The Stage

Redundancy fears for third of Scottish Opera staff

Published Tuesday 20 April 2004 at 11:10

Scottish Opera chief executive Chris Barron has admitted that more than a third of its full-time staff are facing redundancy as the company pays back a £4 million loan.

Barron’s bleak appraisal of the company’s current cash crisis was contained in an letter to its 240 full-time employees. In it he said that SO was currently working under “intolerable circumstances” and that he was frustrated by the “slow and torturous” progress of discussions with the Scottish Arts Council and the Scottish Executive.

It is understood that Scottish Opera has submitted two plans to the two bodies. The first of these involves the repayment of a £4 million loan over the next two years - effectively cutting the annual grant of £7.5 million to £5.5 million a year - which would lead to “far more than 80” job losses at the company, according to industry sources. The second plan involves repaying the loan over a longer period, with fewer resultant job cuts.

Barron explained to staff that the manner in which the SAC and Scottish Executive expected the company to repay the loan of £4 million was the critical factor in determining how many staff would lose their jobs.

“Crucially, it is the resolution of the advanced cash issue which will dictate the severity of the downsizing needed during the next two years rather than the ability to working within the ‘known funding’ of £7.5 million,” he wrote.

The need for jobs cuts had been determined by two factors. The first is that the company is the same size as it was in 1999/2000 when it was saved from certain closure by extra cash aid from the Scottish Executive.

The second issue is that SO’s standstill grant of £7.5 million a year has no prospect of being increased. The lack of money means that the present situation was “deeply depressing” said Barron. He added, however, that he was hopeful that “in the next two years, we will be able to rebuild for the future in 2006/2007”.

He added: “I am not pretending that today the situation does not look bleak, but for the company’s sake my sights are on a future and an organisation that has a more harmonious relationship with Scotland’s leaders - working in a stable, creative environment.”

While it awaits a decision on its future from the SAC, and, ultimately the Scottish Executive, which controls the purse strings, the company is currently working on a series of productions, including La Boheme, Minotaur and Eugene Onegin.