FEASIBILITY_STUDY , item 14. PDF 1 MB - Meetings, agendas and ...

A feasibility study prepared for the Black Box TrustNovember 2011gain their perspective on the role of the venue as a culture, arts and events space andunderstand its demand going forward in relation to the opening of the new MAC. This anecdotalevidence is detailed in section 3 (Assessment of Need and Demand).We also consulted with another similar performance space, The Bongo Club in Edinburgh. Thefocus of these discussions was on the funding, organising and operating structure of thesevenues to compare and contrast with that of the Black Box. This case study information isincluded in section 5 (Governance).2.1 Policy review2.1.1 NI ExecutiveIt is important to consider the future operation of the Black Box in light of a period of significantpublic sector cuts. The Northern Ireland Executive‟s four year budget (2011-2015) representsthe most challenging spending review to face the government for over a generation.The Department for Culture, Arts and Leisure was one of the hardest hit in the initial draftbudget, with a 17.7% current expenditure reduction in real terms over four years. Although therewas a slight increase in funding identified in the final budget, DCAL will encounter a 16.7%reduction in current expenditure in real terms over 4 years.ACNI have a capital budget of £3.83 million in financial year 2011/12 which will reduce to£0.56m in financial year 2012/13 and will be further reduced in financial year 2013/14 to£0.45m.The Department for Social Development was also affected by the plans to reduce overall publicexpenditure of £4 billion over the next four years. Starting with the Department‟s 2010/2011baseline of £521.1 million, there will be an 18.2 percent increase in the additional cumulativerevenue allocations between 2011 and 2015, as well as a 17.8 percent decrease in theproposed budget cuts over the four year period. This will result in a net income of 4 percentequating to £2.3 million. The Department‟s budget increase over the following four years is only0.4 percent.The impact of the final budget has increased competition for limited departmental andorganisational budgets at a time when existing or planned capital projects will be looked afterfirst. The budgetary constraints will also eliminate the potential for any new capital investmentsover the next four years.2.1.2 NI Programme for GovernmentThe Northern Ireland Programme for Government (PfG) sets the strategic context for annualbudgets and the Investment Strategy for Northern Ireland (ISNI). The last PfG covered theperiod 2008-2011, detailing it vision prior to the current economic downturn. This being thecase, it is unlikely that the commitments outlined with the programme will be delivered given thecurrent budgetary constraints facing the public sector.The new Executive is currently in the process of agreeing a new PfG; therefore we haveconsidered the operation of the Black Box in light of the existing programme for Governmentgiven it is the most recently available statement of intent by the Executive.5