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The NSW Government is set to fund a $130 million rescue package for the Sydney Opera House.

In response to extensive lobbying, the NSW is expected to announce the funding for the iconic harbourside building in next Tuesday's state budget. NSW Treasurer Eric Roozendaal will provide the money for the Opera House in what one Government source said was enough to "fix the problem" which has threatened the Opera House with closure. These sources confirmed that more than $130 million will be allocated in the 2011/12 and 2012/13 financial years.

The rescue package comes after recent revelations that an internal engineering report that showed there were risks of "multiple fatalities" because of ageing stage machinery.

It will be far less than the $800 million the Opera House is asking from the NSW and Federal governments over seven years for a renewal project to fix the premises but will pay for the cost of replacing stage machinery and enable it to remain open.

The Opera House report from engineering firm Marshall Day Entertech warned that âthere is a real risk to persons on stage or being carried on the flying system from a malfunction or fault with this installation and a similar, although lesser, potential risk when people are carried on the transport elevator."

The report warned there was a risk of "multiple fatalities" and said the theatre's flying system was "non-compliant with current international codes and practice".

The funding comes at a time when Treasurer Eric Roozendaal is being criticised for not spending enough on other new projects in the upcoming budget.

While many in the arts community are welcoming the expected funding, some fear that other areas of arts and venue funding in NSW will suffer. Live Performance Australia have been leading a concerted campaign for expanded performance space and one or more new lyric style theatres in Sydney, and funding in these areas is unlikely to be forthcoming if $130 million is spent on the Opera House.

This will impact on the theatre community, as expressed recently to Australasian Leisure Management by Capitol Theatre General Manager Graeme Kearns. Kearns explained that, "one of the biggest challenges facing theatre in Australia is a lack of properties in Sydney.

"Larger productions need to tour Sydney and Melbourne as a minimum to be viable and without enough Sydney venues some productions will not get here."

Image courtesy of Hamilton Lund.

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