One of the State's most successful theatres, the Gate, was facing an uncertain future last night with the Arts Council refusing to increase its annual grant beyond £531,600.
Its director, Mr Michael Colgan, has warned that the theatre may have to close because of the council's refusal to change its decision.
In documents released to The Irish Times under the Freedom of Information Act, Mr Colgan describes this as inadequate to keep the theatre open. In a letter of May 25th, he states: "My own feeling is that closure is now inevitable."
The council indicates in the documents that it wants to reduce the amount of money available to the Gate because the theatre has made profits from productions and overseas touring.
Mr Colgan, who was not available for comment yesterday, reveals in the documents his belief that a £700,000 grant for 2001 is necessary to keep the Gate open.
Reacting to the council's decision not to increase its offer, Mr Colgan in a letter to the council on May 21st says it is a sorry day for the Gate that the council "should have been so determined to undervalue its true worth and put the theatre in a more precarious situation than it has faced for over 40 years".
A statement from the Arts Council yesterday said the Gate was being offered only £531,600 for 2001. It added that discussions would begin on a new form of "multi-annual funding" with the theatre for future years.
One of the most critical documents from the council was prepared for a meeting of its grant committee in early May.
This describes the Gate's work last year as "solid" but "neither adventurous nor ground-breaking".
It also questions governance of the Gate, including the advisability of Mr Colgan sitting on the board while also acting as chief executive.