PORTFOLIO COMMITTEE NO. 1 – PREMIER AND FINANCE Friday 30 August 2019 Examination of proposed expenditure for the portfolio areas SPECIAL MINISTER OF STATE, PUBLIC SERVICE AND EMPLOYEE RELATIONS, ABORIGINAL AFFAIRS, AND THE ARTS UNCORRECTED The Committee met at 9:30 MEMBERS The Hon. Tara Moriarty (Chair) The Hon. Niall Blair The Hon. Robert Borsak (Deputy Chair) Ms Cate Faehrmann The Hon. Ben Franklin The Hon. Trevor Khan The Hon. Taylor Martin The Hon. Adam Searle The Hon. Walt Secord Mr David Shoebridge PRESENT The Hon. Don Harwin, Special Minister of State, Minister for the Public Service and Employee Relations, Aboriginal Affairs, and the Arts CORRECTIONS TO TRANSCRIPT OF COMMITTEE PROCEEDINGS Corrections should be marked on a photocopy of the proof and forwarded to: Budget Estimates secretariat Room 812 Parliament House Macquarie Street SYDNEY NSW 2000 Friday, 30 August 2019 Legislative Council Page 1 The CHAIR: Welcome to the public hearing of the inquiry into budget estimates 2019-20. Before I commence, I would like to acknowledge the Gadigal people who are traditional custodians of this land. I would also like to pay respect to the elders, past and present, of the Eora nation and extend that respect to other Aboriginals present. I welcome Minister Don Harwin and all of the accompanying officials to the hearing today. Today this committee will be examining the proposed expenditure for the portfolios of Special Minister of State, Public Service and Employee Relations, Aboriginal Affairs, and the Arts. I remind everybody that the proceeds are webcast via the Parliament's website. In accordance with the broadcasting guidelines, while members of the media may film or record Committee members and witnesses, people in the public gallery should not be the primary focus of any filming or photography. I also remind media representatives that they must take responsibility for what they publish about the Committee's proceedings. The guidelines for the broadcast of proceedings are available from the secretariat. All witnesses in budget estimates have the right to procedural fairness according to the procedural fairness resolution adopted by the House in 2018. There may be some questions that a witness could answer only if they had more time or with certain documents to hand. In those circumstances, witnesses are advised that they can take a question on notice and provide an answer within 21 days. Any messages from advisers or members' staff seating in the public gallery should be delivered through the Committee secretariat, but I remind the Minister and officers accompanying him that he is free to pass notes and refer directly to advisers seated at the table behind him. This is an appropriate time to remind everyone to switch mobile phones to silent. Transcripts of this hearing will be available on the web from tomorrow morning. Before we get started, I advise witnesses that Government members will not be asking questions during the morning session of the hearing. For that reason we have shortened the session by a third. So the first session will conclude at 11.30, give or take 10 minutes, because we have had to change seating arrangements. I advise witnesses that we are not splitting the portfolios. So all witnesses will be seated at the table and examined concurrently. PORTFOLIO COMMITTEE NO. 1 – PREMIER AND FINANCE UNCORRECTED Friday, 30 August 2019 Legislative Council Page 2 LISA HAVILAH, Chief Executive Officer, Museum of Applied Arts and Sciences, affirmed and examined KATE FOY, Deputy Secretary, Community and Engagement, Department of Premier and Cabinet, affirmed and examined TIM REARDON, Secretary, Department of Premier and Cabinet, sworn and examined EMMA HOGAN, Public Service Commissioner, affirmed and examined JASON ARDLER, Head, Aboriginal Affairs, Department of Premier and Cabinet, affirmed and examined LOUISE HERRON, Chief Executive Officer, Sydney Opera House, affirmed and examined MAUD PAGE, Acting Director, Art Gallery of New South Wales, affirmed and examined PAULINE MCKENZIE, Executive Director, Heritage, Community and Engagement, Department of Premier and Cabinet, affirmed and examined The CHAIR: I declare the proposed expenditure for the portfolios of Special Minister of State, Public Service and Employee Relations, Aboriginal Affairs, and the Arts open for examination. There are no opening statements so we will open now for questions from the Opposition. The Hon. WALT SECORD: Minister Harwin, I want to take you to some questions about the Regional Cultural Fund. Can you give me a description of the types of projects that are funded in the Regional Cultural Fund? The Hon. DON HARWIN: A very wide range of projects, Mr Secord, and a very wide range of art forms, as well. The art forms are as wide