Concerns over rescue plan for iconic Blackwood Miners’ Institute

Martin Shipton

The leader of a council opposition group says firmer assurances should be provided about the future of Blackwood Miners’ Institute, the iconic cultural venue which has faced closure because of spending cuts.

Cllr Nigel Dix, who leads the Independent group on Caerphilly council, says he is not satisfied with the authority’s rescue plan aimed at securing the venue’s survival.

Blackwood Miners’ Institute (BMI) is described on the Welsh Government’s Visit Wales website as “one of the most exciting performing arts venues in south Wales, creating and presenting the highest quality professional and community arts for a diverse range of audiences and participants. Each year the theatre hosts hundreds of events and participatory activities spanning drama, dance, family performances, live music, opera, literature and comedy, ensuring everybody can experience something to suit their tastes.”

But Caerphilly council decided it could no longer afford to keep it open and announced plans to close it.

Grant

Now it has been temporarily rescued following an additional grant of £210,738 from the Arts Council of Wales.

Under a 14-point plan proposed by the council’s cabinet, the institute would leave the council’s ownership and be taken over by an independent trust by July 2026.

Cllr Jamie Pritchard, deputy leader of the council, said, “We are working hard to ensure we can secure a bright new future for this historic venue, without the need for high levels of public subsidy. This strategy not only aims to secure the financial sustainability of the venue but also focuses on creating a roadmap toward greater independence from the local authority over the next few years.

“With the 14-point plan now formally adopted, as cabinet, we are 100% focussed on working with the transition group to deliver on the objectives.”

Under present arrangements, the council’s cabinet members collectively act as the trustees of a trust owned by the authority.

Delegation of powers

The report sought approval from the cabinet to endorse a delegation of powers so that any necessary practical steps can be actioned by officers in the Blackwood Miners’ Institute (BMI) Transition Project Group towards the establishment of a new organisational structure.

The council report states: “As the sole corporate trustee, the local authority has a legal obligation to manage the charity in compliance with its governing document. Additionally, it is required to account for the charity’s finances in accordance with the provisions of the Charity Act 2011. In fulfilling its duties, the local authority must also act in the best interests of the charity, in its capacity as trustee.

“The council in its capacity as a local authority is under financial pressures to save £45m and as trustee … is exploring a new approach to its operation with the aim of running independently of the local authority.

“In order to undertake the transition, an external adviser has been engaged and consulted, working closely with officers on behalf of the trustees to explore alternative delivery models.

“Following the successful application for the Arts Council of Wales ‘Resilience and Jobs Protection’ funding, BMI is well-positioned to ensure a seamless transition and achieve greater autonomy from the council, securing its long-term sustainability.”

Audit Wales

However, the report goes on to state how Audit Wales had raised a matter of concern in their independent examiner’s report on the financial accounts regarding the cash and cash equivalent balances within the Balance sheet. It stated: “The BMI finances are managed by the council with all transactions recorded on the council’s ledger and all cashflows through the council’s bank account. This has meant a separate cash flow statement has not been prepared for the charity as all cashflows go through the council’s main bank account. This issue must be addressed and rectified to enable the successful progression of the 14-point plan.

“The cabinet, in its role as trustees, is therefore required to endorse a delegation of powers so that any necessary practical steps can be actioned by officers in the BMI Transition Project Group towards the establishment of a new organisational structure.

“The purposes of the charity, as outlined in the Trust Deed, include: Promoting public awareness and participation in the arts, including music, dance, drama, literature, and the visual arts. Encouraging the education and development of unemployed individuals, young people, and pre-school children, focusing on their mental and spiritual capacities. Educating the public on the geography, history, and architecture of the area, while also addressing the Institute’s responsibility in preventing drug and alcohol abuse.

“As the sole trustee, the council has a legal obligation to manage the charity in strict accordance with its trust deed and to act solely in furtherance of its stated objectives. Additionally, the council is required to account for and report on the charity’s activities separately, in compliance with the Charities Act 2011. In line with charity law, all charities must produce annual statements of accounts.

“Cabinet, in its capacity as trustees, will be aware that the future of BMI was uncertain in 2024, with a proposal by the council as local authority to mothball the venue in December 2024 to save the £347,000 subsidy it makes to the BMI in order to address its ongoing financial difficulties. During the consultation period, there was significant public opposition to the proposal, and it became apparent that there was a conflict of interest arising as a result of the council acting in its capacity as the local authority and the council in its capacity as corporate trustee.

“As trustees, the cabinet is legally obligated to act solely in the best interests of the trust and this report is actively exploring new ways to ensure the venue remains operational. The first steps have been to develop a transition strategy, and various funding options and delivery models have been explored for BMI.

“The work undertaken to identify alternative funding sources and operational models will be pivotal in ensuring the long-term viability of BMI and its ability to continue serving the community without ongoing reliance on council subsidies. This matter will be fully investigated by the appointed feasibility consultant, who will assess the viability of these options and provide recommendations for the future operational structure of BMI.”

Reassurance

Cllr Dix, who himself represents Blackwood, said: “I think we need greater reassurance about the course of action that is being proposed.

“Clearly there is a conflict of interest, with the cabinet having responsibility for the institute but also for the council budget as a whole. We need to be sure that this conflict is properly managed and that all legal safeguards are in place.

“We also need to ensure that the future of the institute is wholly secure as a cultural venue for the future. If it is no longer owned by the council, we will lose control and that could be more difficult to achieve. I believe we need greater assurances and should take time to ensure we get the right solution.”