National Performing Companies – Report on activity 2007/08 and 2008/09

List of contents Page

1 Minister’s Introduction 2

2 Introduction to the Report 3

3 About each of the National Performing Companies 4

4 Company profiles 6

5 Facts and Figures 11

6 Financial Outturn 13

7 Audiences 17

8 Monitoring and Assessment 18

9 Shared Services 19

10 More Recent Developments 20

Annex A 21

Annex B 23

Annex C 25

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1. Introduction by Fiona Hyslop MSP, Minister for Culture and External Affairs

It gives me great pleasure to present this report on the first 2 years of the ’s direct funding relationship with ’s 5 National Performing Companies.

It is hard to think of Scotland’s rich performing arts history and achievements without reference to each one of these 5 companies: the venerable RSNO, now over 100 years old; the youthful National , remarkably only in its fourth year of operation; and the richness of Scottish Ballet, Scottish Chamber Orchestra and Scottish Opera, now in their ‘middle years’ – are all playing a major part in bringing joy and inspiration to audiences across our nation.

As well as producing concerts and performances of the highest calibre, these companies are all committed to using their skills as artists, teachers and role- models in schools and communities to stimulate increased confidence, self-esteem and creativity in people of all ages, abilities and backgrounds.

The 5 companies are also excellent ambassadors for Scottish culture, proudly promoting Scotland overseas and introducing international audiences to the wealth of artistic talent that is nurtured and developed in our vibrant country.

I am delighted to see the 5 National Performing Companies in such good financial and artistic health. This document is intended to share the essential facts and figures about their achievements publicly and to ensure that we conduct our relationship with these companies with appropriate transparency.

It is my intention to publish a document annually which reports on the achievements and outcomes of the 5 National Performing Companies.

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National Performing Companies – Report on activity 2007/08 and 2008/09

2. Introduction:

2.1 Scotland’s 5 National Performing Companies came into a direct funding relationship with the Scottish Government in April 2007, having previously been clients of the Scottish Arts Council. The decision to change the mechanism for funding the companies was taken during 2006 and work was started to implement this change at the Scottish Government in January 2007.

2.2 This report is intended to highlight the key achievements and operating outcomes of all 5 companies during the period 2007/08 and 2008/09.

There are 5 National Performing Companies: o National Theatre of Scotland (NTS) o Royal Scottish National Orchestra (RSNO) o Scottish Ballet o Scottish Chamber Orchestra (SCO) o Scottish Opera

2.3 Collectively and individually these companies make a significant contribution to cultural life in Scotland. They operate on a scale which distinguishes them from any other performing arts organisations in Scotland and which gives them a major presence on Scotland’s largest stages. They are also dedicated to working flexibly and on a variety of scales to deliver their performance and education programmes to as many of Scotland’s communities as possible, across the length and breadth of the country.

2.4 Between 2007/08 and 2008/09 the National Performing companies gave 1,939 performances and delivered 5,425 education events. Over 1 million people saw the companies perform during this period and there were 202,370 participations in their outreach and education programmes.

2.5 In partnership with the many and diverse performing arts organisations operating in Scotland, some of which are funded by the Scottish Arts Council, the National Performing Companies help to deliver the Scottish Government’s policy commitment to ‘support the arts, culture and creativity; and to maximise access to, appreciation of and participation in, the arts, culture and creativity’.1

2.6 The relationship between the Scottish Government and the 5 national performing companies is managed by the Cultural Excellence Team within Culture Division. The creation of a productive, informed, open and mutually respectful relationship between the 2 parties was aided, in part, by the inclusion in the initial sponsorship team of 2 secondees from outwith the Scottish Government – a financial expert and one with extensive performing arts experience.

2.7 Whilst no longer in a direct funding relationship with the Scottish Arts Council, the 5 National Performing Companies are required to retain good relations with this major arts funding body to ensure that a cohesive and strategic approach to funding across the sector can be achieved. The National Performing Companies will need to establish a good, complementary relationship with when it emerges in 2010.

1 Public Service Reform (Scotland) Bill – section 26 and 27. www.scottish.parliament.uk/s3/bills/26-PubSerRef/index.htm

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3. About each of the National Performing Companies

3.1 Each of Scotland’s 5 National Performing Companies arrived with the Scottish Government in fine artistic form in April 2007 and went from strength to strength during 2007/08 and 2008/09.

3.2 Any financial or artistic difficulties from previous years were put firmly behind them, and a new era of confidence, optimism and generosity has developed which enables each company to produce the highest quality of work for audiences across Scotland and further afield.

3.3 Whilst the companies are now part of a collective group, each of the National Performing Companies operates on a different business model with a distinctive set of aims and objectives. Each is at a different stage in its history and works in different ways with different numbers of creative and performing artists, and support staff, to deliver a wide range of performances and education work on a variety of scales.

