MOVES to establish an arts-focussed business unit at Wellington City Council could destabilise Capital E.

The council’s Strategy and Policy Committee on Thursday will consider the establishment of the unit, which would take over the management of Capital E from the Wellington Museums Trust.

This would involve removing $1.3 million in funding from the Wellington Museums Trust – the proportion of council funding that the WMT allocates towards Capital E.

John Gilberthorpe, Chief Executive of the Wellington Museums Trust, is concerned the council will not have access to donations, grants and discounts from organisations, which WMT is eligible to apply for.

"There is a significant risk to the $800,000 of generated income that Capital E achieves. This comes from numerous sources including cultural grants, sponsorship, donations, admissions, education contracts and community discounted rates for the hire of theatres for the Capital E National Theatre for Children," Gilberthorpe says.

His concern is echoed by Capital E director Stuart Grant.

"I think the success of the framework is being a part of a charitable trust," Grant says. "It appears there will be a negative impact on funding sourcing (if the proposal is implemented)."

Council officers suggest the proposed business unit would create synergies between Capital E and the Arts Centre, and other council arts activites such as grants.

"The word ‘children’ has been omitted from the report and replaced with ‘young people’. We are children-focussed whereas the arts centre is business and career focuses. There is no crossover that we can see," Grant says.

Similarly Gilberthorpe does not see a link with delivering creative opportunities and programmes to children from two year old and upwards and an incubator for emerging artists and creative people.

We cannot see the link between managing the Public Art fund and the Arts Grants and a children’s facility that is actually delivering programmes and events, Gilberthorpe says.

Chairman of the Strategy and Policy Committee Robert Armstrong was not available for comment.