Chapter 1
Introduction and background
Referral and conduct of the inquiry
1.1
On 16 June 2015 the Senate referred the following matter to the Senate
Legal and Constitutional Affairs References Committee (the committee) for
inquiry and report by 15 September 2015:
- the impact of the 2014 and 2015 Commonwealth Budget
decisions on the Arts; and
- the suitability and appropriateness of the
establishment of a National Programme for Excellence in the Arts, to be
administered by the Ministry for the Arts, with particular reference to:
- the effect on funding arrangements for:
- small to medium arts
organisations,
- individual artists,
- young and emerging artists,
- the Australia Council,
- private sector funding of
the arts, and
- state and territory
programs of support to the arts,
- protection of freedom of artistic expression and
prevention of political influence,
- access to a diversity of quality arts and cultural
experiences,
- the funding criteria and implementation processes to
be applied to the program,
- implications of any duplication of administration and
resourcing, and
- any related matter.[1]
1.2
In August 2015 the Senate twice agreed to extend the reporting date for
the inquiry, initially to 14 October 2015,[2]
and then to 26 November 2015.[3]
On
10 November 2015 the Senate agreed to further extend the reporting date to 2 December 2015.[4]
1.3
In accordance with usual practice the committee advertised the inquiry
in The Australian newspaper on 8 July 2015, and on the committee's
website. The committee also wrote to various organisations and individuals
inviting written submissions by 17 July 2015. The committee received 2719 submissions. A list of submissions
received is at Appendix 1.
1.4
The committee held ten public hearings between August and November 2015,
in Melbourne, Perth, Hobart, Brisbane, Adelaide, Cairns, Darwin, Sydney and
Canberra. A list of the witnesses who appeared at the public hearings is at Appendix 2. A list of additional information and responses to questions on
notice received by the committee during and after the public hearings is at
Appendix 3.
1.5
The committee thanks all those who contributed to the inquiry by making
submissions, appearing as witnesses at the public hearings, and providing
additional information and answers to questions taken on notice.
Structure of the report
1.6
The committee's report is in five chapters. Following this introductory
chapter:
-
chapter 2 examines the response of submitters and witnesses to
the key changes to arts funding arrangements made in the 2014 and 2015 Budgets,
principally the cuts to the Australia Council and Screen Australia, and the
creation of the National Program for Excellence in the Arts (NPEA) and the Book
Council of Australia;
-
chapter 3 discusses evidence received by the committee about the
impact of the arts funding changes on the arts sector itself and on the broader
community, including the concept of the arts 'ecosystem' as well as the
particular impact on regional and remote communities, indigenous and
multicultural Australians, and people with disability;
-
chapter 4 contains a brief discussion of the revision of arts
funding arrangements which was announced by the government on
20 November 2015, shortly before the conclusion of the inquiry; and
-
chapter 5 sets out the committee's conclusions and
recommendations.
A note on references
1.7
References to the committee Hansard in this report may be to the proof
Hansard. Page numbers may vary between the proof and the official Hansard
transcripts.
Background
Arts governance and the Australia
Council
1.8
At the commencement of this inquiry, responsibility for arts and culture
in the Commonwealth government fell within the portfolio of the
Attorney-General and Minister for the Arts, Senator the Hon George Brandis QC.
The Ministry for the Arts (the ministry) sat within the Attorney-General's
Department.
1.9
As part of changes to cabinet and administrative arrangements in
September 2015, responsibility for the arts portfolio was moved to the new
Minister for Communications and the Arts, Senator the Hon Mitch Fifield. The
ministry now falls under the Department of Communications and the Arts.
1.10
The Australian government has provided financial support to the
development of the arts since 1908. Throughout the 20th century, a
number of organisations played a role in distributing federal funding,
including the Australia Elizabethan Theatre Trust and the Arts Council of
Australia.[5]
In 1973, the Australia Council for the Arts was established on an interim basis,
then replaced in 1975 with an independent statutory authority, generally known
as the Australia Council.[6]
the Australian Government’s arts funding and advisory bodythe Australian
Government’s arts funding and advisory body.
