Coronavirus: Welsh arts organisations 'losing £1.4m a week'

Organisations supported by the Arts Council of Wales are losing £1.4m a week, its chief executive has said.

Nick Capaldi warned the Wales Millennium Centre in Cardiff could lose £20m over the current financial year.

He told a meeting of the Senedd's culture committee the industry was "on its knees" and would need "careful support" if it was to survive.

He said cash flow was the biggest issue and groups who are least dependent on public money were worst affected.

"Organisations like Chapter in Cardiff, Galeri in Caernarfon and the Wales Millennium Centre - less than 20% of their funding comes from public sources," he said.

The UK government's furlough scheme has been "a real lifesaver for a large number of organisations", Mr Capaldi said.

But he was concerned if the scheme was to come to an end there was a "real risk and danger of casualties in the industry".

Around a third of the arts council's "major portfolio organisations" were critically dependent on that support, he said.

He explained that most organisations, particularly those in the performing arts, were "not imagining that they will be back in serious business much before Easter of next year".

"This very important aspect of Welsh economic and cultural life is on its knees and it will be the last out of lockdown.

"It's going to need our careful support and nurturing if it's to survive in the longer term," he told the committee, meeting via video link.

He said the arts sector was "holding our own in Wales, and that's largely because of the support and co-operation we've had from the Welsh Government in helping to plug the gaps where the UK government hasn't been able to help".

"But we're clinging on by our fingertips."

The committee heard the Arts Council of Wales had provided emergency grants for individuals of £2,500, and grants for organisations to offer more long-term stability of up-to-£35,000.

Of a total fund of £7.5m, £2m has been budgeted for the grants for individual who work in the arts.

The remaining £5.5m has been allocated for supporting organisations.

A total of 71% of applications for the first round of individual emergency grants were successful, but Mr Capaldi expressed surprise the number was not higher.

"There were a lot of individuals who were outside Wales who were applying and there were a number of difficult conversations about eligibility."

He said applications from boy band impersonators had "stretched our definition of public cultural benefits".

Raising concerns about social distancing measures, Mr Capaldi said the Wales Millennium Centre would "only be able to sell one seat in six" if it was to apply current rules.

"So Lion King to an auditorium of 300 doesn't make sense financially and it's probably a pretty poor audience experience as well."