3.4 They all operate the same constitutional structure, being independent private companies limited by guarantee and registered as charities in Scotland. They are all governed by a Board of voluntary, non-executive Directors, which may include some designated local authority Councillors. The Scottish Government plays no part in the recruitment of any Board or Senior staff appointments for any of the National Performing Companies. The Scottish Government receives Board papers but does not attend Board meetings.

3.5 Taken together, the companies’ performance activity spans a diversity of classical and contemporary music, opera, dance and theatre and takes place in the concert halls and theatre venues of Scotland’s largest cities and smallest villages, as well as in venues across the UK and overseas.

3.6 All of the companies place the role of education, learning and community involvement at the heart of their artistic purpose. They each deliver a programme of workshops, masterclasses, performances and courses both within the formal Education sector and in a wider community Outreach context. This work is tailored to the particular artform and policy of each company, but shares the same broad aim to inform, involve and inspire people of all ages and abilities in and about the performing arts.

3.7 Whilst they all recognise the value of the individual experience of the audience or participant in relation to their work, they all share a desire to communicate with as large and diverse an audience as possible.

3.8 Notable achievements during the 2007/08 and 2008/09 period include:

3.8.1 The National Theatre of Scotland achieving international success with Black Watch by Gregory Burke, originally produced in 2006. During 2007 and 2008, the production undertook 2 successful runs in New York and received audience and critical acclaim from performances throughout Scotland, in Los Angeles, Toronto, Virginia, Sydney, London and across the UK. The production won many awards during this period, including 4 Olivier Awards and the New York Drama Critics' Circle Awards for Best Foreign Play. The company’s production of The Bacchae saw the return of Alan Cumming to the Scottish stage after a break of 17 years.

3.8.2 The Royal Scottish National Orchestra undertaking its first foreign tour with Music Director Stéphane Denève in January 2008. The Orchestra performed 6 concerts to great acclaim across Germany, Austria and Croatia with American violinist Hilary Hahn. The company has since returned to the continent with Denève on a highly prestigious tour in February 2010.

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3.8.3 In recognition of its impressive track-record for commissioning and programming, Scottish Ballet winning the Company Prize for Outstanding Repertoire (Classical) at the Critics’ Circle National Dance Awards in January 2008, the Oscars of the UK dance world.

3.8.4 The Scottish Chamber Orchestra appointing the young conductor Robin Ticciati as its new Principal Conductor, following a highly successful series of concerts given by Ticciati with the orchestra in the and Islands in summer 2008. Ticciati is a rising star of British music-making who is much in demand across the world.

3.8.5 Scottish Opera appointing its new Music Director, Francesco Corti following his success conducting Puccini’s Madama Butterfly for the company in spring 2007. The company’s production of Donizetti’s Lucia di Lammermoor, directed by Scottish director John Doyle, and was selected by Valery Gergiev to be presented by the Mariinsky Opera in St Petersburg as one of its key productions for 2009.

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4. Company profiles:

4.1 The National Theatre of Scotland (NTS) aims ‘to create work that excites, entertains and challenges audiences at home and beyond and which makes Scotland proud.’ 2 The company started producing theatre in 2006 and performed to over 319,000 people during 2007/08 and 2008/09. The company is an independent theatre producer, based in Glasgow but operating without a venue and founded on the principles of collaboration and community. It builds its strength from the many and varied partnerships it creates with artists, producers, theatre venues, schools, communities and funders in order to make theatre happen.

4.1.1 The NTS operates a very adaptable business model, working on a project basis to engage creative teams and pools of performers as required to deliver each production. It commissions new plays as well as new versions of classic texts and co-produces with other Scottish-based and international theatre companies to enable contemporary theatre making of the highest quality and for all ages.

4.1.2 National Theatre of Scotland’s Learn programme presents a wide range of national and regionally-focussed education and community projects which have been described by participants as ‘life-changing’ and ‘remarkable’. These include the annual Exchange festival which brings together youth theatres from across Scotland.

4.1.3 Key achievements 2007/08 – 2008/09*

4.1.4 NTS presented 30 productions, of which 24 were brand new and the remainder being revivals of works previously created by NTS or its associates. These productions included work for children and families, small scale productions created for touring to rural Scottish venues, site-specific projects, work at the Edinburgh International Festival, plays by emerging and established writers, workshop productions and works-in-progress.

4.1.5 NTS Learn presented 16 major education projects, delivered through 2,714 events, involving nearly 5,000 people and resulting in over 51,000 participations in their programme. These projects included 6 Transform projects in Arran, South Lanarkshire, East Ayrshire, East Renfrewshire, Dumfries and Dunfermline in partnership with Determined to Succeed and Scottish Power Learning. Transform has become established as a beacon of good practice, generating theatre for and with local communities in a sustained and meaningful way.

