Galway 2020 set aside cash for defamation case

The company, set up to deliver the European Capital of Culture – which has registered as a charity – has advised that its possible liability for the claim was €1,500.

The accounts for the operating company Galway Cultural Development and Activity Company, which have just been published, give details of its ‘contingent liabilities’, which is a liability that may occur depending on the outcome of an uncertain future event.

It said: “The company’s solicitors estimates €1,500 for a defamation claim, but proceedings have not yet issued.”

Galway 2020 spent €7.38m last year, up by about €4 million on 2018. It said €6.4 million of this was for “charitable activities”.

Its wage bill was €1.5 million last year, and its employee headcount at December 31 was 41.

It spent €750,000 on promotional activities and a further €340,000 on communications. Governance costs amounted to €170,000.

It spent €65,000 on legal fees; €42,000 on consultancy; €50,000 on monitoring and evaluation; and €21,000 on Board expenses.

Galway 2020 spent just over €447,000 on ‘raising funds’, almost the same amount that it raised in ‘sponsorship income’ (€477,000).

Its income from the Department of Culture in 2019 was €5.1 million; a third of the €15m in total central government has pledged.

In his introduction to the accounts, Chairperson of the Board, Arthur Lappin, said Galway 2020 “is likely the single largest and most complex cultural undertaking ever in Ireland”.

“Like events of similar scale internationally, the necessary preparatory work in the years prior to the event itself, requires very substantial investment in order to be ready to deliver the programme.

“This includes investments in cultural organisations and individual artists as well as the associated investment in promotional strategies for the Galway 2020 programme.

“This promotional investment has rightly featured Galway as a unique tourist destination for visitors to Galway in 2020 and was a significant factor in Galway being recognised with prestigious international awards during the year,” Mr Lappin said.

He said the organisation’s activities “directly supports approximately 350 artists and 300 businesses within the local and domestic economy”.

Mr Lappin added that the impact of coronavirus on Galway 2020, including widespread cancellation of events, would be reflected in its 2020 accounts, which will be published next October.