustees

Octagon Theatre

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