The future of Tenby's main arts and entertainment venue is in jeopardy after the organisation that programmes the running of events at the building said it was to cease operating.

The De Valence Trust, a not-for-profit organisation formed in 2004 to programme, support and promote community events and activities in the De Valence Pavilion in Upper Frog Street, announced this week that they had been forced to appoint an insolvency practitioner to wind up the organisation due to financial difficulties.

Chairman of the board of trustees, Mr. Mike Neal, explained the circumstances that had led to the Trust's decision.

"The De Valence Trust has been pursuing a variety of opportunities for grants, however, Tenby Town Council unexpectedly put a cap of £5,000 on their future financial support. This was despite six years of more realistic funding from the council," he said.

"As a result of this capping decision, other funders are unwilling to support the De Valence Trust, therefore the Trust finds its future challenged and in the light of current financial restraints has no alternative but to appoint an insolvency practitioner to wind up the organisation.

"The Trust wholeheartedly thanks all those who have supported events over the last six years and all the wonderful staff and volunteers who have given their time and energy to support the De Valence and arts in Tenby," added Mr. Neal.

The Trust who intend to service events at the venue to the end of May, including the Mayor's Ball tonight (Friday), have confirmed that their full-time director Victoria Smathers, along with part-time staff will all be leaving.

Tenby Town Council, who are said to be honouring all hires of the venue beyond May, but not events programmed by the Trust, will over the next few months consider its options as to the future of the pavilion.

"Although we have not officially been informed of the situation, having been involved with the De Valence Trust as its main public body funder for the last seven years, Tenby Town Council is naturally saddened that the Trust's board feels it necessary to take this course of action," commented town clerk, Mr. Andrew Davies.

"The Town Council has supported the idea of the Trust since it was set up and we feel sorry for the board members who have worked so hard over the years to now find themselves having to make such a difficult decision.

"It is no secret that councillors have, in recent years, felt that perhaps the Trust was not making best use of the large amount of funding they have received from the ratepayers of Tenby.

"However, we do not feel this is the time to apportion blame and are therefore disappointed that the Trust feels that our decision to cap grant aid has been one of the factors that has led them to this decision. Over the intervening years, we have contributed over £250,000 in grant aid to support the work of the Trust, in addition to nearly £80,000 rent of office space," he explained.

When the Trust was set up initially, the Town Council was only going to assist with grant support for the first three years, to assist the Trust in sourcing additional grant aid for the refurbishment of the pavilion.

However, when it was realised that this was unachievable within the original timescale, the council's backing was extended for a further three years.

In November of last year, as the Trust were still progressing plans for refurbishment, members of the council agreed to continue their commitment to financially support the Trust to the tune of £35,000 for this financial year and were also set to continue their financial backing in the long term.

However, in the current financial climate, Mr. Davies said that with the thoughts of public sector cutbacks never far from the minds of councillors, they felt that it was prudent to establish a policy for the awarding of local grants that would ensure a fairer apportioning of ratepayers' money.

"Members agreed to set a limit on individual grants of £5,000 per project based on the practices of other similarly sized councils," he said.

"The council did not, however, set a limit on the number of projects an individual organisation could submit for grant aid during the year. Each would be considered on its own merits.

"While it is true that this limit could have affected the Trust's funding in future years, their grant of £35,000 was secure until 2011," he continued, adding that the Town Council were also fully prepared to consider making the Trust an exception to policy based on the outcome of a meeting planned for October where both parties would review the Trust's financial position, as councillors were fully aware as to how the reduction in other public sector funding and audience attendance figures could have impacted on the viability of the project in the future.

"It was felt that this would have given the Trust sufficient time to ascertain as to whether they would be able to secure funding from other sources to offset any potential loss in Town Council aid," added Mr. Davies.

The Town Council will now take the pavilion back under public control under a short term basis and look at how it can honour those private hires already agreed by the Trust.