But there is a dispute over how savage the funding cut to the Carnival in City program has been.

Producer of the international music and dance program Frank Madrid said he is appalled at the decision by organisers of the National Multicultural Festival to slash his operating budget by three quarters, from $20,000 to $5000.

But late yesterday Multicultural Affairs Minister Joy Burch said funding of $15,000 was available for community groups, local and interstate bands, dancers and singers, as well as a DJ and an MC.

Mr Madrid said he was informed on Wednesday the three-day event would have only $5000 for artist fees.

''What can you realistically do with $5000? Local act Mi Tierra charges $3000 for a 90-minute show. Last year we had 10 acts, many charging 50 per cent of their regular fees just to be a part of it, but this is infeasible.'' Mr Madrid said he was shocked by the decision as negotiations had been progressing smoothly.

''In April I spoke to Nic Manikis and shared my views on a new approach to programming of the Multicultural, one based on quality and excellence that would turn the festival around and attract sponsors willing to be a part of a real celebration of diversity, getting the festival out of the financial mess of 2009,'' Mr Madrid said.

Late yesterday Ms Burch said $15,000 in funding would bring a high-quality event.

''This figure has been reached following discussions with key performers from last year's Carnival, and I am confident that the Carnival this February will be better than ever.''

For more, pick up a copy of today's Canberra Times