COMEDIAN Jack Dee, the excellent, award-winning comic duo Lip Service, plus Kendal Amateur Operatic Society performing Richard III, are just some of the high spots of the new and exciting Brewery season.

Yet, as New Year dawns and Sam Mason sits at his desk he could be forgiven for feeling slightly dismayed at the task ahead.

For Sam, writing and directing the Kendal arts centre's pantomime Aladdin has been a hoot, but at the moment wearing the chief executive's hat is no laughing matter.

The Brewery has a financial hole, which, come hell or high water, Sam has to plug: "I am normally an absolutely die hard optimist, but I have to say that even with my most positive head on, 2005 is going to be a hard year for the Brewery."

Sam explains that the Brewery's bar and catering trade in 2004 was hit extremely hard by the number of new bars and restaurants that opened in Kendal during the year - particularly with the arrival of Wetherspoons - leading to a deficit of nearly £100,000: "We don't expect it to improve in 2005 so we'll have to make savings of at least that amount, which will inevitably have an impact on what we can offer to the public.

"The tragedy of this situation is that all of our art forms are thriving with record audience numbers and all meeting their financial targets, but we simply cannot compete with the dilution of customers by the sheer number of bars in town.

"People may not be aware that the Brewery is dependent upon its bar and catering facilities for half of its income and every penny of profit from those areas is put directly into the arts charity that delivers the extraordinary programme of arts activity for the South Lakes."

Sam has been knocking on the doors of the Brewery's core funders for help.

South Lakeland District Council and Cumbria County Council have made it very clear there is no extra money and it is unlikely that there will be any further cash from Arts Council England North West.

And he's anxious to highlight that the Brewery now generates 90 per cent of its own income with all its key funding partners put together contributing less than 10 per cent of income. Apparently, it is a level of funding lower than any other comparable arts organisation in the country.

"The message for the future is that we are very much on our own, if we need greater income, and therefore this makes our bar and catering trade even more crucial."

The new season, he adds, will be the last with considerable diversity and challenge: "We have no choice but to try to increase the amount of revenue generated through the box office.

"Although there will be certain strands of programming protected by new sources of targeted funding, such as new writing, live literature and world roots music, there will be a definite sea change to a more commercial programme and cuts in some areas.

"We hope that this will be a short-lived change and that if we find new funding or other sources of income we can go back to our balanced, varied and diverse programme of activity as soon as possible."

So, with a fresh programme of events under way, Sam is rallying the community: "Of particular note are the Gateway Music Festival every weekend throughout March, showcasing the best of world roots music, and the week-long residency by Theatre Absolute, bringing their award-winning and hard-hitting Street Trilogy to Kendal not for the faint hearted but not to be missed.

"There is also a fabulous selection of family theatre and we hope many of the new friends we made with Aladdin this year will return to see one of these exceptional shows.

"One great piece of news is that we have been lucky enough to receive a Homefront Recall (Lottery grant) for a Forties Fortnight in May to celebrate 60 years since the end of the Second World War.

"With the best of new release and art house films, some extremely exciting visual arts exhibitions, the best youth theatre and dance provision in South Lakeland and dozens of adult education classes, the Brewery is an incredible resource for the area and at the heart of cultural life in Cumbria."

For further details of all Brewery events, contact the box office on 01539-725133.