AEC in trouble?

Less than a year after the Albany Entertainment Centre opened, the immediate future of the $70 million dollar facility is now uncertain.

The State Government has still not entered negotiations with the City of Albany on managing the complex beyond July 2012, despite repeated requests from the city to do so.

Culture and Arts Minister John Day is refusing to accept the city is not in a position to take over ownership of the AEC by the middle of next year.

It poses the question whether the state-of-the-art building will close if agreement cannot be reached by then.

The city is still waiting to hear back from the State Government about the centre’s management, two months after council delegated power to its chief executive Faileen James to finalise the Draft Entertainment Centre/Waterfront Agreement 2011.

Ms James said it was disappointing Mr Day had decided not to negotiate on the matter.

“The city will not have the financial capacity to accept transfer of the AEC on July 1, 2012 on the terms the Minister proposes,” she said.

“Further, the Minister of Local Government has encouraged the City of Albany to adopt a rigorous approach to ensuring its fiscal sustainability.

“This position is contrary to the position of the Minister for Culture and the Arts.”

The State Government’s position was made clear in last month’s State Budget, which did not include any forward estimates for the operation of AEC beyond 2012.

In a 2007 agreement, the city committed to take responsibility of the AEC, but claims the agreement did not stipulate a transfer date.

Mr Day said the centre would close if the State and city could not reach agreement.

“The State Government continues to work with the City of Albany towards July 1, 2012 when it plans to transfer the ownership of the building to council,” he said.

Mr Day refused to comment further, saying to enter into more discussion would be to speculate.

Albany MP Peter Watson said he wanted both sides to sit down and negotiate the centre’s ownership to find a solution which would work for both parties.

“It is very important to our community and I think wise heads should prevail,” he said.

“The State Government will probably have to give a bit of leeway to the city with their current financial problems.”

AEG Ogden, who specialise in venue management, are currently contracted by the Perth Theatre Trust, a State Government statutory authority, to currently manage the AEC.

Perth Theatre Trust general manager Alan Ferriss said everyone wanted the AEC to work.

“We have got two years and we are still within that timeframe and we are working closely with the City of Albany to negotiate the best outcome for the centre,” he said.

“That is ongoing and it won’t be solved quickly, but we will come to a position between the two parties I am sure.”

Mr Ferriss said the uncertainty around the AEC was not ideal.

“It’s a significant regional facility … and the ongoing funding of it needs to be worked through with all parties,” he said.

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