Melbourne Central City Studios are again the subject of scrutiny after Victoria’s Auditor-General, Des Pearson, says their trading cash flows last financial year were ”not sufficient to meet rental, loan interest and principal obligations”.
In a report to the Victorian Parliament yesterday he said, ”The studios are assessed as having a high financial viability risk due to their current-year loses, while June 30, 2010, operating cash flow forecasts are also uncertain.
”An assessment of key indicators of financial health and business forecasts for the studios indicates high financial viability risk.
”The future plans and forecasts for the studios are sensitive to the global economy and therefore uncertain.”
But a Brumby Government spokesperson attributed losses to the global financial crisis.
The State Government recently announced it will invest $770,000 into an analysis in relation to local film and television studio facilities, including the viability of building new sound stages and/or production offices at Melbourne Central City Studios.
As well as feature films, MCCS has been home to TV productions including The Pacific, Nightmares and Dreamscapes, Satisfaction and Project Runway.
Source: The Age