4.1.6 The company performed in 49 different venues and delivered education projects in 37 different venues across Scotland, as well as performing in 17 different venues in the UK.

4.1.7 NTS toured extensively overseas, and received £285,000 from the Scottish Government’s International Touring Fund to support performances of Black Watch in New York, Los Angeles, Toronto, Virginia and Dublin, and The Bacchae in New York. The company also toured to Australia and New Zealand in 2008.

4.1.8 The company had a turnover of £12,999,879 during 2007/08 and 2008/09 of which £8,476,884 or 65% was received in core grant from the Scottish Government. The company generated 35% of its income from non Scottish Government sources, including £3.44m in performance and education fees and box office receipts.

*see 6.4.1 below for breakdown of financial out-turn by year for 2007/08 and 2008/09. See 7.3 for breakdown of attendance by year for 2007/08 and 2008/09

2 National Theatre of Scotland website, www.nationaltheatrescotland.com 6

4.2 The Royal Scottish National Orchestra (RSNO) is Scotland’s symphony orchestra, employing over 80 musicians.

4.2.1 Formed in 1891 as the Scottish Orchestra the company became the Scottish National Orchestra in 1950 and was awarded Royal Patronage in 1991. Many renowned conductors have contributed to its success, including Walter Susskind, Sir Alexander Gibson, Bryden Thomson, Conductor Laureate Neeme Jarvi, Conductor Emeritus Walter Weller, and Conductor Emeritus Alexander Lazarev. Stéphane Denève became Music Director in September 2005, a partnership which enjoys great acclaim, at home and abroad. The company is based at the Henry Wood Hall in Glasgow.

4.2.2 The RSNO presents over 30 weeks of concerts each year for its main seasons in Edinburgh, Glasgow, Aberdeen, Inverness, Perth and Dundee, as well as giving increasingly regular appearances as a visiting orchestra in major concert series across the UK and overseas, including the Edinburgh International Festival and the BBC Proms in London.

4.2.3 The RSNO plays a wide range of repertoire, and regularly commissions new works from contemporary composers. It also has an impressive recording history, and has been nominated for 8 GRAMMY Awards in the last 7 years.

4.2.4 The company delivers an extensive education programme, which includes concerts especially designed for nursery, primary and secondary school-aged children. Its flagship project – Out and About – sees the whole company take up residence in a different local authority area for one week each year. Through a series of concerts, workshops, master classes and talks in schools, colleges, community groups and venues, the RSNO creates a powerful musical presence in a region and leaves a legacy of renewed interest in and enjoyment of orchestral music.

4.2.5 Key achievements 2007/08 – 2008/09*

4.2.6 In total the RSNO gave 177 performances during this period and played to over 238,000 people.

4.2.7 Thirty-three separate education projects were presented, involving 44,317 people of all ages. In nursery and secondary schools 23,296 children attended one of 41 dedicated children’s concerts

4.2.8 The company also brought in a whole new audience to the Glasgow Royal Concert Hall through its Orchestra+ season which featured collaborations with artists Elvis Costello, hip-hop DJ Beni G and leading video games composers.

4.2.9 Out and About reached over 3,000 people in one week in Angus in 2007/08 and 3,880 in Perth and Kinross in 2008/09.

4.2.10 The orchestra further developed its international profile under the direction of Stéphane Denève, receiving £98,000 from the Scottish Government’s International Touring Fund to support highly acclaimed performances in Spain, Germany, Austria and Croatia.

4.2.11 The company had a turnover of £13,814,081 during 2007/08 and 2008/09 of which £7,965,250 or 58% was received in core grant from the Scottish Government. The company generated 42% of its income from non-government sources, including box office income, performance fees, sponsorship and fundraising.

*see 6.4.1 below for breakdown of financial out-turn by year for 2007/08 and 2008/09. See 7.3 for breakdown of attendance by year for 2007/08 and 2008/09 7

4.3 Scottish Ballet (SB)

4.3.1 Founded by Peter Darrell and Elizabeth West as Western Theatre Ballet in Bristol in 1957, the Company moved to Glasgow in 1969 and was renamed Scottish Ballet. The company currently employs 36 full-time dancers. In June 2009, it moved to new purpose-built national headquarters at Glasgow’s Tramway Arts Centre following an impressive fundraising and building project.

4.3.2 Scottish Ballet regularly performs in the large-scale theatres of Aberdeen, Edinburgh, Glasgow and Inverness and periodically in smaller venues throughout Scotland, with strong classical technique at the root of all of its work. Its broad repertory includes new version of the classics, seminal pieces from the 20th century modern ballet canon, signature pieces by living choreographers and new commissions.

