One of Ireland’s longest- running film festivals has requested a €200,000 loan from a local authority to save it from financial collapse writes Eoin English.

The emergency request from the board of the Cork Film Festival will be discussed today by members of Cork City Council’s arts committee.

It is expected that board members will address the meeting before the committee issues a recommendation which will be put to a vote at a special behind-closed-doors meeting of the city’s 31 councillors next Monday.

The festival’s grave financial situation was outlined in a report to councillors which reveals that council officials have been in negotiations with the festival board since January in relation to the financial difficulties.

In his report, the council’s assistant chief executive, Pat Ledwidge, said the festival, which has an annual economic benefit estimated to be worth over €2.5m to the city, is at “an immediate risk of going into receivership”.

“The festival board has requested the city council to assist the organisation with a loan to deal with these difficulties, which have come about due to a combination of factors,” he said.

Councillors were told the restructuring of the festival in 2013 demanded a more ambitious programme, especially in the run-up to its 60th anniversary last year.

Mr Ledwidge said the board successfully developed an event that is once again seen as a strong international brand for the city. However, he said it lost its headline sponsorship and because of the recession, had little success in securing private financial sponsorship.

Despite the difficulties, he said last year’s 60th anniversary festival was a success, with an increased profile thanks to a new media partnership with RTÉ.

The report said a number of targets were exceeded, including increased audience figures of 22,200, earned box office figures of some €145,000, almost 1,000 school children engaged with the festival, and it had sold-out Irish premiere and marquee events at Cork Opera House.

However he said the board also had to deal with several financial commitments arising from the restructuring, which cost more than they could sustain effectively.

“The festival leverages direct annual funding of approximately €200,000 — with the Arts Council being its main funder — which will be lost to the city if the festival were to close,” the report said. “Such a scenario would result in significant reputational damage to the city, and indeed to the country.”

A strategic plan has now been prepared which provides for a reduction in the festival’s costs, a reduced number of showings, and strong financial control.

Because of the pressing financial crisis, an interest-free €200,000 loan from the council, repayable over eight-years at €25,000 per annum, has been proposed.

This article first appeared in the Irish Examiner