Page last updated at 13:15 GMT, Friday, 31 October 2008

Delay to design centre bail out

The Lighthouse (photo from Page & Park Architects)
The Lighthouse in Glasgow said its budget deficit was about 300,000

Scotland's centre for architecture and design will have to wait until the end of November to find out if a financial rescue package has been agreed.

The Lighthouse, based in Glasgow, is facing a 300,000 budget deficit.

Glasgow City Council has now referred a decision over bail-out proposals to its finance sub committee.

It will scrutinise plans to offer a loan of 250,000 and increase core funding. A decision by the full council is expected at the end of next month.

Earlier this week, The Lighthouse said it had suffered two major setbacks in relation to its finances.

One of these involved a decision by the Scottish Government not to invest in future Six Cities Design Festivals.

The Lighthouse said it had retained the expertise of the core team to undertake development work and these costs and associated redundancy costs had been a major contributing factor towards the loss.

'Unanticipated costs'

The centre also agreed to put together the Scottish stand at the 2008 Venice Design Biennale programme.

This generated "unanticipated costs" which were not covered by the Scottish Government grant for the project.

Under the proposed rescue plan, the centre's management and business plan would be restructured.

More space at its Mitchell Lane venue would also be freed up for revenue-generating corporate events.

Provisional agreement has already been reached between Scottish Enterprise and the Scottish Government over financial backing.

Glasgow City Council is being asked to allow the centre to repay a sum of about 245,000 in the form of a 10-year interest free loan.

The council will also be asked to provide a further 50,000 core funding next year and contribute 100,000 for property refurbishment works.

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