Councillors adopt recommendations from Glasshouse strategic review

COUNCILLORS discussed and noted a strategic review into the operation of the Glasshouse at Port Macquarie-Hastings Council’s 19 March meeting.

The review extended over a 24-month period and is an “evidence-based assessment” of the Council-owned cultural and entertainment asset.

After an initial motion on the review was brought forward by councillor Mark Hornshaw, a series of amended motions were led by councillors Lauren Edwards, Nik Lipovac and Rachel Sheppard.

All amendments were voted down and a majority of councillors eventually resolved on a seven-point motion.

In part, the motion acknowledged “some community concern exists regarding the operating deficit of the Glasshouse” and noted that the Strategic Review identified “utilisation and yield uplift, improved reporting transparency, and lifecycle asset management as the most realistic mechanisms to strengthen financial sustainability over time”.

Council adopted the 10 recommendations in the Strategic Review, including a KPI framework and reporting cadence, development of the 2026-30 Glasshouse Plan and a shift to activity-based reporting.

Council also resolved to consider alternative delivery and operating models for the facility.

Speaking to his motion in Council Chambers, Mr Hornshaw said, “The strategic review shows quite clearly that we are falling well short.

“Studio utilisation is at 29 percent and theatre utilisation at 43 percent.

“That is a lot of empty space in a facility that should be full of life.

“Financially the position is quite sobering.

“About 4.7 million in costs, 2.1 million in revenue, leaving a 2.6 million deficit to be covered by ratepayers.”

According to a statement from Port Macquarie Hastings Council, the review found that while providing the community with free civic and cultural services, there was notable economic benefit from all Glasshouse operations.

“Every $1 million invested by PMHC led to approximately $7 million in Gross Regional Product and 76 full-time jobs being supported,” the council statement read.

Mayor Adam Roberts said Council’s (PMHC) funding of the Glasshouse is a strategic investment to deliver public benefits which include “cultural access, participation, economic benefits to local business, education and community connection”.

“The Glasshouse has always required community subsidy, which has decreased significantly since the building was established in 2009. This funding model is the same as other similar regional venues,” he said.

“As well, the commercial streams, such as live music touring events, generate 58 percent of the operating income which offsets part of the cost of running the facility.”

Council General Manager Robert Fish said the review’s analysis and assessment included distinguishing between the community and commercial services streams.

“The distinction is important because the Glasshouse is not a single purpose performing arts venue and its value can’t be assessed solely through ticket sales or occupancy rates,” Mr Fish said.

“It’s a civic asset the Council has chosen to fund that delivers significant benefits to the community, including cultural access, participation, education programs and community connection.

“Since 2010, the Council’s subsidy has generally reduced, and the Glasshouse management have in recent years successfully managed operations to achieve a net cost to Council being less than budgeted.

“The annual cost to the community represents about $31 per resident, which is at the lower end of the range when compared with similar regional venues which is between $25 to $94 per resident.”

While the scope of the review assessed the Glasshouse’s role, performance and operating context, it did not revisit PMHC’s ongoing commitment to supporting the Glasshouse’s purpose as an arts, cultural and entertainment centre for the Port Macquarie Hastings region, nor it remaining a business unit within PMHC.

The strategic review is considered a precursor to the development of the Glasshouse Plan 2026-30, which is due to be presented back to Council by November, bringing the review’s recommendations into effect.