Federal Budget 07-08: Please sir, can I have some subsidy?
Arts Hub takes a squiz at the nuts and bolts of the 2007-08 Federal arts Budget. We'll bring you more budget coverage as we make it around to the sector for deeper commentary. And we're keen to know your thoughts, as always! Do you like what you see? Will this Budget salvage the small to medium arts sector? Room for nitpicking? Let us know!
Budget Highlights
Major Performing Arts Companies
Australia’s major performing arts companies appear to be a winner, with a promised funding increase of 35 per cent. This equals $24.1 million in new funding to 20 of our most popular companies, across the next four years. Funding will be provided to the companies as an increase to their 2008 base grant allocations.
The companies getting the cash are: Bell Shakespeare Company, Black Swan Theatre Company, Circus Oz, Company B, Melbourne Theatre Company, Malthouse Theatre Company, Queensland Theatre Company, State Theatre Company of SA, Sydney Theatre Company, Australian Brandenburg Orchestra, Australian Chamber Orchestra, Musica Viva Australia, Opera Queensland, State Opera of SA, West Australian Opera, The Australian Ballet, Bangarra Dance Theatre, Queensland Ballet, Sydney Dance Company and West Australian Ballet. (That's eight theatre companies, five dance companies, three orchestras, three opera companies and one circus).
Funding does not include the State symphony orchestras, Orchestra Victoria or Opera Australia.
The government claims the funding "will resolve the financial issues" facing top performing arts companies (including the SDC, whose monetary woes were viewed as a contributing factor to the departure of Artistic Director Graeme Murphy and Associate Janet Vernon).
The Budget statement tells us that "increased base funding will ensure that the major performing arts companies are able to: maintain and present high quality artistic programmes; strengthen business practices and capacity to attract non-government streams of income, enhancing their self-sufficiency; improve skills development opportunities for creative and performing artists; improve access through education, touring and community programmes; and showcase Australia’s best performing arts in overseas markets."
“This is a great day for the performing arts of Australia," Federal Arts Minister Senator Brandis proclaimed (with appropriate theatricality).
"Today’s announcement represents the highest level of funding for the sector ever provided by the Australian Government, and ensures that Australia’s major performing arts companies will continue to operate at an international standard.
“The increased funding will ensure the sustainability of major performing arts companies like the Bell Shakespeare Company, Musica Viva Australia and The Queensland Ballet. It will ultimately reinforce the reputation enjoyed by our major performing arts companies for producing the highest quality performing arts.”
The Federal government is seeking funding reciprocation from State governments (to existing, agreed ratios), and points out that assuming they comply, $24.1 million becomes $36 million.
The government says their funding represents "an average increase of 35 per cent on 2006 Australian Government funding for the 20 companies ($16.96m)." The next review of performing arts funding is scheduled for 2009-10.
Dance (well, The Australian Ballet School anyway)
The Australian Ballet School (responsible for 95% of The Australian Ballet talent) will get $4.6 million over the next financial year to renovate its facilities and plan for "future expansion."
The funds include: $2.9 million to "reconfigure" facilities in the Australian Ballet Centre, Southbank, Melbourne; $1.7 million in new funding "to scope an expanded training programme including a full-time training curriculum, investigation of site options, and undertaking preliminary design for new training facilities and residential accommodation"; and $1.1 million for its training programme (the same as last financial year).
“To maintain its high standing, the Australian Ballet School must continue to attract the most talented students from around the country and provide them with training, facilities and support of an international standard," said Senator Brandis.
“The refurbishment of existing facilities and planning for future expansion will prepare the Ballet School to provide full-time training and student accommodation equal to the world’s leading ballet schools."
Small to Medium Performing Arts
The small to medium performing arts sector, which many would argue is the heart of Australia's artistic life and output, is set to receive a 60 per cent funding increase through the auspices of the Australia Council.
Government statements indicate the funding - a boost of $19.5 million over four years - will be provided to approximately 60 small to medium performing arts companies (that's one percent per company!)
“Australia’s small-to-medium performing arts companies create much of our new artwork and activity, and the increased funding will ensure the ongoing sustainability of this burgeoning sector,” said Senator Brandis.
