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The Myer Foundation and Sidney Myer Fund Focuses on the Short-And-Long-Term Damage to Australia’S Culture Caused By

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The Myer Foundation and Sidney Myer Fund Focuses on the Short-And-Long-Term Damage to Australia’S Culture Caused By ACN 004 444 419 ABN 46 100 632 395 ABN 75 274 949 866 16 July 2015 Committee Secretary Senate Legal and Constitutional Affairs Committee PO Box 6100 Parliament House Canberra ACT 2600 [email protected] To the Committee Secretary, Senate Legal and Constitutional Affairs Committee, Re: Impact of the 2014 and 2015 Commonwealth Budget decisions on the Arts In May 2015 the Attorney General and Minister for the Arts Senator the Hon George Brandis QC announced that $105 million would be reallocated from the Australia Council to establish the National Program for Excellence in the Arts, a new funding program managed by the Ministry for the Arts. This submission to the Senate Inquiry from The Myer Foundation and Sidney Myer Fund focuses on the short-and-long-term damage to Australia’s culture caused by: 1. The lack of consultation with the sector regarding the nature and timing of the announcement, 2. The subsequent threat to philanthropic support for Australian cultural creation, 3. The absence of information regarding the government’s strategic imperative underpinning the reallocation of funds, and 4. The flow on effects of this announcement. The Myer Foundation and Sidney Myer Fund The Sidney Myer Fund was created in 1934 and The Myer Foundation in 1959. Together, the two philanthropic entities have distributed over $210 million (not adjusted to present day values) to Australian causes and activities. In the last four years alone, The Fund and Foundation have dispensed more than $15 million to arts-related organisations and activities. Both Fund and Foundation have made an indelible contribution to Australia. Unanticipated governmental changes to the environment in which they operate now threaten the impact and effectiveness of their future contributions. PO Box 21676, Little Lonsdale Street, Melbourne, Victoria 8011, Australia Telephone 61.3.8672-5555 Facsimile 61.3.8672-5556 Website www.myerfoundation.org.au Myer Family Commitment The Sidney and Merlyn Myer family has a longstanding commitment to integrity and ethical service, and wishes to promote creativity, innovation, tolerance, and the fulfilment of potential for all in society. 1. The Lack of Consultation with the Sector Regarding the Nature and Timing of the Announcement The recent announcements by the Ministry for the Arts have had damaging effects on many relationships within the sector; between the Minister and organisations and individuals as well as between the Australia Council and artists and organisations. Productive relationships between artists, organisations, stakeholders and government are essential and damage caused to them is not easily repaired. Trust is hard won, but regrettably, easily lost. It is fundamental that a democratically elected minister and the sector she or he represents maintain an effective working relationship based on shared desire to see the sector prosper. A strong, respected and healthy Australia depends on such relationships in all sectors. The lack of warning about the impending changes prevented the philanthropic sector, artists and organisations to prepare for the announcement’s effect on budgets and disrupted already in-train programs and services. Such behaviour does not represent best-practice in any industry or sector. Uncertainty is the enemy of advancement. 2. The Subsequent Threat to Philanthropic Support for Australian Cultural Creation Australian cultural creation, expression and distribution survives on a co-mingled funding arrangement with support derived from federal, state, territory and local government programs, philanthropy, box office and corporate support and includes great personal contribution and sacrifice from those engaged in arts and cultural practices. While some cultural activities enjoy commercial success, the economic model which underpins most does not make it possible for them to be created or presented in a profit-making framework, and so they require support from each of the entities listed above. The private sector’s support, along with philanthropy’s, is, in large measure, attracted into such co-mingled relationships by the existence of federal government support at all levels of cultural creation and presentation. Philanthropy and sponsorship cannot support this sector on its own; government support at all levels of cultural creation and presentation is necessary to give private funding the confidence to proceed. Companies that can no longer access government support are unlikely to be able to attract private or corporate support as an alternative. Any reduction in funds to arts budgets necessarily means that fewer individuals, organisations and ensembles will be able to access such funds and, in turn, private sector support. This is particularly damaging to the small-to-medium sector that cannot carry the costs of development teams responsible for private and corporate sector fundraising. 3. The Absence of Information Regarding the Government’s Strategic Imperative Underpinning the Reallocation of Funds The modest amount of funds invested in Australia’s cultural future by the Australia Council produces a disproportionate return on that investment in both cultural and fiscal terms. Any depression of that investment poses a threat to the return that it resultantly generates. In FY14, the Sidney Myer Fund supported several projects that had secured $234,000 of support from the Australia Council. The Australia Council’s contribution to those projects was more than doubled by the Sidney Myer Fund and then that contribution was leverage more than four times over in the wider community. Page 2 The Australia Council was originally established as an independent statutory authority through the Australia Council Act 1975 and exists, in part, to provide support to Australian culture via an ‘arms-length’ mechanism. Such a mechanism ensures that neither Australian cultural creators nor audiences nor the Governmental bodies distributing the support improperly benefit from that support. The ‘arm’s length’ principle (and the peer review system it fosters) helps create a competitive, decision-making framework through which support is administered, democratically, even-handedly and fair-mindedly. The removal of direct political influence is the only guaranteed method to ensure that excellence, diversity and access can be democratically, artistically, and, importantly accountably encouraged. The creation of a new funding body, administered within the Ministry for the Arts completely removes the principle of arms-length funding, increases the administrative costs associated with program’s management and undermines the accountability and diversity that any such program could attempt to support or create. The Australia Council is not perfect; not every grant made produces brilliant outcomes; however it is the best system yet invented and crippling it in this way will only damage Australian cultural practices. 4. The Flow on Effects of this Announcement The flow on effects of this announcement and the absence of information regarding the Government’s strategic imperative underpinning the reallocation of funds are already being felt across Australia. The Australia Council’s suspension of core-funding programs and of the entire June 2015 grant round was a direct result of the Minister’s announcement. The Myer Foundation’s and Sidney Myer Fund’s cultural support programs are now in a period of stasis; the confusion and uncertainty across the country has made it nearly impossible to assess applications effectively and strategically. The flow on effect of such unforeshadowed and uncompensated decisions is, in the short term, that viable, solvent and creative companies will be forced to wind up their operations. The reallocation of funding in the manner addressed by this submission creates a range of further, as-yet-unaddressed issues for the sector and the Government. The negative impact on the small-to-medium sector, the permissibility for organisations to receive funding from both Australia Council and the new program, and the potential for arts funding to be used for political motives in marginal electives all further compound the issues described above. It is expected that other submissions will address these issues in more detail; this submission to the Senate Inquiry focuses its attention on the short- and-long-term damage to Australia’s culture with respect to the activities of The Myer Foundation and Sidney Myer Fund. Next Steps The uncertainty, destabilising and damaging effects of the reallocation of funds from The Australia Council to the National Program of Excellence in the Arts could be addressed by: a securing of the program’s budget from a source other than the Australia Council an immediate reinstatement of the Australia Council’s budget in order that it might deliver on its strategic plan and Page 3 a commitment to transparency, communication and access for individuals, organisations and ensembles at all points from within the sector in order that their advice, counsel and expertise are considered regarding any future changes to the funding structures for Australian arts practices. Yours sincerely Leonard Vary Chief Executive Officer Page 4 .
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