4.3.3 The company also delivers a broad-ranging access and participation programme which ‘raises awareness and appreciation of Scottish Ballet and its artistic direction, promotes ballet as a contemporary art form and enhances the lives and learning of people of all ages and abilities’.3

4.3.4 Since being awarded the TMA Award for Outstanding Achievement in Dance in 2004 in recognition of its modernisation programme and dynamic performances, the company, and several of its individual members, has gone on to win a clutch of national and international awards each year.

4.3.5 Key achievements 2007/08 – 2008/09*

4.3.6 During the 2 year period, Scottish Ballet presented 8 programmes of work, which included 6 world premieres and 2 premieres of work new to Scottish Ballet.

4.3.7 The world premieres included 2 new short commissions from company members Diana Loosmore and Gregory Dean and new works for large stages by Stephen Petronio, Ashley Page and Krzysztof Pastor.

4.3.8 The company gave 164 performances during this period and played to over 125,600 people, including performances in London, Cardiff, Belfast and Newcastle.

4.3.9 The company returned to small-scale touring after a break of several years, playing to nearly 3,000 people in 12 venues across Scotland.

4.3.10 Scottish Ballet delivered 993 separate education sessions, involving 7,540 people and resulting in 23,153 participations in their programme.

4.3.11 Nearly 200 children took part in the company’s celebrated weekly Associates programme in Glasgow which provides high level training for school children from across Scotland wishing to study ballet with a view to progressing to a professional level. Eleven local authorities gave support to children from their areas wishing to take part in this prestigious programme.

4.3.12 The company had a turnover of £12,429,497 during 2007/08 and 2008/09 of which £9,151,131 or 74% was received in core grant from the Scottish Government. The company generated 26% of its income from non-government sources, including £2.38m in box office income and performance and education fees and £775,000 through fundraising.

*see 6.4.1 below for breakdown of financial out-turn by year for 2007/08 and 2008/09. See 7.3 for breakdown of attendance by year for 2007/08 and 2008/09

3 Scottish Ballet website, www.scottishballet.org.uk 8

4.4 Scottish Chamber Orchestra (SCO)

4.4.1 The smallest of all the National Performing Companies, the SCO was formed in 1974 and is internationally recognised for its innovative approach to music-making and programme planning. The orchestra has a regular membership of 37 players and is based in Edinburgh.

4.4.2 The Orchestra performs throughout Scotland for up to 30 weeks of the year, giving regular seasons of concerts in Edinburgh, Glasgow, Aberdeen, Inverness, Perth and St Andrews, as well as annual tours of the Scottish Highlands and Islands and South of Scotland, and appearances at the Edinburgh, East Neuk, St Magnus and Aldeburgh festivals and the BBC Proms. The orchestra also has a busy diary of international engagements.

4.4.3 The SCO’s long-standing relationship with its Conductor Laureate, Sir Charles Mackerras, has resulted in many renowned performances and recordings. Their recording of Mozart’s last 4 symphonies won the Symphonic Works category of the 2009 MIDEM Awards; BBC Music Magazine Disc of the Year and a Classical BRIT Award.

4.4.4 Other conductors who appear regularly with the SCO include Principal Guest Conductor Olari Elts, Conductor Emeritus Joseph Swensen, Andrew Manze, Frans Brüggen, John Storgårds, Thierry Fischer, Louis Langrée, Andrew Litton and Nicholas McGegan.

4.4.5 The orchestra has enjoyed close links with leading composers including Sir Peter Maxwell Davies, Mark-Anthony Turnage, and James MacMillan and regularly commissions and performs new compositions. The orchestra is also known for its pioneering education work, which includes work with children of all ages as well as adults.

4.4.6 The orchestra broadcasts regularly and has a discography exceeding 140 recordings.

4.4.7 Key achievements 2007/08 – 2008/09*

4.4.8 In total the SCO gave 240 performances during this period and played to over 154,400 people. It also presented 377 separate education sessions, involving 8,456 people.

4.4.9 The Company introduced a touring programme to serve central Scotland directly for the first time in 2007/08. Performing in Motherwell, Falkirk, Paisley, Rutherglen, Kilmarnock and Dunfermline across the 2 years, they increased audiences from 555 in 2007/08 to 822 in 2008/09, a rise of 32% in just one year.

4.4.10 Through its skills development programme, the orchestra developed a relationship with renowned Indian composer and sarod player, Amjad Ali Kahn which culminated in the creation of a new piece, Samaagan. This was the centrepiece of a ground-breaking tour of India in February 2009, supported with £200,000 from the Scottish Government’s International Touring Fund.

4.4.11 The company had a turnover of £8,515,553 during 2007/08 and 2008/09 of which £4,154,051 or 49% was received in core grant from the Scottish Government. The company generated 51% of its income from non-government sources, including £2.38m in box office income and performance and education fees and £1.21m through fundraising.