1.11
The Australia
Council describes itself as 'the Australian Government’s arts funding and
advisory body', whose purpose is to 'champion and invest in Australian arts...by
supporting excellence across all art forms and leveraging our investment in the
arts to support and build a vibrant arts ecology'.[7]
1.12
The Australia Council is overseen by its Board, with a Chief Executive
Officer (CEO) responsible to the Board for the day-to day administration of the
Council.[8]
The Council is accountable to the Australian Parliament and to the government
through the Minister for the Arts.[9]
The CEO liaises with the minister and the ministry, in conjunction with the
Chair of the Board, in relation to the government's arts policies and the
Council's statutory functions and operations.[10]
1.13
Some Commonwealth arts programs are managed directly by the ministry,
while funding for others is determined and distributed by the Australia
Council. The Australia Council also administers certain arts programs on behalf
of the ministry.
The 2012 review of the Australia
Council
1.14
In 2011-2012, the Australia Council was subjected to an independent review,
commissioned by the then government as part of its development of a National Cultural
Policy. The report of the review was released in May 2012.[11]
1.15
The report made 18 recommendations across six key areas for major reform
of the Australia Council, including a recalibration of its purpose, and
significant revision of its governance structure and peer review process, as
well as identifying a number of issues for future action. The review recommended
an increase in funding to the Australia Council of $21.25 million per annum, to
enable the Council to fulfil its revised purpose and functions.
1.16
The then government accepted most of the recommendations of the review,
and its response included the introduction of a bill for a new Australia
Council Act 2013, which was passed by the parliament and commenced on 1
July 2013.[12]
The government also committed to increase funding to the Australia Council by
$75.4 million over four years, commencing from 2013-14.[13]
The 2014 Budget
1.17
Following the election of the coalition government in September 2013,
the 2014-15 Budget measure Arts programmes – reduced funding
applied savings of $87.1 million over four years by reducing funding to the
ministry, Screen Australia and the Australia Council.
1.18
The Australia Council's funding was reduced by $9.6 million in 2014-15,
and approximately $6 million per year for the three following years. The
government stated that the savings achieved would be redirected 'to repair the
Budget and fund policy priorities'.[14]
1.19
Funding to Screen Australia was reduced by $38 million over four years.
This included the termination of the Australian Interactive Games Fund, a
$20 million initiative which at that point had $10 million and one year of
operation remaining.[15]
2014 MYEFO: Book Council of
Australia
1.20
In its December 2014 Mid-year Economic and Fiscal Outlook (MYEFO) the
government announced a further $6 million reduction in funds to the Australia
Council over three years, to fund the establishment of a new Book Council of
Australia.[16]
The 2015 Budget
1.21
The 2015 Budget contained significant further changes to arrangements
for arts funding. These comprised additional efficiency measures imposed on
each of the ministry (then part of the Attorney-General's Department), the
Australia Council, and Screen Australia, as well as the redirection of more
funds from the Australia Council into the ministry and Creative Partnerships
Australia, for new and re-housed initiatives.
Efficiencies
1.22
The efficiency measures imposed on arts agencies in the 2015 Budget are set
out in Figure 1.
