Those are the views of regeneration chiefs who believe the Victorian venue does have a part to play in 21st Century Blackpool, but only providing it is made sustainable.

And that should include major investment from its owners, Blackpool's council leader said today.

Yesterday, The Gazette revealed parts of the iconic Winter Gardens could be under threat after a leaked report condemned it as having "little purpose in the modern world".

In the second part of our exclusive reports into the future of this entertainment legend, the full financial burden of the complex is unveiled.

Over the past five years, owners Leisure Parcs have lost almost £1m - a total only mitigated by the success of the Empress Ballroom.

When it is taken out of the equation, the losses add up to £2.7m casting doubt over the future some elements including the Opera House, the Pavilion Theatre and the Spanish Hall.

The figures - a combination of both actual losses and those projected for 2008/09 - show a sales slump at the Opera House from £816,000 in 2004/05 to an expected £376,000 in 2008/09.

But the "escalating" costs of building maintenance work and keeping on top of health, safety and disability legislation are both factors in the losses - £1.07m at the Opera House; £684,000 in event rooms such as The Spanish Hall and £969,000 in the public areas like the foyer and arcades.

Doug Garrett, chief executive of Blackpool's regeneration company ReBlackpool, said: "We need to find a sensible commercial use for the Winter Gardens because it is an expensive building to maintain.

"It is iconic in terms of Blackpool, and yes it does need to be retained. We need to keep all that's good about it but we need to look at commercial uses and that means some parts may need to change.

"The work being carried out in St John's precinct (including pedestrianised performance areas] will add value to the Winter Gardens and create a real sense of place but we can't lean on the private sector to do things at any cost.

"The Houndshill is across the road and clearly there is a link into retail or hotel space. The Empress Ballroom would be a fantastic space for any hotel to have as part of its offer."

The council has decided not to extend an annual £1m subsidy to Leisure Parcs to secure the use of the Winter Gardens as a conference venue, but will subsidise individual events instead.

A Leisure Parcs' spokeswoman said: "The Conservation Statement was a confidential document commissioned by Leisure Parcs in June 2008 (produced by conservation experts Brock Carmichael, Liverpool).

"This document was a precursor to the production of a detailed Conservation Management Plan which is currently being produced in consultation with English Heritage and we will shortly be engaging with Blackpool Council, ReBlackpool and other interested parties."

For the full story pick up a copy of Thursday's Gazette.

Comment: Why the Winter Gardens must be saved.
>> Winter Gardens face uncertain future