*see 6.4.1 below for breakdown of financial out-turn by year for 2007/08 and 2008/09. See 7.3 for breakdown of attendance by year for 2007/08 and 2008/09

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4.5 Scottish Opera

4.5.1 Founded in 1962 by Sir Alexander Gibson, Scottish Opera is the largest of the National Performing Companies and the largest performing arts organisation in Scotland with a considerable reputation for its distinguished productions.

4.5.2 The company is based in Glasgow and currently produces 4 main-stage operas a year in Glasgow, Edinburgh, Aberdeen and Inverness as well as undertaking annual tours of three small- scale productions to over 50 theatres, village halls and community centres across Scotland.

4.5.3 The company operates a long-standing, highly successful and versatile education programme which delivers a huge variety of projects to people of all ages and abilities across the whole of Scotland, including over 12,000 primary school children each year.

4.5.4 Key achievements 2007/08 – 2008/09*

4.5.5 During the 2 year period, Scottish Opera presented 22 programmes of work which included 18 new productions and 4 revivals. This programme included 2 co-productions with other major international opera companies, a co-production with the Edinburgh International Festival, 2 joint ventures with the Royal Scottish Academy of Music and Drama and a small-scale opera for nursery and primary aged children

4.5.6 Scottish Opera gave 290 performances during this period and played to 159,509 people. This included 31 concerts given by the Orchestra of Scottish Opera, including its regular series at St Andrew’s in the Square and appearances at Glasgow’s Merchant City Festival.

4.5.7 Over 800 separate education and outreach sessions were held in Scotland during this period resulting in the participation of nearly 30,000 children, young people and adults. The company worked with 320 schools in 28 local authority areas.

4.5.8 The company commissioned and presented 10x15 minute world-premieres as part of its Five:15 Operas Made in Scotland project in sell-out performances in Glasgow, Edinburgh and London, which included new work by composers Craig Armstrong, Stuart MacRae, Gareth Williams and Stephen Deazley with librettos by Ian Rankin, Alexander McCall Smith and Louise Welsh. The programme is part of a 5 year project to find the next generation of Scotland’s opera- makers, composers and librettists

4.5.9 Francesco Corti made his debut as the company’s Music Director at the 2008 Edinburgh International Festival with Smetana's The Two Widows, for which Scottish Opera won a Herald Angel Award.

4.5.10 The company had a turnover of £22,576,929 in 2007/08 and 2008/09 of which £16,752,801 or 74% was received in core grant from the Scottish Government. The company generated 26% of its income from non-government sources, including £3.29m in box office income and performance and education fees and £2.04m through fundraising.

*see 6.4.1 below for breakdown of financial out-turn by year for 2007/08 and 2008/09. See 7.3 for breakdown of attendance by year for 2007/08 and 2008/09

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5. Facts and Figures

5.1 Funding Allocations

5.1.1 Funding for the National Performing Companies was allocated as followed for the period 2007/08 and 2008/09.

2007/08 2008/09 COMPANY (£m) (£m) Royal Scottish National Orchestra 3.77 4.19 National Theatre of Scotland 4.10 4.38 Scottish Chamber Orchestra 2.05 2.10 Scottish Ballet 4.53 4.62 Scottish Opera 8.30 8.46 Total 22.75 23.75

5.1.2 For 2008/09 – the start of the current Spending Review period - the Scottish Government awarded each of the companies an increase of 2% on their 2007/08 grants in recognition of their significant artistic successes over the previous year. This funding was intended to allow the companies to consolidate and build on their achievements to date.

5.1.3 Additional resources were also made available to some of the companies to allow them to achieve specific operational objectives. These allocations were designed to recognise the particular circumstances of each company and the fact that they were each at different stages in their development.

5.2 International Touring Fund

5.2.1 Each company was also eligible to apply to a dedicated International Touring Fund which comprised £350,000 in 2007/08 and 2008/09. This Fund was used to support the companies’ performing activities overseas, with priority given to tours to areas of significance to the Scottish Government.

5.2.2 Funding was allocated as follows:

2007/08 2008/09 COMPANY (£) (£) Royal Scottish National Orchestra 59,000 39,300 National Theatre of Scotland 195,000 89,789 Scottish Chamber Orchestra 96,000 219,000 Scottish Ballet 0 0 Scottish Opera 0 1700 Total 350,000 349,789

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5.2.3 Countries toured to by these companies with support from the ITF include:

2007/08:  NTS USA (Los Angeles, New York)  RSNO Germany, Austria, Croatia  SCO Germany, The Netherlands, Spain, Austria, Belgium

2008/09:  NTS USA (Virginia, New York), Canada, Ireland  RSNO Spain  SCO India, Poland, Turkey, Hungary  SO Russia and Georgia (research and development)

