Eisteddfod funding deal approved

Eisteddfod organisers had contemplated going into bankruptcy

The National Eisteddfod could be on a steadier financial footing after a deal between council leaders and assembly Culture Minister Alun Pugh.

Talks have led to an agreement in principle that no one local authority will have to finance the festival.

It would mean the cost would be spread across all 22 councils, and it would not need to go to Liverpool in 2007.

Council leaders and Mr Pugh said they backed establishing a "firm financial future" for the eisteddfod.

The eisteddfod has long had financial problems, and even considered bankruptcy at one stage in 2004.

Liverpool is the only area to have made a concrete offer to host the event in two years' time, but the possibility of moving Wales' leading cultural festival to England has been controversial.

Discussions were held on Tuesday night in an attempt to find a solution, and the Welsh Local Government Association (WLGA) and assembly government said they had had a "highly productive meeting".

In a joint statement they said: "We have in principle agreed to support the eisteddfod in establishing a firm financial future.

Alun Pugh had already ruled out a 'blank cheque' for the event

"This support is conditional upon a continued programme of modernisation, both to ensure ongoing efficiencies and to broaden the eisteddfod's appeal, which are essential for a sustainable future.

"Further detailed discussions between all parties will now follow".

'Peaks and troughs'

Before the announcement, Mr Pugh had spoken of the problems local councils faced when the eisteddfod was staged in their area.

Mr Pugh said councils had had to "put their hands into their budgets to make a big single contribution" which created larger "peaks and troughs in local budgets".

The minister said a system where all councils made a regular contribution each year would "even out those cash flow difficulties".

Before the talks, Alex Aldridge, leader of both the WLGA and Flintshire Council, spoke of the benefits of all local authorities contributing.

Mr Aldridge said it would ensure "that no one authority will be faced with a single large contribution while at the same time enabling everybody - all 22 councils - to potentially gain the benefits of having this wonderful cultural event in their area".

Mr Aldridge had also said Flintshire had never committed itself to hosting the 2007 event but would be happy to do so if the funding deal was agreed.

"It's too big a burden for any council to take on single-handed," he said.

"But I'm hopeful that we can get over this problem and get an agreement between all the local authorities."