The Shire and the cinema’s organisers have been at odds over the past two weeks over financial and administrative support.

Cinema convener Stephen Greenall released a statement that claimed the council had invented a legal excuse to hand more responsibilities to volunteers instead of the council.

“The council was trying to force us to completely separate and become incorporated,” Mr Greenall said.

“We can’t spare time for that. We’ve gathered a large petition that shows we have a lot support in community

“We copped criticism from Northern Grampians Shire Mayor Murray Emerson, but we stand by the letter that was published.”

Cr Emerson said the council would work on a new arrangement with the cinema.

“The council is in discussions to continue its support of the cinema,” he said

“Northern Grampians Shire would like to keep the cinema functioning.

“The cinema can continue to be covered by our insurance but there will need to be changes to the schedule as they are running too many screenings.

“We will also discuss the cinema’s bookkeeping arrangements, which are currently handled by the council.”

Mr Greenall said he welcomed Cr Emerson’s comments.

“This is a win as we hadn't had indication yet that they would reconsider,” he said.

“That offer is fine if the cinema can continue.”

Mr Greenall said he understood that Northern Grampians Shire, like all other councils in Victoria, was having to make changes because of the state government’s rate rise cap.

Mr Greenall said that services like the cinema or school crossing supervisors should not be cut as a response.

“The broader issue is: how far does cost cutting go and how much do we value volunteers?” he said.

“They wanted to shut the cinema. We had to act as the cinema is a vital asset.”