5.3 Capital Funding

5.3.1 During 2008/09, the companies were allocated the following in capital funds.

COMPANY 2008/09 Purpose (£) Royal Scottish National  Musical instrument purchase Orchestra  Rehearsal room improvements Essential office improvements  Investment in joint health and safety project to monitor orchestra 72,500 volume levels National Theatre of Scotland 97,987  Office re-location costs Scottish Chamber Orchestra  Musical instrument purchase  Education equipment purchase Essential office improvements  Investment in joint health and safety project to monitor orchestral 63,000 volume levels Scottish Ballet  Investment in joint health and safety project to monitor orchestral 4,500 volume levels Scottish Opera  Essential workshop improvements  Purchase of additional surtitling machine  Investment in joint health and safety project to monitor orchestral 59,500 volume levels Total 297,487

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6. Financial Outturn

6.1 The companies all operate a mixed economy, and receive income from a variety of sources, in addition to a grant from the Scottish Government. Each company is required by the Scottish Government to seek to increase its income from private sponsorship and non-public income year on year. These sources include earned income from ticket sales, performance and education fees, fundraising and commercial or merchandising income.

6.2 Income

6.2.1 Between 2007/08 and 2008/09 the 5 companies had a combined turnover of £70.3m of which 66% or £47.3m was received from the Scottish Government. The remaining 34% or £23.8m was generated by the companies from performances, education work, merchandising and fundraising, and from other public grants.

6.2.2 The companies’ earned income from non-public sources, ie excluding income from Scottish Government and local authorities rose 6.5% across the 2 years, from £10.1m in 2007/08 to £10.7m in 2008/09.

6.2.3 Of this income, box office and performance fees accounted for 18% or £6.1m of total turnover of all the companies in 2007/08 and 19% or £6.9m in 2008/09.

6.2.4 Income from commercial sponsorship and fundraising remained at 9% of total turnover in 2007/08 and 2008/09, taking the total amount of income raised through charitable donations and commercial sponsorship to £3.1m in 2008/09.

6.2.5 Core income from Local Authorities represented 2.4% of the total income of all the companies in 2007/08 and 2008/09.

6.2.6 None of the companies experienced a significant reduction in earned income that could be directly attributable to the economic downturn during 2008/09, although some companies lost long-standing support from charitable trusts and foundations and from individual donors. All experienced difficulty in getting commercial organisations to commit to future sponsorships and it remains to be seen how this will affect future income generation.

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6.2.7 A summary breakdown of income as a percentage of overall turnover for all the companies combined for 2007/08 and for 2008/09 is show below

Income Total Percentage Income Total Percentage 2007/08 £ of total 2008/09 £ of total turnover turnover Total box Total box 6,178,948 18% 6,913,311 19% office income office income Education Education 261,675 1% 224,825 1 % income (fees) income (fees) Merchandising 486,781 1% Merchandising 500,964 1% Sponsorship Sponsorship and 3,190,053 9% and 3,144,635 9% fundraising fundraising Local authority Local authority 544,028 1% 694,375 1% core core Local authority Local authority 203,267 1% 285,898 1.5% project4 project Other grant Other grant 214,741 1% 135,795 0.5% income income Scottish Scottish Government 22,749,633 67% Government 23,750,234 66% core core Scottish Scottish Government 390,000 1% Government 466,776 1% project5 project Total income Total income across all across all 5 National 34,219,126 100% 5 National 36,116,813 100% Performing Performing Companies Companies

6.3 Expenditure

6.3.1 Between 2007/08 and 2008/09 the 5 companies expended a total of £69.3m. A high proportion of this spend went directly into the purchase of goods, services and activity which contribute directly to the Scottish economy, ie through contracts with Scottish companies and suppliers.

6.3.2 As touring companies, these organisations make a significant contribution to the economy of the local areas into which they travel, achieving both financial investment and equality of opportunity across the country.

6.3.3 The companies are major employers, and between then employed or engaged over 3,600 people during 2007/08 and 2008/09.

6.3.4 The companies are leading investors in the training and skills development of Scottish- based creative individuals at all levels, be they of school-age, in higher education, professionals or in the community. They also invest in the training and skills development of Scotland’s technical, administrative and producing talent.

4 Includes supplementary grants to RSNO and SCO from City of Edinburgh Council during closure of Usher Hall during 2007/08 and 2008/09 5 Includes International Touring Fund in both years and some capital funds expended during 2008/09 14

6.3.5 As arts organisations, all of the 5 National Performing Companies are concerned to invest as much of their resources as possible into support for artists and the creative process.

6.3.6 In 2007/08, £25.6m was spent across all the companies directly on putting work onto stages and into education events for audiences and participants. In 2008/09 this rose to £27.8m. In both years, this represents 77% of total expenditure.

