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A steel safety rail on the balustrade was installed last year in response to concerns about the potential for falls.
But since then, Dunedin City Council infrastructure and networks acting general manager Leanne Mash said more concerns had been raised, about its industrial look and the way it obstructed the view of those seated in the front row of the circle.
Some patrons were incensed by the barrier, contacting the ODT's Paul Gorman to describe it as ''a monstrosity'', ''monumentally crass'', and ''a clumsy addition''.
So the council has decided to make it ''a temporary feature'', which could be put in place for certain events, such as rock concerts.
After investigating a range of options, it was decided, in consultation with the venue managers, to take ''a risk-based approach'', she said.
''People are more likely to be on their feet dancing at a rock concert, raising the risk of someone falling from the dress circle, so the steel rail would be in place for those types of events.
''For events where people typically remain seated, there will be no rail.''
Ms Mash said a risk assessment would be conducted before each event to decide whether the rail was needed.
Installation and removal took about five hours.
The council was also installing a permanent inverted U-shaped barrier in front of the balustrade at the bottom of each set of stairs leading to the front row of the dress circle, she said.
''We are also adding signs by the doors to the dress circle, asking patrons to be careful when moving to their seats.
''Further signs, fitted to the balustrade, will ask people in the front row to remain seated and not to place items on the ledge of the balustrade.
''Town hall staff will also be taking a more active role by asking patrons to stay seated during performances.''
Also, a rail of 25mm steel tubing would be permanently installed in the gods, due to the greater risk associated with that area, Ms Mash said.
''Our intent is that this approach will better manage the risks of various sorts of performances, while not detracting from the overall town hall experience.''
A council spokeswoman was not aware of anyone falling over the balustrade.