The countdown to the possible privatisation of the Villa Marina and Gaiety Theatre has begun.
Three private operators, which each operate major venues in the UK, have been shortlisted and have been invited to submit final detailed proposals on running the Villa-Gaiety complex by late February.
A decision on whether a private company will be brought in is expected to be made by March or April. It could take over six months later. Both venues will remain in public ownership.
Staff were given an update at a meeting organised by the unions this week.
The move follows the Scope of Government review which recommended contracting out of the Villa Marina and Gaiety Theatre.
Outsourcing aims to significantly cut the amount of subsidy needed to operate the two loss-making venues.
Expressions of interest were sought in June this year from parties interested in managing and operating the complex, with the government saying at that stage it was ‘testing the market’.
It is understood that all three on the shortlist operate significant venues including some well-known names. ‘We believe all three are experienced organisations in this field,’ said DED chief executive Chris Corlett. He insisted he didn’t want to prejudge the outcome and at the stage the department was simply ‘looking at options to find the best balance between service and cost’.
He said: ‘We are not talking about transferring ownership of a key public asset. We are looking for a private partner to operate the venue and take over the operating costs, minimising the need for taxpayers’ support. It will potentially be better for staff as well as the community and the taxpayer.
‘On-island organisations didn’t feel they were in a position to make a suitable bid. But several highly experienced organisations feel they could add value here.’ There will be full engagement with staff and management.
In May, Economic Development Minister Laurence Skelly said the complex’s net budget had increased from £1,349,700 in 2014/15, including £625,000 loan charges, to £1,489,700, including £765,200 loan charges. It had come in under budget for a fifth year.