“This funding will further strengthen the sector and ensure that there is a variety of new and entertaining works and performances available for Australians to enjoy across the country for many years to come.”
A number of investigations in recent years showed that while small to medium organisations are managing their resources more effectively and increasing their income, their costs have also increased markedly.
Mr Brandis said the funding should "underpin a significant increase in new work and community activities, including skills development and training for artists and in community education and access programmes." The point about new work was stressed, with the Senator citing Australia Council research that indicates new Australian productions have fallen "by almost 20 per cent between 2002 and 2005".
This additional funding is to be included as an indexed and ongoing increase of $4.8 million per annum to the base funding of the Australia Council.
Ausdance was one of the first to formally applaud the cash for this sector, with National Director Julie Dyson firing off a statement almost immediately (it arrived in our in-box at 10:13pm last night).
"Ausdance has long campaigned for a better deal for smaller companies and independent artists, noting their contribution to Australia’s economy, its cultural life and international profile," said Dyson.
"In October last year Ausdance co-ordinated a grassroots campaign, with almost 3,000 people signing Petitions to both Houses of Parliament seeking greater investment in the dance sector.
"This is therefore a very welcome injection of new funds that will enable dance companies to reach their potential through increased productivity, and assist them to meet international demand for their work. It will also provide more certainty in dancers’ employment, at the same time assisting further development of new audiences for dance.
"Ausdance looks forward to working with both sides of politics in the lead-up to the Federal election. We want to ensure that the dance profession continues to have certainty through ongoing investment, enabling the sector to grow creatively and productively into the future."
Visual Arts & Crafts
Australian visual arts and crafts artists and organisations will receive a total of $24.7 million over the next four years via the government’s Visual Arts and Craft Strategy (VACS) - that's an increase of $5.2 million over its initial allocation of $19.5 million in 2003.
Senator George Brandis called it "essential funding".
The VACS provides support for new work, public exhibition programmes, Indigenous visual arts centres, visual arts events and publications, and the touring of contemporary art exhibitions across Australia. it was introduced in December 2003, when Cultural Ministers agreed to a package of measures to respond to the recommendations made by Rupert Myer’s 2002 Contemporary Visual Arts and Craft Inquiry.
Overall, the first four years of the Strategy resulted in a 10 per cent increase in exhibitions, 20 increase in catalogues, 23 per cent increase in organisations’ earned income, 41 per cent increase in gallery visitor numbers, 48 per cent increase in partnerships, 98 per cent increase in public programmes and 125 per cent increase in sponsorship. Last night's announcement see VACS through until 2010-11.
Film & TV (aka. one is better than three)
The Budget included the formal announcement of a move sure to ignite some controversy in the sector.
The Australian Film Commission (AFC), Film Finance Corporation (FFC) and Film Australia Ltd (FAL) will be merged into a new screen agency named the Australian Screen Authority (ASA) from 1 July 2008.
The Review of Australian Government Film Funding Support found that the national film agencies had operated effectively and efficiently to date, but said that a combined agency would be able to take more coordinated and strategic decisions on funding, especially with the establishment of a new Australian Screen Production Incentive - the other major screen news from last night's Budget.
The package provides two major incentives: a new Producer Rebate, which will replace the 10BA and 10B schemes, provide a 40 per cent tax rebate of eligible Australian expenditure to producers of qualifying feature films and 20 per cent for qualifying television productions; and a Location Rebate, which will replace the Refundable Film Offset and is intended to attract large-budget offshore productions.
The Location Rebate has been increased from 12.5 per cent to 15 per cent, and will give an additional 15 per cent rebate on all expenditure on post-production, digital and visual effects undertaken in Australia for projects valued over $5 million. Both the Producer and the Location Rebates are to take effect from 1 July 2007.
Senator Brandis said the Producer Rebate represents a major new support mechanism for film producers, and would help the industry to be more competitive and responsive to audiences.
“It provides a real opportunity for producers to retain substantial equity in their productions and build stable and sustainable production companies, and should therefore increase private investor interest in the industry,” he said. “The Rebate will allow the ASA to focus on areas of need, including strengthening the development phase of projects, as well as capacity building and public access programs."