|
Arts and Cultural
Programmes—efficiencies
|
|
Expense ($m)
|
2015-16
|
2016-17
|
2017-18
|
2018-19
|
|
Attorney-General's
Department
|
-0.7
|
-0.5
|
-0.5
|
-0.5
|
|
Screen Australia
|
-0.9
|
-0.9
|
-0.9
|
-0.9
|
|
Australia Council
|
-1.8
|
-1.8
|
-1.8
|
-1.8
|
|
Total Expense
|
-3.4
|
-3.3
|
-3.3
|
-3.3
|
Figure 1: 2015-16 Budget efficiency measures, arts portfolio[17]
Further redirection of funds from the Australia Council
1.23
In addition to the efficiency measures described above, a further $110
million over the four-year forward estimates was redirected from the Australia
Council to provide for:
-
the establishment of the National Programme for Excellence in the
Arts (NPEA), to be managed by the Ministry for the Arts;
-
the transfer to the ministry of three programs previously managed
by the Australia Council (Visions Australia, Festivals Australia and the Major
Festivals Initiatve); and
-
a $5.3 million redirection of funds to Creative Partnerships
Australia's (CPA) matched funding program.[18]
Resulting changes to the Australia
Council's programs and activities
1.24
In its submission the Australia Council described the cumulative impact
of the 2014 and 2015 decisions as representing a total reduction in its
appropriation of approximately $34.2 million including indexation, or $41
million excluding indexation, for the 2015-16 financial year.[19]
The impact of the changes by 2015-16 was demonstrated in the diagram at Figure
2, submitted by the Council.
Figure 2: adjustments in Australia Council funding, 2013-14 to
2015-16[20]
1.25
Over the period of 2012-13 to 2015-16 the Australia Council had four
main categories of expenditure: 'Support for Major Performing Arts companies';
'Government Initiatives'; 'Operating and Program Delivery Expenses'; and
'Remaining Funds'. In its submission the Council outlined the impact of the budget
changes on each area of its work.
Support for major performing arts
companies
1.26
Since 2001, the Australia Council, in partnership with state
governments, has supported major performing arts companies via the National
Framework for Governments' Support of the Major Performing Arts Sector (the MPA
Framework):
Under the [MPA Framework], the Australia Council administers
annual core funding to 28 MPA companies on behalf of the Australian Government
and state governments, at levels they set and agree to. The MPA companies
receive funding to develop and present excellent artistic works and foster a
vibrant and sustainable performing arts sector. Funding agreements with the MPA
companies emphasise the importance of artistic vibrancy and engaging with
diverse audiences. In addition to core grants, a small allocation of funding
supports the sector through strategic initiatives, company reviews and artistic
development.[21]
1.27
In a press release detailing the Attorney-General's portfolio budget
measures 2015–16 the Attorney-General stated that 'there will be no reduction
in the Australia Council's funding to the 28 major performing arts companies as
a result of this initiative'.[22]
The forecast Australia Council expenditure on the Major Performing Arts program
in 2015-16 was $107.7 million.[23]
Government initiatives
1.28
The Australia Council administers a number of 'government initiatives'
on behalf of the ministry. The 2015-16 Budget measures anticipated that three government
initiatives would continue to be administered by the Australia Council, and three
programs would be transferred from the Council to the ministry.
1.29
The Australia Council would continue to administer the Visual Art and
Craft Strategy and Sound Australia, and would retain control over some of the
National Regional Programs, with other programs under this category moving back
to the ministry. The Australia Council would continue to administer the Playing
Australia- Regional Performing Arts Touring Fund, the Contemporary Music
Touring Program, and the Contemporary Touring Initiative.[24]
1.30
Two programs under the National Regional Programs, Festivals Australia
and Visions Australia, would now be administered by the ministry. The Major
Festivals Initiative would also be transferred to the ministry.[25]
1.31
The Australia Council advised that following the 2015-16 Budget measures,
five other government initiatives had been discontinued or would cease:
-
ArtStart which provided small start-up grants for
services, resources, skills development and equipment to help graduates build
an
income-generated career in the art form they studied. The 2015-16 Budget
applied a 50% reduction to ArtStart which, combined with a significant
overall reduction in the Council’s 2015-16 appropriation, impacted on the
viability of ArtStart. The Australia Council announced that it would
cease to offer the ArtStart program during 2015-16. Early career artists
would remain eligible to apply for funding from the Council's general grants
program.
