THE discovery of surplus cash means The Haymarket theatre in Basingstoke should never have changed hands, a former boss claims.

Nigel Pierce made his comments as the theatre prepares for its grand reopening on Tuesday, after a £325,000 refurbishment.

Members of the ousted Basingstoke Theatre Trust (BTT) have been told that a pot of more than £20,000 has been discovered in last year's accounts and that a £38,000 VAT refund is also expected.

The figures were revealed at a closed session of the trust's board of directors. The discovery has prompted Mr Pierce - the board's chairman - to hit out at council bosses who pulled the plug on funding after criticism of how the theatre was run.

Mr Pierce said the accounts showed the trust had been successfully tackling the long-running deficits. And he was especially critical of the borough's Cabinet member for sport and leisure, Councillor Keith Chapman.

He said: "Not only has the town lost culturally and had its diversity eroded, but money has been poured down the drain."

He added of the changes at the theatre: "I seem to recall Keith Chapman saying some derogatory things about the board and management of the theatre. Well let's just see where the finger points now when looking for poor management and an appalling waste of public funds."

Mr Pierce claims that the decision to close the Wote Street theatre in January, and hand it over to the Anvil Arts organisation, was "reactionary and visionless".

He also claims that had the BTT not had to give up the lease of the theatre, it would have been in a very healthy financial position for 2007/08.

He said the trust has plans to use surplus cash to set up a bursary scheme for youngsters wishing to pursue careers in the theatre and performing arts.

But Cllr Chapman, who was opening the theatre's revamped box office and foyer, said he thought the BTT revelations were insignificant.

He said: "It's just sour grapes as far as I'm concerned.

"It's time to move on. The management at the theatre was seriously flawed and there wasn't a proper programme and that's why things had to change."

The closure and management changeover was the outcome of a process that started in February last year, after Arts Council England, South East, announced it was axing a £262,656 grant for the theatre for 2007-08, despite a well-supported Save Our Haymarket campaign, spearheaded by The Gazette.

The Conservative Cabinet backed changes after receiving a report from an independent consultant.

Cllr Chapman believes that the money the borough council and Arts Council were ploughing into the theatre was simply being used to pay off debts.

"It should have been used to ensure a good programme of work and to make the theatre attractive to all age groups," he said.

Cllr Chapman added: "The new opening of The Haymarket is a good thing for theatre-goers in Basingstoke, in Hampshire and across the region."