The state government has ordered the cancellation of One Movement Festival in Perth and has initiated a review on the structure of the annual event.

Organizers of the event, Eventscorp has confirmed the postponement of the event, according to Perthnow.com.au.

“One Movement is part of a longer term strategy for Tourism WA to foster international events that are anchored in, and owned, by the State,” One Movement, Executive Director, David van Ooran was quoted as saying explaining the nature of the annual festival by MusicFeeds.Com.Au.

He added, “It provides diversity to WA’s events calendar and creates community vibrancy.”

Van Ooran then explained why it was decided to withdraw this year’s festival.

“[However], what has become clear after two years is that, despite modifications being made in the second year, the Festival component of One Movement held on The Esplanade isn’t working,” the Executive Director said, according to MusicFeeds.Com.Au.

He emphasized that the festival has not raking in as much income as expected.

“The music industry Conference, Fringe and Showcase elements are achieving positives outcomes, but the Festival is incurring losses for the event organizers that cannot be sustained,” van Ooran explained, said the music website.

“The Directors of One Movement Pty Ltd projected the event would run at a loss in the first few years as it was being established, but not of the scale that has occurred,” he said.

The Eventscorp Executive Director also expressed hopes that a restructured festival will be scheduled in 2012. He added that the government is already conducting a parliamentary inquiry and the involvement of the WA Tourism Commission in the annual event.

The government Music.Feeds.Com.Au. is conducting its inquiry to shed light on claims that the failure of One Movement Festival, which is funded by the tax-payers, results from ‘poor attendance’.