-
Creative Community Partnerships Initiative (CCPI)
provided funding for innovative, large-scale, multi-year projects delivered
through partnerships between arts and non-arts organisations (such as local
councils, universities, not-for-profit organisations and corporations) to
increase access to arts and cultural activities in Australian communities.
Partners contributed at least 50% of the budget for projects. Following the
2015-16 Budget, the Australia Council announced that the CCPI would not be
accepting applications in the 2015-16 financial year or beyond. Applicants
would be eligible to apply for funding for this type of activity through the
general grants program.
-
The Artists in Residence program placed
professional artists in residence in schools to enhance the education of
students through arts engagement projects. The Australia Council's Memoranda of
Understanding (MoUs) with state and territory arts agencies and education
departments for the delivery of Artists in Residence will expire on 31 December
2015. The 2015-16 Budget applied a reduction to Artists in Residence, and the
Australia Council announced that it would cease to deliver the program after
2015.
-
The Australian Fellowships, New Work and Presentation
program supported the creation and presentation of new Australian work across
all art forms (previously referred to as 'Creative Australia Artist Grants').
This five year program was scheduled for completion during 2015-16. The limited
remaining funds under this program would be repurposed for allocation through
the Australia Council’s core grants programs in 2015-16.
-
Get Reading! involved a national marketing campaign
that focused on raising public awareness about the value of reading in the
community, and a national author touring program. The cessation of funding for Get
Reading! was announced in the 2014-15 Federal Budget.[26]
'Remaining funds', including the
general grants program and core funding for organisations
1.32
The 'remaining funds' category includes the Australia Council's general
grants program; multi-year core funding for organisations; national and
international development; capacity building; and the 'Research, Data, and
Analysis' program. The forecast expenditure on remaining funds for 2015-16 was
$40.8 million.[27]
1.33
The Australia Council grants program 'supports individual artists,
groups of artists and arts organisations through a peer-assessed, streamlined
and accessible grants model'.[28]
In January 2015, the Australia Council commenced a new grants model.[29]
As a result of the 2015-16 Budget announcements, the Australia Council
announced further changes to that grants model.[30]
Figure 3 sets out how the changes would operate.
1.34
The Australia Council also changed the arrangements for multi-year core
funding to organisations. Previously, in line with its 2014 Strategic Plan, the
Council had announced a program of six-year operational funding for
organisations. Applications for funding under the six-year program were due in
June 2015, with funding for successful applicants to commence in 2016.
Following the 2015 Budget, that program and the application process then
underway were cancelled. The Australia Council advised that:
The Six-Year Funding for Organisations program will be
replaced with a Four-Year funding model. Organisations will only need to submit
one application by 1 December 2015 deadline. Decisions will be announced in
April 2016, with funding to commence in January 2017.[31]
1.35
The Australia Council advised that as a result of a decrease in funds
the national and international development; capacity building; and the
research, data, and analysis programs were all under review.[32]
1.36
Figure 4, provided by the Australia Council, set out the changes in
annual expenditure in each of its areas of work, from the 2012-13 to 2015-16
financial years.
