The Stage

Kingston council pledges £6.4m to complete Rose

Published Tuesday 27 June 2006 at 16:40 by Nuala Calvi

Public investment in the long-awaited Rose of Kingston Theatre is to be more than doubled to £6.4 million, after negotiations with the scheme’s business backer broke down.

Kingston council is to borrow £3.4 million to ensure the venue is completed next July, amid concerns that the project will otherwise lose momentum.

Council chiefs, who must still get the plan approved, say they believe the money can be recouped by encouraging local businesses and individuals to invest smaller sums and become stakeholders in the theatre.

Council leader Derek Osbourne told The Stage: “General Mediterranean Holdings were going to put up the money but we haven’t been able to produce a deal which would have safeguarded our public interest. We are putting forward the money to give investors confidence that the theatre will happen.”

Opposition councillors have reacted angrily to the decision, which comes on top of a previous rescue package in response to concerns from the Audit Commission that the project was lacking in funds and behind schedule.

Labour group leader Steve Mama said a theatre of the Rose’s size so close to the West End would be unable to survive commercially and would end up requiring ongoing subsidy from the council. He called for a public referendum before any more money was committed to the project.

But council bosses said they had a long-standing commitment to make sure the venue, set to house Sir Peter Hall’s company, is completed.

Under the plans, the council and Kingston University, which is investing £500,000, will retain a controlling interest of at least 51%, rather than a private company owning a majority of the property.

Speaking to The Stage, Hall said: “I think what the council is doing is very imaginative, because it enables them to raise money to offset what they’re putting in.

“The total cost of the theatre is still peanuts when you compare it to others which have gone up in the last few years - it’s a real bargain.”