Edinburgh's Festival Fringe is to be provided with a short term financial support package of £250,000 from a group of key funders to tackle cash-flow problems.
The Fringe experienced serious ticketing difficulties in the run up to and during the 2008 summer festival season following a problematic system changeover. As a result, the organisation was forced to commit a substantial investment to deliver a successful festival and now require financial assistance to tackle resulting cash-flow difficulties.
The City of Edinburgh Council has agreed to provide a loan of £125,000, the Scottish Arts Council will make a one-off grant payment of £65,000 for organisational development and the Scottish Government will provide an advance of £60,000 of future funding. Scottish Enterprise will provide specialist business analysis and development advice to support the Fringe into 2009.
Officials from the supporting organisations will form a monitoring group to help set a range of financial and operational targets for the management of the Fringe as part of the conditions of support.
City Festival & Events Champion Steve Cardownie said the funders are "confident that the Fringe has a bright future."
"Many cities across the world have copied the Fringe model but Edinburgh's Fringe still stands head and shoulders above the rest," he said.
"Although this funding package is significant, part of it is a loan and part was already in the pipeline. This is cash-flow assistance only, which demonstrates the underlying strength of the Fringe business model."
He added: "The Fringe is a vital part of our cultural landscape and our economy and we will ensure, through our monitoring group, that the organisation is on a firm footing for the future."
Fringe General Manager Tim Hawkins welcomed the announcement saying:
"This very welcome support package will allow us to stabilise our immediate cash flow challenges. The commitment from the City of Edinburgh Council, SAC, Scottish Enterprise and the Scottish Government recognises the festival's importance, not just to Edinburgh but Scotland as a whole and we look forward to building a strong relationship with funding partners which will allow us continue providing an economic benefit of over £100million to Edinburgh and the wider Scottish economy."
Minister for Culture Linda Fabiani said the funding would "provide stability and allow the Fringe to develop for the future."
"This reflects our shared confidence in the Fringe as it plans for another successful year in 2009, the year of Homecoming."
Iain Munro, Co-Director of Arts, Scottish Arts Council, said: "We recognise the value of the Fringe's significant contribution to both Edinburgh's summer festivals and Scotland's cultural life and we look forward to working closely with the Fringe Society to resolve the challenges it faces."