Agenda item

This report provides background information on the operations of Opera Holland Park since it was transferred from Council ownership in 2015. A review of OHP’s facilities and services was due in Autumn 2023, to consider their journey to become financially independent.

At the Chair’s invitation, the Deputy Leader and Lead Member for Employment, Culture & Economy, supported by Terry Oliver, Director for Cleaner, Greener and Cultural Services, introduced the report and raised the following points:

1.  Expressed disappointment that the business plan was yet to be provided by Opera Holland Park and that the Chief Executive was unable to attend the meeting, due to personal reasons.

2.  Informed the Committee that Opera Holland Park confirmed that they would provide the business plan by 1 February 2024.

3.  Opera Holland Park’s licence covered the use of the Holland Park site, but not other spaces owned by the Council which they occupied. This was an area that the Lead Member was keen to tidy up.

The Chair then invited the Committee to discuss the report and the Committee:

1.      Asked about the obstacles that Opera Holland Park had been facing. The officer explained that there were a number of personal reasons, including the passing of their finance director just before Christmas 2023. However, they were aware of the importance of working with the Council. The Lead Member added that the Covid-19 pandemic had resulted in significant financial impact. They also relied on third party support and the operating costs were high. For example, the process of putting up and taking down the awnings, cost around £400,000.

2.     Queried how realistic it was that this sort of organisation would achieve full financial independence. The officer clarified that support from the Council was only through the free use of assets, they did not provide any funding or a grant. Property colleagues were working on a valuation of the cost of the assets that they used without charge and the business plan should incorporate such costs. The Lead Member explained that they had been quite successful in operating independently since the decision was taken in 2015 to transfer it from Council ownership. The Council also provided the Tabernacle free of charge to Notting Hill Carnival Limited and Carnival cost the Council £1 million a year.

3.     Questioned whether there was any risk that the current opera season would not go ahead. The Lead Member clarified that there would be no financial impact to the Council, the only impact would be that the awning would not be put up and it would be a disappointment for the community. Opera Holland Park had already started advertising the programme for the current season, so the Lead Member was confident it was going ahead. The officer added that they would let the Committee know if they had concerns around this, following their meetings with Opera Holland Park in the next few weeks.

4.     Enquired how the value of the community work was measured against the ability of Opera Holland Park becoming financially independent. The Lead Member explained that the Council took a social value approach to leases, and they would look at the community output of the organisation. The desire was to receive some financial return from the spaces they occupied. The Committee noted that they felt the emphasis should be on the contribution to the borough first, and then on the finances.

Actions to be completed, with any information requested by the Committee to be sent to the Governance Officer for circulation:

1.  The Director of Cleaner, Greener and Cultural Services to provide a written update regarding next steps, once the business plan has been received and reviewed by officers.