The Ministry’s information report on support measures for organizers of cultural events hit by the Covid-19 crisis states that limits and conditions for event organizers have changed tenfold since the start of the Covid-19 pandemic, including a total ban twice. significantly changed the previously planned financial flow of the event organizers.
Referring to the Latvian Council of Event Organizers and Producers, MC explains that in the industry, depending on the type of event, between 80% and 95% of event ticket revenues are used to cover direct expenses for the event, so the ministry
It is planned that compensation will be paid to the event organizer for canceled events during the state of emergency announced by the Council of Ministers from November 9 to December 6 and in subsequent periods for which the government has decided to ban public events.
The agreement states that compensation will be paid to all public event organizers who canceled events and refunded viewers, regardless of the founder and legal status of the event organizer. The Ministry of Culture also explained that the organizer of the event will be able to apply for compensation to the State Cultural Capital Fund (SCCF), which will manage this support.
In order to receive support, the canceled event organizer will have to provide viewers with transaction documents confirming the refund – a report issued by the ticket distributor to the event organizer on the cancellation of the ticket, taking into account the cost of the ticket return fee or the organizer’s bank direct debit. indicating the name of the event, date and number of tickets in the payment.
In addition, banking transaction fees for reviews will be taken into account if ticket sales are made without the use of a ticketing network.
It is expected that the SCCF Council will draw up a regulation on ticket compensation by 22 December which will state that the conformity assessment of the documents submitted by the event organizers will be provided by an external audit service. Compensation payments to event organizers could start in January 2021.
The Ministry of Culture said that, after identifying the information provided by the ticket distribution network on tickets purchased in their systems for cultural events between 9 November and 6 December, the amount needed to reimburse the cost of tickets and support administrative costs is approximately EUR 1,083,481. The support will be granted in 2021. Through the redistribution of funds from 2021. Financing of the “Latvian schoolbag” program, taking into account the funds saved this year.
In line with the CFR, given that the planned aid qualifies as aid to enterprises, it must be subject to the relevant rules on aid to enterprises. Taking into account the objective of the measure, the provisions of the European Commission (EC) Communication “Temporary State Aid Framework to Support the Economy in the Current Covid-19 Outbreak”, which provides for enterprise subsidies of up to EUR 800,000 per enterprise, can be applied.
The agreement also notes that the aid measure can only be implemented after the provisions have been notified to the EC and a positive decision has been obtained.