6.3.7 This work was supported by marketing and fundraising activity to the value of £2.8m or 9% of total spend in 2007/08 and £3.5m or 10% in 2008/09.

6.3.8 A further £4.8m or 15% of total expenditure was spent on overheads and administration services in 2007/08 and £4.7m or 13% of total expenditure in 2008/09.

6.3.9 A summary breakdown of expenditure as a percentage of overall spend for all the companies combined for 2007/08 and for 2008/09 is show below

Expenditure Total Percentage Income Total Percentage 2007/08 £ of total 2008/09 £ of total turnover turnover Productions Productions and 23,800,149 71% and 25,882,407 72% performances performances Education Education 1,781,279 5% 1,892,523 5% activity activity Marketing 2,173,157 7% Marketing 2,691,465 7% Sponsorship Sponsorship and 720,242 2% and fundraising 840,996 2% fundraising Overheads Overheads 2,754,377 8% 2,757,048 8%

Staff salaries Staff salaries 1,846,135 6% 1,728,984 5%

Governance Governance 280,394 1% 247,388 1%

Total Total expenditure expenditure across all across all +33,355,733 100% 36,040,811 100% 5 National 5 National Performing Performing Companies Companies

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6.4 Table of year end position

6.4.1 Below is a summary of the year-end operating position of each company. It shows the total income and expenditure incurred directly on achieving their artistic and business purpose for each year and excludes all Balance sheet figures, ie capital or other assets. .

2007/08 - actuals NTS RSNO SB SCO SO Expenditure 6,150,73 6,449,26 5,857,82 4,212,08 10,685,82 1 8 0 6 8 Income 6,093,45 6,581,12 6,128,80 4,228,66 11,187,07 2 5 2 8 9 Surplus/deficit -57,279 131,857 270,982 16,582 501,251

Transfers/adjustments 0 -125,000 19,310 0 0 Year end position -57,279 6,857 290,292 16,582 501,251

Scottish Government 4,099,76 3,775,00 4,530,26 2,051,38 8,293,227 core grant 0 0 3 3 % of total turnover 67 57 74 49 74

2008/2009 - actuals NTS RSNO SB SCO SO Expenditure 6,938,44 7,149,69 5,928,07 4,620,99 11,791,21 0 6 9 9 7 Income 6,906,42 7,232,95 6,318,82 4,286,88 11,389,85 7 6 2 5 0 Surplus/deficit -32,013 83,260 390,743 25,886 -401,367

Transfers/adjustments 0 -80,000 -256,853 0 0 Year end position -32,013 3,260 133,890 25,886 -401,367

Scottish Government 4,377,12 4,190,00 4,620,86 2,102,66 8,459,574 core grant 4 0 8 8 % of total turnover 63 58 73 49 74

6.4.2 A total of £496,706 was accumulated over the two year period across all 5 companies, or 0.7% of total turnover.

6.4.3 All the companies are required by the Office of the Scottish Charities Register (OSCR) to hold a Reserves policy. Each company has specified that any reserves which may be accumulated are to be used for the express purpose of ensuring future investment to deliver the artistic policy of the company.

6.5 Effective Government

6.5.1 The companies are committed to the Scottish Government’s Effective Government programme which requires all sponsored bodies to achieve 12% efficiencies savings over the 3 year period from 2008/09 to 2010/11, against a baseline out-turn of 2007/08. The companies exceeded their joint 2% target in 2008/09 and identified savings of £929,000, and are projecting 4% savings, or a further £900,000, in 2009/10.

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7. Audiences

7.1 Geographic Spread

7.1.1 The National Performing Companies are all committed to delivering their work across the whole of Scotland.

7.1.2 During 2007/08 their work was delivered in 31 of Scotland’s 32 local authority areas and in 2008/09 it was delivered in 28.

7.2 Attendance levels

7.2.1 The number of performances and education events each company produces each year will vary according to repertoire, venue availability, annual touring patterns, relationships with partners and stakeholders, and funding from schemes and projects. A comparison of attendance figures from year to year may not, therefore, tell the whole story of any one company’s output and impact.

7.2.2 Overall, however, the average number of people attending a performance by the National performing Companies rose from 519 in 2007/08 to 520 2008/09. This was achieved despite several variables, including the closure of the Usher Hall in Edinburgh from autumn 2007 to autumn 2009.

7.3 Breakdown of attendance by company

2007/08 Number of Audience Number of Education Performances Numbers education Participations events NTS 570 165,999 1,016 16,245 RSNO 90 121,869 355 22,377 SB 67 61,668 421 12,079 SCO 125 85,630 200 3,551 SO 133 76,523 365 35,973 Total 985 511,689 2,357 90,225

2008/09 NTS 498 153,188 1,698 35,186 RSNO 87 116,212 167 21,940 SB 97 63,948 572 11,074 SCO 115 79,789 177 4,905 SO 157 82,986 454 39,041 Total 954 496,123 3,068 112,146

7.3.1 All data drawn from information supplied by the companies at the end of each year as part of their annual review and completion of Annex B of their grant award letters.

