The council says next year's festival will go ahead
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The Bradford Festival has been given a stay of execution after council leaders voted to carry on with the event's cash-strapped management company.
But they have told the Bradford International Festival Company that it must now draw up plans showing how it will turn around its finances.
A row had been brewing between Bradford City Council and the company, which has run up debts of £192,000.
That was despite the council injecting £328,000 a year for the three years up to 2004 into the festival company's coffers.
Even keel
The council's executive met on Tuesday night and voted to allow the company's contract to run its course until next year, when the situation will be reviewed.
The council's assistant chief executive David Kennedy said: "The main concern of the council is to ensure there is a good festival next year and I think that will happen.
"The festival company has got to come forward to us with proposals to put their finances on an even keel."
He denied that the council had failed to properly scrutinise the company, allowing it to sink deeper into the red.
He added: "I think the fact that we considered this before the scrutiny committee and brought into the public domain our concerns shows that we were scrutinising properly."
Councillor Anne Hawkesworth, executive member for the environment said: "We owe it to council tax payers to carefully consider the issues involving the ability of the company to deliver the festival in 2004.
"We are satisfied that the company can deliver a first class festival but we had concerns about their financial position.
"However, following the receipt of further information from them we have now decided to continue working with them."
There was widespread criticism when the summer event was handed to the private sector two years ago.
A campaign called Trust in Bradford has petitioned for a takeover by a charitable trust with council funding.
A spokesman for the festival company said that directors had only taken 70% of their salaries in the past two years.
They had also raised more than £1m to add to their annual grant of £328,000 from the city council, he said.