Figure 3: changes to the Australia Council's general grants
scheme[33]
|
2014-15 Actual activities
|
2015-16 Planned activities
|
2015-16 Revised activities –
transition year
|
|
Arts Projects for Individuals
and Groups
(grants for up to three years
ranging from $10,000 - $50,000 each)
March 2015 round completed and
the June 2015 round cancelled following the
2015-16 Budget announcement
|
Arts Projects for Individuals
and Groups
(grants for up to three years
ranging from $10,000 - $50,000 each)
Four rounds per year
|
Arts Projects for Individuals
and Groups
(grants for up to three years
ranging from $10,000 - $50,000 each)
Two rounds in 2015-16
|
|
Arts Projects for Organisations
(grants for up to three years
ranging from $10,000 - $150,000 each)
March 2015 round completed and
the June 2015 round cancelled following the
2015-16 Budget announcement
|
Arts Projects for Organisations
(grants for up to three years
ranging from $10,000 - $150,000 each)
Four rounds per year
|
Arts Projects for Organisations
(grants for up to two years
ranging from $10,000 - $100,000 each)
Two rounds in 2015-16
|
|
Development Grants for
Individuals and Groups (grants for up to two years ranging from
$5,000 - $25,000 each)
March 2015 round completed and
the June 2015 round cancelled following the
2015-16 Budget announcement
|
Development Grants for
Individuals and Groups (grants for up to two years ranging from
$5,000 - $25,000 each)
Four rounds per year
|
Development Grants for
Individuals and Groups
(grants for up to two years
ranging from $5,000 - $25,000 each)
Two rounds in 2015-16
|
|
Fellowships
(a total of 14 Fellowships
valued at $100,000 each awarded across art forms)
One round per year
|
Fellowships
(a total of 12 Fellowships
valued at $100,000 each awarded across art forms)
One round per year
|
Fellowships
(a total of 8 Fellowships
valued at $80,000 each awarded across art forms)
One round per year
|
Figure 4:
Australia Council annual
expenditure 2012-13 to 2015-16 ($'000s)[34]
<img width="841" height="571" id="Picture 2" src="~/media/Committees/legcon_ctte/Arts_Funding/c01_2.gif" alt="Figure 4:
Australia Council annual
expenditure 2012-13 to 2015-16 ($'000s)">
The National Program for Excellence
in the Arts (NPEA)
1.37
In announcing the establishment of the NPEA in the 2015 Budget, the
Attorney-General and Minister for the Arts stated that it would:
...support endowments, international touring and strategic
projects, with an emphasis on attracting private sector support...allow for a
truly national approach to arts funding and will deliver on a number of
Government priorities including national access to high quality arts and
cultural experiences...[and] make funding available to a wider range of arts
companies and arts practitioners, while at the same time respecting the
preferences and tastes of Australia’s audiences.[35]
1.38
On 1 July 2015 the government released draft guidelines for the NPEA,
inviting public comment on the document by 31 July 2015.[36]
1.39
The draft guidelines envisaged that the NPEA would offer funding for
three streams of activity:
-
endowment incentives: for medium- to long-term
projects required to be co-supported in cash or kind by sources other than the
government;
-
international and cultural diplomacy: for arts and
cultural organisations to conduct international tours, exhibitions,
partnerships and exchanges; or to bring internationally significant art and
artists to Australia; and
-
strategic initiatives: to assist arts and cultural
organisations to respond to new opportunities, challenges and issues; deliver
outcomes against planned and developing priorities; and support projects for
regional and remote audiences. This stream would also be the source from which
the government would directly fund 'appropriate major initiatives'.[37]
1.40
The draft guidelines stated that the NPEA would provide approximately
$20 million each financial year, with the level of funding provided in each
stream to be 'demand driven'. There would be no limit on the amount of funding
that may be sought for a project, nor on how many applications may be made by
an organisation for different projects, but organisations may only receive one
grant per year from each funding stream. Individuals were explicitly excluded
from applying to the NPEA, and funding for certain types of projects was also
excluded, including film and television and interactive games. The NPEA would
not provide operational funding for organisations.
