Hāwera community rallies to save cinemas after financial and competitive pressure

Hāwera's Cinema 2 Trust has revealed it can no longer operate sustainably under its current model. Photo / South Taranaki District Council

The future of Hāwera’s cinema complex is in doubt after struggling in recent years with operating expenses and growing competition.

In January, the Hāwera Cinema 2 Trust, which runs the South Taranaki town’s cinema operations, went public about its challenges.

Trust-authorised spokesperson Aaron Foley said the trust had struggled to recover from the likes of Covid-19, the screenwriters’ strike, increased operating costs, falling admissions and competition from digital providers.

The current model could no longer operate sustainably, Foley said.

“While this has been an incredibly difficult and disappointing situation for us and the community, we were all here to make this work as we are passionate about our community. However, as trustees, we must face the financial reality.

“As responsible trustees, we must act in the best interests of the trust, its employees and the community.”

The venue has been in operation since 1998 and has been run by the trust, on behalf of South Taranaki District Council, since 2007.

The council raised a loan of $1m to buy the cinema in March 2007.

Foley said the trust was facing potential funding constraints because it no longer had charitable status.

The council has contributed $40,000 annually for the past few years and has budgeted to support the cinema for another 12 months.

The trustees are set to resign in the coming weeks.

If six suitable expressions of interest to replace them are not received by February 12, the trust intends to undertake a winding-up process to be completed by March 31.

Councillor Andy Beccard called a public meeting on January 30 to discuss future options.

Beccard estimated more than 200 people attended.

“It was really good ... everyone is positive and they have come up with some great ideas so hopefully we can move forward,” he said.

The ideal solution was for a new group of people to take control of the cinema.

“Everyone is doing their best, nobody wants to see it close, but with some circumstances, it’s the trust’s decision to move on and let some other people take over,” he said.

South Taranaki Mayor Phil Nixon, who was at the meeting, said there was an overwhelming desire for the cinema to continue.

“The last thing I want to see is a cinema close in Hāwera because I think it’s just a brilliant asset to a town and it’s part of the fabric of the community,” Nixon said.

“It is very different now ... but there is still something very special about a big screen.”

Nixon agreed the ideal outcome was for a new set of trustees to operate the cinemas.

“I really commend the outgoing trustees, they have done a great job. They’ve done their best to look at options and they have decided the best thing now is to stand aside to allow a new set of eyes and heads over it – we look forward to a positive outcome,” he said.

The community could protect its future by “putting bums on seats”, Nixon said.

“People say it is expensive. Yes, it is expensive to go to the movies but a lot of things are expensive now.

“If we could get more bums on seats, more often, maybe the prices could come down a bit.”

Nixon did not rule out council involvement.

“Council are happy to hear any thoughts and ideas from anyone but I can’t promise what council may decide. We are coming into rates capping and it’s fairly tough for us.

“We have to be careful with it. We are absolutely happy to talk because, as council, we’re very supportive of a cinema in Hāwera moving forward.”

Expressions of interest to become a trustee should be submitted to admin@halliwells.co.nz before 4pm on February 12.

Requests for background information for prospective trustees can be made to tania@fkandco.co.nz.

Potential trustees will be evaluated by the current trust, in consultation with the council.

Fin Ocheduszko Brown is a multimedia journalist based in Whanganui.