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1 Oct 2002

new mardi gras for sydney

The world's largest gay festival has been rescued after Mardi Gras creditors voted to cut their losses, based on community interests instead of commercial interests.

Four Sydney organisations will take over the Sydney Gay and Lesbian Mardi Gras in a last-minute deal that saved the world's largest gay event.

Co-chairs of New Mardi Gras Stevie Clayton and Michael Woodhouse (right).
Calling itself New Mardi Gras, the new coalition comprising the AIDS Council of NSW (ACON), the Sydney Pride Centre, the Gay and Lesbian Rights Lobby and Queer Screen will pay A$349,000 for the debt-ridden event's key assets which should keep the world's biggest gay party alive and in gay hands. The new entity's board would comprise two representatives from the four community organisations.

Mardi Gras was placed in receivership earlier this year after posting losses of more than $275,000 (US). Last month, the company assigned to wind up the company announced it was putting all of Mardi Gras' assets up for sale.

The creditors voted overwhelmingly in favour of the deal on Monday except the Tax Office which is the largest creditor.

"The vote by creditors was based very much on community interests instead of commercial interests ... which is an unusual situation for an administrator," said administrator Scott Pascoe of Sims Lockwood.

Mr Pascoe declined to reveal what return creditors would receive, but insiders say that the return would be virtually nothing once the administrator's fee and Mardi Gras staff entitlements were paid out.

As of Monday, a loan of A$50,000 from ACON, intended as cash flow for New Mardi Gras has already gone ahead. ACON president Adrian Lovney assured the community that the money was not government funding but was from the organisation's diverse range of fund-raising activities.

The funds raised from the sale of some of the more controversial floats that have starred in Mardi Gras parades over the past 25 years to the New Mardi Gras, an auction of the remaining costumes, floats, props and other equipment owned by the original company, together with profits from this weekend's Sleaze Ball, would go to creditors.

A fundraiser would be held to make the first payment of A$150,000 by the end of October this year.

"Business and individual members of the community ... can help with fund-raising," New Mardi Gras co-chair Michael Woodhouse said.

He said a successful fundraiser will help ensure the 2003 season, including a fair day, festival, parade and party would go ahead. The new organisation will now depend on volunteers, with the old organisation shedding 19 full-time jobs in recent months.

The 25-year-old Mardi Gras attracts more than 120,000 visitors to Sydney each year and has been estimated to give a A$100 million boost to the NSW economy each year.

Australia » New South Wales » Sydney

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