Stage Challenge has announced that the event will not be proceeding due to costs.

One of the biggest cultural events in the school calendar, Stage Challenge, is over.

The Stage Challenge Foundation emailed teachers and sponsors to say the annual competition could not go ahead as they couldn't afford to continue.

The dance competition started in 1992.

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The Stage Challenge Foundation also operated J Rock, which has also been cancelled.

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In a letter to participating schools, foundation chairman Lester Taylor said: "The income generated from sponsorship and ticket sales in 2018 will be insufficient to produce the events to a high standard."

PROJECT BLOOM It's the end of Stage Challenge. Pictured: Wairarapa College with their winning production about animal testing.

The organiser relied on corporate and Government sponsorship each year, as well as ticket sales and entry fees.

"Major costs of production include venue hire and the associated costs of providing staging, lighting and sound. The current economic conditions are making it difficult for the corporate sector to sponsor charitable events," he said.

Over its time, Stage Challenge said more than 500,000 students had participated with its shows. Last year, 17,000 students took part.

Murray Wilson/Stuff Other groups will receive Government funding if they can make a similar event viable, the minister says.

Education Minister Chris Hipkins​, a former Stage Challenge participant himself, said the Ministry gave $267,000 a year to keep the programme going.

"I understand dwindling corporate sponsorship and funding from other sources was the main reason behind their decision," he said.

Asked if the Government would increase funding to save the event, Hipkins​ said the ministry had agreed to maintain its funding until 2019. That funding could be offered to other groups looking to keep a dance competition going.

CHARLOTTE CURD/STUFF Stage Challenge has operated for 25 years.

"I'd love to see events like this continue," he said. "Funding is still available should the event organisers find a viable way forward or should someone else decide to set up a similar event."

Stage Challenge producer Helen Sjoquist broke the news to teachers in an email and reminded them that "names and logos are registered trade marks so cannot be used without relevant permissions".

The organisation did not respond to further questions on Tuesday morning.

Wellington College arts director Kirsty Hazledine​ said she and other arts teachers would look to start their own dance competitions.

"There's a move afoot in Whanganui for them to do something with Rangitikei and Manawatū, as there is in Auckland. We might look to do something similar as well," she said.

For an all boys school especially she said the loss of Stage Challenge would be "huge".

"We're really sorry it's happened, it's a huge thing for a school like Wellington College and sometimes it's some of the only arts and culture involvement some of the kids have," she said.

The news that there would be no Stage Challenge or J Rock in 2018 came relatively out of the blue, she said.

The Foundation made $105,541 in the year ending July 2016, it reported in its last report to Charities Services. The cost of putting on the events was $984,142 that year, about $200,000 less than it had spent the previous year.