Perth Theatre Trust considers new venue management models

Venue managers AEG Ogden will run Western Australia's premier stage venues for an extra six months from mid 2014 to give the Perth Theatre Trust extra time to consider future management options.

According to The West Australian newspaper, Trust and Western Australian Government officials are currently assessing a report by Pracsys management consultant Michael Chappell which presents three basic models, and variations of those models, for running the Trust's five venues: His Majesty's Theatre, Perth Concert Hall, State Theatre Centre of Western Australia, Subiaco Arts Centre and the Albany Entertainment Centre.

AEG Ogden has run the venues through its AEG Ogden (Perth) Pty Ltd since 1999, with its current contract set to expire in the middle of 2014. However, an optional six-month extension has been exercised until the end of 2014.

Presented to the Trust Board on 1st November, the Pracsys report is being checked, according to Trust Chairman Peter Blaxell for "due diligence."

Extending AEG Ogdens contract for a further six months, Blaxell explained "should give us the time we need to make sure that any new system is the right one," adding "a lot of it will depend on the financial impacts. It is not a simple task, it is much more complex than I expected."

As an example, the food and beverage services are currently run by AEG Ogden but could be split across different operators at different venues or even among different operators within each venue.

Blaxell said he hoped to have a clearer picture and a decision in January, adding "we have a one-off opportunity to make probably the most important decision for the next decade or so for the performing arts venues and we have to make sure it is the right one.

"We are not going to skimp on the research and financial modelling that is required to make sure we make the right decision."

Blaxell told The West Australian that he is determined to find consensus in the performing arts sector based on people understanding the full financial implications, adding that he also had to make a sound case to the Western Australian Government in case additional funds were needed in the short-term to make the changes needed for the venues' long-term sustainability.

Blaxell has expressed embarrassment about the $9 million subsidy needed to run His Majesty's Theatre, the Perth Concert Hall, State Theatre Centre, Subiaco Arts Centre and Albany Entertainment Centre, believing that the venues must attract more audiences and be more efficient money earners.

Any management model should balance three sometimes competing public-interest imperatives of attracting diverse and top-quality shows, supporting local stage productions and maximising efficiency for taxpayers.

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