1 the Hon. Michael Mccormack MP Minister for Small Business PO Box

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1 the Hon. Michael Mccormack MP Minister for Small Business PO Box 20 December 2017 The Hon. Michael McCormack MP Minister for Small Business PO Box 6022 House of Representatives Parliament House Canberra ACT 2600 Dear Minister, AMPAG pre-Budget submission on priorities for the 2018–19 Federal Budget The Australian Major Performing Arts Group (AMPAG) is the umbrella group for Australia's major performing arts companies (MPAs) who inspire millions through theatre, circus, contemporary dance, classical ballet, classical music, opera, musicals and comedy. While we recognise the Government’s positive response to the recommendation in AMPAG’s 2017–18 pre-Budget submission (to direct funds previously administered under the Catalyst fund back to the Australia Council for the Arts), there is more that needs to be done. With the support of government, we must strengthen equity of access, artistic vibrancy and ambition, and include the arts in building better economic, health and wellbeing and education outcomes. We continue to urge the government take a long-term view of the sector and of the employment generated by the performing arts. We also encourage the government to actively acknowledge the positive impact engagement with the performing arts has on individuals and their potential to advance social and economic policies in other portfolios. Investment in the arts is well leveraged. The return on investment offers both direct and indirect benefits. It has the potential to increase wellbeing, social engagement, physical activity, connectedness and vibrancy in our communities. It can stimulate the development of higher order thinking, creative ambition and insight and generates greater employment, innovation and risk-taking. Arts engagement in education leads to stronger learning outcomes and equips students with the soft skills needed in the fast-changing digital economy. The arts also contribute to tourism and positive international perceptions of our country and its people. 1 www.ampag.com.au In summary AMPAG calls for: • STEAM (science, technology, engineering, arts, maths) not STEM—The arts to be incorporated into the national digital economic strategy and the innovation strategies in education and health Cost: n/a • an ongoing commitment to strengthen the MPA framework Cost: no additional cost • an end to the erosion of the real value of arts funding caused by inflation and efficiency dividends Cost: estimated $2 million per year for four years • new investment in the arts: o to enable risk and fuel ambition through the creation of a seed fund to support new works of scale and innovation o to uplift investment in the Playing Australia fund to deliver greater regional access and opportunity o to increase funds to better leverage Australia’s international cultural touring and engagement activities Cost: $8.25 million per year for four years • stimulate philanthropy through the introduction of a tax mechanism modelled on the UK Gift Aid tax measure Cost: negligible (set up) AMPAG also recognises the importance of Aboriginal and Torres Strait Islander arts and culture and the importance of ensuring its ongoing vibrancy and relevance to First Nations and all Australians. We acknowledge first nations artists and support the ongoing work, with government support, to build on the rich culture that they carry forward. 2 www.ampag.com.au We thank you for this opportunity to outline our priories for the 2018–19 Federal Budget. Details and a full list of recommendations are in the AMPAG submission that follows. We recommend these government interventions for the benefit of the Australian people, recognising the arts have an important role to play in inspiring its citizens and lifting their social and economic prosperity. Yours sincerely John Irving Bethwyn Serow Chair Executive Director 3 www.ampag.com.au AMPAG PRE-BUDGET SUBMISSION ON PRIORITIES FOR THE 2018–19 FEDERAL BUDGET Executive summary The Australian Major Performing Arts Group (AMPAG) is the umbrella group for Australia's major performing arts companies (MPAs) who inspire millions through theatre, circus, contemporary dance, classical ballet, classical music, opera, musicals and comedy. We support our members’ leadership roles within their specific art forms and in the advancement of the performing arts sector and the public good that the performing arts deliver to individuals and communities across Australia. As a nation, we boast some of the best artists, arts companies and arts administrators in the world. The arts have a place in the lives of 98 per cent of Australians.1 They celebrate and inspire greater insight and understanding of who we are, what we value and the nature of our existence. However, government funding in real terms is sliding backwards—and in this submission AMPAG urges the Australian Government to restore a level of funding that will do justice to Australian innovation, ingenuity and creativity. With the support of government, we must strengthen equity of access, artistic vibrancy and ambition, and include the arts in building better economic, health and wellbeing and education outcomes. We continue to urge the government take a long-term view of the sector and of the employment generated by the performing arts. We also encourage the government to actively acknowledge the positive impact engagement with the performing arts has on individuals and their potential to advance social and economic policies in other portfolios. Investment in the arts is well leveraged. The return on investment offers both direct and indirect benefits. It has the potential to increase wellbeing, social engagement, physical activity, connectedness and vibrancy in our communities. It can stimulate the development of higher order thinking, creative ambition and insight and generates greater employment, innovation and risk-taking. Arts engagement in education leads to stronger learning outcomes and equips students with the soft skills needed in the fast-changing digital economy. The arts also contribute to tourism and positive international perceptions of our country and its people. 1 Australia Council for the Arts 2017, Connecting Australians: Results of the National Arts Participation Survey. Australia Council for the Arts, Sydney. http://www.australiacouncil.gov.au/ research/connecting-Australians/ 4 www.ampag.com.au In summary AMPAG calls for: • STEAM (science, technology, engineering, arts, maths) not STEM—The arts to be incorporated into the national digital economic strategy and the innovation strategies in education and health • an ongoing commitment to strengthen the MPA framework • an end to the erosion of the real value of arts funding caused by inflation and efficiency dividends • new investment in the arts: o to enable risk and fuel ambition through the creation of a seed fund to support new works of scale and innovation o to uplift investment in the Playing Australia fund to deliver greater regional access and opportunity o to increase funds to better leverage Australia’s international cultural touring and engagement activities • stimulate philanthropy through the introduction of a tax mechanism modelled on the UK Gift Aid tax measure 5 www.ampag.com.au 1. National federal policy National policy on innovation, the digital economy and education are failing to incorporate the arts to maximise positive policy outcomes. Core challenges, such as falling school engagement and academic achievement, community resilience, declining social optimism, workforce adaptability and innovation, public health and wellbeing will not be addressed adequately by scientific or digital technical skills and policy in isolation. The arts have a positive contribution to make, but it needs to be facilitated through the government’s policy framework and resources. Recommendation 1 AMPAG calls for the Australian Government to resource the expansion of the STEM agenda to a STEAM (science, technology, engineering, arts, maths) approach in the formation of its digital strategy, to generate better outcomes for its citizens and to strengthen school education outcomes. Government's approach to digital economic development 2 Australia has slipped a further four places in the Global Innovation Index to 23rd position in 2017. Australia is ranked 34th for knowledge and technology outputs, but in the critical area of knowledge diffusion it ranks 96.3 There is a disconnect. A STEAM (science, technology, engineering, arts, maths) approach to the National Digital Economic Strategy has the potential to combine skills with more significant effect, driving a culture and mindset that supports lifelong learning, exploring and interpreting the social challenges and changes brought to us through digital evolution. An economic framework that structures out the value of humanities, creativity, and the soft skills that are developed through the arts, is a deficit model. The arts can help us respond to a fast-changing economic and social landscape by inspiring innovation, new practices and services, and modes of social engagement. In addition, jobs needing creative and social intelligence, not just in the creative industries but across all industries, are less likely to be replaced by computerisation 2 Future of Jobs World Economic Forum 3 https://www.globalinnovationindex.org/ 6 www.ampag.com.au (see table above). Future teams tackling innovation challenges need to draw on a diversity of skills that are effectively forged within the arts and humanities.4 There is a growing body of research confirming the importance of creativity and innovation in the future workplace (The Heart of
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