A proposal and estimate of costs was prepared outlining the urgent need for such premises particularly in the context of the planned festival of An Tóstal (a celebration of Irish life and culture). The costs involved buying out the goodwill of the tenants of the Round Room, then used as a cinema, (£21,500) and the Pillar Room, used as a dance hall, (£21,000); and renovating the premises (£23,000). It was not proposed to disturb Longford Productions and Edwards-MacLiammoir as the Arts Council would continue to lease the Gate Theatre to them in turn for six months each. Annual rent to the Rotunda Hospital would amount to a figure of £2,000.

In August 1952, the Minister for Industry and Commerce dismissed representations made by the Arts Council recommending that Bórd Fáilte acquire these buildings, from the funds at their disposal. In September 1952, fresh representations to the Department of the Taoiseach recommended that the Arts Council acquire the buildings and hire them out for cultural activities. The Department of the Taoiseach favoured these proposals and by December 1952 decided to guarantee the principal and interest on a loan from the Irish Assurance Company Ltd to the Arts Council for an amount not exceeding £75,000.

Negotiations

The first months of 1953 were a crucial period in the negotiations:

While the Board of the Rotunda Hospital was prepared to grant a lease to the Arts Council, the lease was subject to the Arts Council first acquiring and then surrendering the interests of existing tenants. The duration of the lease was also to be limited to 31 years (the maximum period permissible under the Board’s charter).

In view of the capital expenditure contemplated, the Arts Council asked the Board of the Rotunda to apply to the Commissioners of Charitable Donations and Bequests for a lease of up to 150 years. While a favourable reply was expected, a snag arose when the Arts Council realised that the rooms over the Gate Theatre were not included in the lease. This would have created problems regarding rights and methods of access.

Negotiations with the existing tenants became difficult:

• The tenant of the Pillar Rooms was reluctant to sell his interest for the figure offered by the Council.
• The tenant of the Round Room was willing to sell the interest for the figure offered by the Council subject to the Arts Council agreeing not to use the premises as a commercial cinema and to a deposit of £2,000 payable by the 1 June, this deposit to be forfeited if the transaction was not completed.
• The question of whether the Council had any power to enter into a valid agreement with the Rotunda Hospital was also present during the negotiations. While the Council had no power to borrow money under the Arts Act, 1951, a section contained in the Act enabled the Government to confer this power by Order. The Government had executed such an Order, but it would not become operative until confirmed by resolution of each House of the Oireachtas.

Modified scheme

On the 23 April 1953, a modified scheme was submitted to the Taoiseach for approval, where it was proposed to take over the Round Room and the Gate Theatre only. The proposal included revised estimates of the cost of converting the Round Room into a properly equipped theatre and of adapting the Gate Theatre premises for use as exhibition rooms. However, based on the recommendations of the Office of Public Works architects, these costs had jumped from £23,000 to £80,000.

The Government refused to approve these latest proposals and the whole venture was subsequently abandoned.