1.41
The draft guidelines set out certain criteria for assessment of
projects, under the headings 'quality', 'access', 'support and partnerships'
and 'value for money'.[38]
Applications would be considered by 'at least three assessors, including a
combination of Ministry for the Arts and independent assessors'. Assessment of
projects under the international stream may also include staff of the
Department of Foreign Affairs and Trade.[39]
1.42
The government received 330 submissions in response to its request for
feedback on the draft guidelines.[40]
1.43
In August 2015 the ministry called for expressions of interest for 'Independent
Assessors' to assess grant applications to the NPEA. There was no deadline for
application.[41]
The Book Council of Australia
1.44
On 11 September 2015, the (then) minister announced the appointment of
Ms Louise Adler AM as the inaugural Chair of the Book Council of Australia, and
released terms of reference for the Council.[42]
1.45
The terms of reference provided that the Book Council of Australia 'will
provide advice to the Minister of the Arts on matters relating to Australian
literature and writing', focused on promoting Australian writing nationally and
internationally, developing audiences and 'nurturing a vibrant reading and
writing culture'. While it was envisaged that the Council's advice to the
government would include 'priorities for funding through targeted initiatives',
the terms of reference did not indicate that the Council itself would
administer any funding or grants programs.[43]
Changes announced 20 November 2015
1.46
On 20 November 2015 the new Minister for the Arts,
Senator the Hon Mitch Fifield, announced that the NPEA would be replaced by a
new program called Catalyst—Australian Arts and Culture Fund (Catalyst).
Catalyst would 'complement existing mechanisms' by supporting 'innovative ideas
from arts and cultural organisations that may find it difficult to access
funding for such projects from other sources'.[44]
1.47
The minister announced that $12 million per year would be made available
in grants through Catalyst; a reduction from the $20 million per year proposed
for the NPEA. The remaining $8m per year ($32 million over the forward
estimates) would be 'repurposed' to the Australia Council, in order to provide
it with 'greater capacity to meet the needs of small and medium organisations
and...also in recognition of its role as the Commonwealth's vehicle for
supporting individual artists'.[45]
1.48
The guidelines for the Catalyst fund, issued the same day, showed that
the program broadly reflected the funding streams, criteria and assessment
arrangements of the former NPEA, but with a shift in focus to innovation rather
than 'excellence'. Like the NPEA, Catalyst would operate three funding streams:
-
partnerships and collaboration: replacing the
NPEA's 'endowment incentives', this stream would remain conditional on
applications being co-funded from other sources, but would now allow government
funding in anticipation of such support, with successful applicants having six
months after approval to leverage the other funds;
-
innovation and participation: replacing the NPEA's
'strategic initiatives' stream, with an emphasis on innovation rather than
excellence, inclusion of eligibility for arts training and education projects,
and the removal of explicit reference to 'major initiatives'; and
-
international and cultural diplomacy: similar to
the NPEA, although now open to development activities, and also flagging the
identification by the government from time to time of priority countries or
regions, in respect of which applications would be 'particularly encouraged'.[46]
1.49
Like the NPEA, Catalyst funding would operate on a rolling basis, with
four nominal funding rounds per year but no fixed deadline for applications.[47]
As with the NPEA, organisations may apply for funding of up to four years'
duration. There was no longer a limit on how many projects could be supported
per organisation, but Catalyst did introduce a $500,000 limit on each
application.[48]
1.50
The Catalyst guidelines specified that it would 'give priority to
projects involving small to medium organisations', and also introduced
provision for funding of 'unincorporated groups with primarily an arts or
cultural heritage purpose', provided they were auspiced by an incorporated
organisation. Local government arts or heritage entities were also eligible to
apply.[49]
The exclusion of individual applicants, and of applications in the fields of
film, television and interactive games, remained, as did the exclusion from
funding organisations' operational costs, beyond the administration costs of
funded projects.[50]
1.51
The criteria for assessment of applications were broadly similar to
those set out for the NPEA, comprising 'quality and innovation', 'access',
'support and partnerships' and 'value for money'. The Catalyst guidelines
indicated a shift in emphasis, however, making reference to the 'calibre'
rather than the 'reputation' of applicant organisations, to public 'benefit'
and participation rather than audience appeal, and requiring a level of
innovation.[51]
The same assessment process would apply to Catalyst as that outlined for the
NPEA.
1.52
The Catalyst program opened for applications on Friday,
27 November 2015.[52]
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