“It was very clear from the recent Film Review findings that earlier world-leading tax reforms by this government have been picked up and copied by other international competitors,” added Communications Minister, Senator Helen Coonan.
“To maintain and grow our hard-won film reputation, an innovative package of film support is needed. I want to recognise the outstanding contribution Senator Rod Kemp made to this package through his comprehensive Film Review.”
The Producer Rebate will be administered by the FFC until the ASA is established. The research and statistics function currently undertaken by the AFC will be transferred to the Australian Film, Television and Radio School (AFTRS), along with the associated funding.
Funding for the individual agencies will be maintained in 2007-08, but funding for the ASA from 2008-09 and beyond will become progressively dependent on the Producer Rebate, which will become the primary source of funding for projects with commercial potential.
ASA funding will go primarily to projects of national cultural significance which would be unlikely to attract the necessary private finance to proceed on the basis of the rebate alone, such as documentaries, children’s programs, indigenous content and new producers’ work.
The Screen Producers Association of Australia (SPAA) described the Budget roadmap for screen "an important step forward for the sector".
"The lack of private investment is limiting the growth of this vibrant industry," said Executive Director of SPAA, Geoff Brown.
“Theoretically the new approach should put producers in the box seat when it comes to raising private investment for film and television productions. They can lever investment off the back of the substantial equity that the rebate delivers to them and manoeuvre to take best advantage of IP ownership.
"The raising of the Offshore Offset to 15% inline with our international competitors is a positive response to current market conditions. We are particularly pleased with the new initiative of a 15% rebate for local post-production, digital work and visual effects over $5 million on offshore films.
“However SPAA is concerned that without 10BA co-investments the rebate may only deliver marginal gains to the producer. All the upside from the rebate will be traded off to attract investors who will not be able to get the traditional tax break on 10BA. They will be asking for much more. It’s likely that the high net worth individual (the conventional 10BA investor) will depart the scene to be replaced by equity investors expecting a capital guarantee on their investment and returns of 15% plus regardless of the film’s performance."
Brown said the SPAA was also concerned about the Treasurer’s announcement of the ASA merger.
"We understand that the new rebate cannot be used along side the FFC/(new ASA), however we are apprehensive the new agency is not used to par back the historical role of direct investment in those films which are difficult to fund internationally.
“We said all along that we weren’t opposed to a restructuring of the federal film agencies if the objective was a new super agency that incorporated all the functions necessary to make the industry competitive in the global audiovisual economy. Key to this was the creation of a Marketing and Trade Division within the new authority that marketed Australia with a single brand. What we need is a comprehensive approach to the issue; not a simple fix. SPAA is hopeful that there will be an opportunity to raise our concerns over the next 12 months.”
Community and national digital radio broadcasting
The Budget earmarked $10.5 million in funding for community and national digital radio broadcasting, primarily to assist in establishing digital radio infrastructure for community broadcasters (such as facilities for improved recording, playback, streamed text, sound and news and weather updates).
Funding will also be handed out to national broadcasters ABC and SBS, with the exact amount of money each will receive to be determined via a competitive tender process. This is to support their existing analogue radio services as well as new digital services such as ABC DIG radio and DIG jazz, and to make available some of SBS’s existing digital radio services that are currently only provided online.
The funding is to allow the national and community broadcasters to participate with commercial radio operators in the shared broadcasting infrastructure (“multiplex”) required for the operation of digital radio. Broadcasters will begin offering digital radio services in the state capital cities on 1 January 2009.
The Community Broadcasting Foundation will distribute funding to community broadcasting stations in Adelaide, Brisbane, Hobart, Melbourne, Perth and Sydney to help them implement digital radio broadcasting by 1 January 2009. The government also proposes to establish up to 57 “in-fill” translators across the six state capitals for the ABC and SBS.
The funding follows up on a 2004 election promise to develop a policy framework and implementation strategy for digital radio in Australia. The policy framework released in October 2005 proposed that digital radio services be introduced in the capital cities by 1 January 2009.
