THE Haymarket theatre's board has reversed its decision not to renew the contract of artistic director Alasdair Ramsay, and has instead asked him to stay on.

The theatre's board voted last week to overturn a decision it made in November, when it told Mr Ramsay his three-year contract would not be renewed. The meeting also saw the current chairman, David Smith, resign his position.

However, Mr Ramsay, who had been set to leave the theatre at the end of March 2004, has not yet accepted the board's offer.

In a statement to The Gazette, he said he was thinking over his role at the theatre following the new decision.

He said: "I am currently considering my position and hope to be able to give an answer by January 30. I have a show to open next week."

Catherine Hopkins, the new chairman of the board of the Basingstoke Theatre Trust Limited, informed The Gazette of the board's change of heart after its meeting on Wednesday.

She said: "The board made a resolution to set aside the decision made in November not to renew the theatre director's contract, and has asked Alasdair to remain. We have told the staff and the trustees."

She added: "Alasdair is extremely busy concentrating on the opening of Therese Raquin (which opens this Friday), and has not yet informed us of his decision."

However, Ms Hopkins said she could not reveal why the board had changed its mind. It made its original decision on November 12.

Mr Ramsay, who has been in his position for six years, revealed at the theatre's AGM in December that the original decision had been a "shock" to him.

At the same meeting, David Smith, the then chairman of the board, faced a hostile night of questioning from the theatre's trustees. They were demanding to know why no replacement was being sought for Mr Ramsay.

Mr Smith announced at Wednesday's meeting he had resigned his position as chairman and board member.

He later told The Gazette that he had told the board of his intention in September. He said: "I have a young family and realised the time commitment that was required was becoming too much.

"We put in place a phased departure so that anybody who was interested in standing could do so.

"Catherine Hopkins has been on the board for some time and I'm quite sure she will take the theatre forward."

Mr Smith had been chairman for two years.

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