You're right black belt - the hurdy-gurdy fest did have money from the "Festival Innovations Fund" last year and I think they got some this year too - thing is that the council can't apply to themselves through this scheme to fund the Easter Maritime Festival - If I am as reliably infornmed as I think I am, the EMF costs about 30K+ to stage and the vast majority (at least two thirds) of that comes from sponsorship.
The main reason that the EMF is so well organised and run is because the council department responsible employ skilled people to work on the festival - now I'm not saying that the gurdyfest wasn't well done last year and I'm sure it will be a success this year too but to sustain excellence on this scale over a number if years takes more than a few helpful volunteers types willing to work all the hours God sends for seven days on the trot recieving only thanks and a free ticket to some workshops in exchange.
If the EMF were to be run by anyone other than the Council it would lose one of its most important aspects - it would inevitably have to become a paying festival which would then nessecitate a total restructuring of the way the festival presents itself - there would be an end to music played for free in the pubs, an end to the free street theatre and Punch and Judy shows etc etc - in effect it would no longer the Festival that so many people know and love.