Funding for community broadcasters will be reviewed in 2010, while funding for the national broadcasters is ongoing (their transmission contracts will last for 15 years).
“Radio is the only mainstream broadcast service that is analogue only and faces increasing competition from new digital platforms such as the Internet and mobile phones,” said Senator Coonan. “Examples of digital radio implementation overseas indicate that the technology works most effectively as a supplement to existing radio services, rather than a replacement technology.”
Internet radio businesses and organisations, not to mention those who produce online radio format creative content (such as podcasts downloadable on demand), might take issue with the Senators potentially divisive assertion that radio is in competition with the Internet.
Indigenous Cultural Property programme
Indigenous heritage, explicitly, Indigenous ancestral remains and sacred objects have made recent headlines, thanks to an ongoing dispute between Aboriginal communities in Tasmania and British cultural authorities over the return of remains.
The Budget provides $4.7 million over four years to sustain Australia's Indigenous Cultural Property programme, whose look after these sorts of issues.
“The Australian Government recognises that the return of cultural property to its traditional custodians is extremely important to Indigenous communities. This funding will ensure the continuation of this vital programme which has so far seen the return of more than 1,475 remains and 603 secret sacred objects,” said Senator Brandis.
The Return of Indigenous Cultural Property programme funds the repatriation of Australian Indigenous ancestral remains and secret sacred objects held in the collections of the eight major Australian museums in partnership with State and Territory governments (National Museum of Australia
Australian Museum, Queensland Museum, Western Australian Museum, Museum Victoria, South Australian Museum, Museum and Art Gallery of the Northern Territory, and the Tasmanian Museum and Art Gallery).
Funding will also be dedicated to creating a framework for the return of non-Australian Indigenous remains held in Australian collections to their countries of origin.
“While we have made considerable progress in returning ancestral remains and secret sacred objects to Indigenous communities, it is estimated that the eight major museums participating in the current programme collectively hold more than 7,070 ancestral remains and more than 11,448 secret sacred objects,” Senator Brandis said.
National Portrait Gallery
We know John Howard likes a good portrait. Whenever he finally retires, he'll no doubt have a ball at our new National Portrait Gallery. Currently under construction in Canberra’s Parliamentary precinct the gallery received $21.2 million in new funds under last night's Budget, to "develop new services, enhance its exhibition and education programmes for visitors and assist with the cost of commissioning its new premises."
“Through portraiture, the National Portrait Gallery builds awareness among both Australians and overseas visitors of the people who have contributed to the richness and variety of Australian life, in the past and the present,” said Senator Brandis said.
"[It] will be one of the great public buildings of Australia. The Gallery has long been a major drawcard for tourists and school groups, but it is not always practical for individuals or groups to make the trip to Canberra. This funding will enable the Gallery to reach a wider audience throughout Australia through annual touring exhibitions to rural and regional parts of Australia, as well as the capital cities. The additional funding will also provide for a vibrant virtual Gallery on the Internet."
All up, the gallery is receiving $90 million in Australian Government funding. It is due to open in December 2008, and is expected to feature a permanent display of 500 portraits, along with temporary gallery spaces in which to mount exhibitions of portraits from around the world, dedicated education areas and storage areas.
Museum (of sport)
The Budget provides a further $10 million for 'Stage Two' of our new National Sports Museum at the Melbourne Cricket Ground (MCG). Passionate words from Senator Brandis: “The MCG is Australia’s spiritual home of sport, and the National Sports Museum will be a fitting and dynamic tribute to Australia’s sporting heritage and will become a major attraction to both locals and visitors."
The museum will feature memorabilia and a series of high-tech interactive installations that are heavily focused on the "experience" of sport. They include: a simulator to replicate the "feeling and emotion felt by sports people when performing their craft"; a multi-media optical display that lets visitors feel the "living" presence of sports players; and a 180 degree theatre for viewing sport.
Other notable hits and misses: the Australian War Memorial was promised $12.5 million; and the Australian National Academy of Music missed out on the $6 odd million it was hoping for.
For further details, and a breakdown of peak body and institution finances for the period, CLICK HERE.