as circus, dance, visual arts, performing arts, screen, keeping places, museums, heritage, public art, libraries and youth arts. The funds are for infrastructure and redevelopment projects, ranging from major new and performing arts spaces—broadly defined—through to refurbishment of libraries, theatres and museums and, of course, small grassroots community projects. There was also funding for digitisation and facilities that support those venues. The Hon. WALT SECORD: How is funding of those projects determined? The Hon. DON HARWIN: The key thing that needs to be borne in mind is that the regional cultural fund was established as a regional growth fund under the portfolio of the Deputy Premier. Actually the allocation was to him. On an ongoing basis, now staff from Create NSW assist with the administration of that program and the expenditure of the money. They were involved in convening an assessment panel to advise me and the Deputy Premier on the allocation of those grants. The Hon. WALT SECORD: So you would announce projects as well as the Deputy Premier? The Hon. DON HARWIN: Correct. The Hon. WALT SECORD: Would you accept all of the recommendations of the assessment panel, or do you take them as an advisory and then make your decision? The Hon. DON HARWIN: As I was saying, it is different to the arts and culture development program, which is the key funding program, for which I am exclusively responsible as the Minister for the arts and which is allocated to the arts Minister. In this case, as I mentioned, the Regional Cultural Fund was established as a regional growth fund. The other thing that needs to be borne in mind is that after the assessment panel made its decision I would write to the Deputy Premier saying, "These are the recommendations of the assessment panel," and then we would jointly discuss them. It is important that I bring to your attention two other matters that are relevant. First of all, a key principle for both the Deputy Premier and me was to ensure that as far as was possible, based on the applications, every region in the State felt that it was getting its fair share. That is quite important. There is one other thing that it is important for me to stress. Obviously I am not going to be in a position to assist you with this but the Deputy Premier, consistent with the approach he took with all the regional growth funds, thought it was important to consult with local members about what they saw the principal priorities were in towns. The final list that emerged was always after a discussion between the Deputy Premier and me based on the principle that every region got its fair share and on consultations that the Deputy Premier made with local members. I think that it was quite appropriate that we approach it in that way. PORTFOLIO COMMITTEE NO. 1 – PREMIER AND FINANCE UNCORRECTED Friday, 30 August 2019 Legislative Council Page 3 The Hon. WALT SECORD: Who was on the assessment panel? The Hon. DON HARWIN: I am sure I was told who was on the assessment panel but, generally speaking, my approach is not to ask who was on the assessment panels. I am happy to take the question on notice if you actually want to know. The Hon. WALT SECORD: Yes, I do. The Hon. DON HARWIN: If you allow me to pause for a minute, I might have some more information here. The way that the assessment panels were done was not always the way that the Arts portfolio would always do it. There were more people on that panel who were not just from an arts background, consistent with the approach taken on other regional grant funds. The Hon. WALT SECORD: Minister, I will accept that you will take the names of the assessment panel on notice. How much is in the fund? The Hon. DON HARWIN: My advice is that the fund has been fully allocated but not yet fully spent. The purpose of the fund was to have it spent over a four-year period although we have now permitted, due to the fact that some of the projects are quite complex, that money to be spent over a five-year period. But it is fully allocated following the first two rounds. The Hon. WALT SECORD: Can I take you to one particular funding project? The Hon. DON HARWIN: Certainly. The Hon. WALT SECORD: Retford Park. The Hon. DON HARWIN: The Southern Highlands regional art gallery? The Hon. WALT SECORD: Yes, the Southern Highlands Regional Gallery. It used to be a property that was owned by the Fairfax family? The Hon. DON HARWIN: It was owned by James Oswald Fairfax AC, who was the last family chair of John Fairfax prior to Warwick Fairfax's takeover bid. The Hon. WALT SECORD: And it was gifted to the National Trust? The Hon. DON HARWIN: Yes, indeed it was. The Hon. WALT SECORD: Is it correct that you announced funding towards the development of it into a regional gallery? The Hon.