#StDavidsHall - Key questions for Russell Goodway
At 5.45pm on Monday 12 December Cardiff’s economy and scrutiny committee will question Cllr Russell Goodway about his plans to privatise St David’s Hall.
Cardiff Civic Society has collated a list of questions which councillors might raise:
Questions regarding St David’s Hall paper for Economy & Culture Scrutiny – 12 December 2022
Part A - Questions and comments relating directly to the papers, collated by Cardiff Civic Society
Para 2. Most of the information that would allow the people of Cardiff to judge this proposal is being hidden. Why?
Para 3. Cabinet will be asked to approve in principle, but the Full Business Case still has to be prepared. Why?
Para 9. Point iii notes that SDH hosts 73-87 days classical music, but the AMG deal guarantees only 60 (Q&A). There does not appear to be any guarantee for music services, etc. Why is this case? Why should Cardiff school children miss out for the sake of private profit?
Para 12. This makes clear it is all about money and hence austerity. The argument that Council cannot afford the operating subsidy is justified against the ‘£53m black hole’ (Newsroom) but that will not be confirmed until Welsh Government allocates its budget. Will the council review its position should budget constraints not be as severe?
Para 13. The capital investment to restore SDH is dwarfed by that to be spent on the Arena, which the council’s capital programme sets at over £200m. In the case of the Arena it is being argued that it is financially beneficial to Council to directly fund construction, borrowing from the Treasury at below market rates, and recover it from the lease. That option does not seem to have been considered for SDH. Why not?
Para 18. This makes it appear as if AMG is a fairy godmother not a profit-making company. They will not be paying for the lease. Was the offer really ‘unsolicited’?
Para 21. We are sceptical about the claimed saving of ‘£137m over a 40-year capital repayment programme’. We are not told how much the required investment, or assumed interest rate, are. Council claim to be able to construct the Arena for £138m. That is claimed to have capacity of 17,000 compared to SDH’s 2,000 and has to be built from scratch.
Para 22. Point iv indicates this is part of a complex deal involving the Arena. Can we have more information about the relationship between the council and Live Nation and full details of the deal which encompasses the new arena and St David’s Hall?
Para 23. This reiterates that this is primarily about the annual subsidy. Maintenance could be covered by borrowing as proposed for the Arena.
Part B - Questions raised by the Senedd culture committee
i. It was noted the week before last in the Senedd “that Cardiff Council are doing the work with not just one company but with more than one company that has shown an interest in collaborating with the council on the future of St David's Hall.” And yet, the Council appear to be pursuing an option with only one company, and without explaining what (if any) evaluation of other solutions has taken place. Why is this?
ii. Why did the Leader of the Council tell the First Minister that the Council is working with more than one organisation when that is not the case reflected in documents published by the Council?
iii. There is no clarity on what other public or third sector avenues the Council have sought. Given the Hall’s status as a national concert hall, has the Council engaged Welsh Government or the Arts Council to see if any further support can be provided?
Part B2 - Letter from the Senedd to the Leader of the Council
iv. Over what period has the Council developed its Outline Business Case?
v. What stakeholder engagement has taken place in developing the Outline Business Case? Specifically, what engagement has taken place with underrepresented groups (for instance those that have protected characteristics under the Equality Act 2010)?
vi. Does the Council intend to publish its Outline Business Case, and if so when?
vii. To what timeframe is the Council working to identify a solution for the future of St. David’s Hall, including when Cabinet is expected to consider the Full Business Case?
viii. How has the Council identified the organisations that have shown an interest in collaborating with the Council?
Part C - Cardiff Civic Society’s comments in response to a Q and A issued by Cardiff Council
(includes more detail on some points in part C)
ix. The Q&A claims 'At present the classical programme, classical-related community events, and the work of the Arts Active Trust, utilises up to 73 days.' But the paper that will be discussed by the Economy & Culture Scrutiny Committee on Monday (see paragraph 9) says SDH hosts between 73-87 days per year for classical music. A 60-day guarantee opens the way to a substantial reduction. County music services, schools, youth, and community orchestras are separate from this, but all we are told in this Q&A is that 'additional dates would be available in the calendar year for other key classical and community events'. We are not told how many dates (which do not appear to be guaranteed) nor which events count as ‘key'. Why should Cardiff citizens lose out on so many days of classical and community events?
x. Will Council publish the report of the acoustic engineers, and will it commission an independent report to confirm its claim that the acoustics will not be affected?
xi. This proposal is justified by pointing to an assumed budget gap of £53m but that has not yet been confirmed. Welsh Government will publish its draft budget next week. If the budget gap turns out to be less than £53m, will Council review this decision? Council has options to reduce this gap without cutting public services. There is scope to dig into reserves. Council could also raise up to £20m a year by using its power from April next year to impose a council tax premium of up to 300% on eligible second and empty homes. Council can find the money if it chooses.
xii. The Q&A claim that the budget gap would increase significantly to upgrade the building. This confuses current and capital spending. Council has power to borrow for major capital projects, as it intends to do for the Indoor Arena, which has an Affordability Envelope of £246m, according to the Capital Strategy 2022/23. Upwards of £60m of that will not be recovered from the lease.
xiii. The Q&A claim that a ‘significant’ amount is needed to address immediate issues with more to follow. But how much? Why are the appendices to the Cabinet Report on the Conditions Survey 2021 and Conditions Survey Cost Report restricted from public view? What is Council trying to hide? This building belongs to the people of Cardiff. We have a right to know the facts.
xiv. These Q&A do not address the question of future ticket prices. AMG is a profit-making company, not a charity. Will Cardiff Council seek a guarantee that prices will rise by no more than the rate of inflation? Will there be any provision for cheaper seats for those who cannot afford to pay full price? SDH is supposed to be a facility for all the people of Cardiff.
Cardiff Civic Society’s questions prepared by Lyn Eynon
Links:
Senedd culture commitee questions 1 (Twitter)
First Minister’s questions on the Hall