7.3.2 Education participations records a participant in an education programme each time they attend a session. This figure therefore includes some repeat visits.

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8. Monitoring and Assessment

8.1 In return for significant levels of Scottish Government investment, the National Performing Companies are required to deliver against an agreed set of objectives.

8.2 National Performing Company Criteria

8.2.1 The companies work to a set of criteria which outlines what is expected of them in terms of performance excellence, educational activity, geographic reach, international exposure, leadership within the cultural sector, financial management and shared working. (see Annex A for the full set of criteria).

8.2.2 At the start of each financial year, each company is required to set specific objectives in relation to each criterion. Progress towards achieving these objectives is assessed in a mid-year and end-of-year review. Each company is required to meet all of these criteria in order to maintain their status as National Performing Companies.

8.3 Programme of Work

Each company is required to outline its anticipated performance and education programme in advance of each year, together with its anticipated audience and participant numbers. Any variation of the programme is required to be discussed and agreed in advance with the Scottish Government. The actual outturn in relation to all programme objectives is also assessed twice yearly, with justification sought for variations on the anticipated audiences/participant numbers.

8.4 Financial Management

Each company is obliged to produce a detailed budget for each year of operations, which is scrutinized and assessed in relation to the proposed artistic programme prior to the confirmation of grant. Each company is then required to submit regular financial management accounts detailing their ongoing financial position, with accompanying narratives as required to explain any variances.

8.5 Artistic Assessment

8.5.1 The artistic programme of each company is assessed by a group of independent and expert External Assessors. A different group of Assessors views and reports on the performance and education programme of each company. Thirty-two individuals who are respected and knowledgeable within their respective field were engaged during 2007/08. [A full list of External Assessors is attached in Annex B]. The Assessors are engaged with the full support of the companies and all reports are made available to the companies. The purpose of these reports is to give the Scottish Government and Ministers an objective and informed overview of the performance and education programme of each company. The Assessors have a wide frame of reference and are considering the work they see in a wider UK and international context.

8.6 Lead officers from the Scottish Arts Council’s Music, Drama and Dance departments are included as External Assessors to ensure continuity and communication between the SAC and the 5 National Performing Companies.

8.6.1 The makeup of the group of External Assessors is to be reviewed every 3 years.

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8.7 Other Assessment

8.7.1 The Scottish Government’s National Performing company sponsorship team collate press and media response to each company on a daily basis.

8.7.2 The companies are also requested to submit any evaluations undertaken about their own programmes which help to give an external response to their work, ie through feedback from workshop participants/teachers etc and audience questionnaire responses.

8.8 National Performance Framework

8.8.1 From 2009–2010 each company will be required to set objectives against at least 3 of the Scottish Government’s overarching National Outcomes. These will be articulated as a key part of each organisation's business plan. Evidence of how each target is being met will be monitored on an ongoing basis and formally at the Mid year and End of year Review.

8.8.2 In addition to the formal review meetings, information is exchanged and discussed between each company and the Scottish Government on a regular and continuous basis.

9. Shared Services

9.1 Since coming into a direct funding relationship with the Scottish Government, the 5 companies have been encouraged to find ways of working together to maximise the impact and effectiveness of their operations.

9.2 The National Performing Companies Forum was established in 2007 to bring the Chief Executive Officers together every 2 months, with 2 meetings each year including company Chairs. The Forum ethos extends down within the companies, with similar regular meetings of Marketing, Education and Finance personnel.

9.3 Through the Forum a number of joint initiatives have been discussed and developed, including the appointment of a Health and Safety Officer, under the auspices of the Federation of Scottish Theatre, whose role is partly paid for by the national companies but whose remit extends to serve the whole sector.

9.4 A study was undertaken into the likely impact of combining their backroom HR and payroll services during 2007/08. Whilst it was possible that ultimate savings could have been made through this process in future years, the cost of setting this service up was deemed to be prohibitive and contrary to the expectations of such combined working.

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10. More Recent Developments

10.1 Initial achievements in 2009/10 include:

10.1.1 National Theatre of Scotland have completed 4 Transform projects in Orkney, Caithness, Moray and East Renfrewshire since April 2009 and NTS and Scottish Power’s partnership on the Transform projects have been recognised through the award of the Arts & Business award for Sustainability. The company has also toured to 16 small venues across Scotland with a double-bill of Liz Lochhead’s play Mary Queen of Scots got her head Chopped Off and My Teacher’s a Troll, a new play by Dennis Kelly, opened a new show in Orkney Long Gone Lonesome by Duncan McLean and launched a major tour of Rona Munro’s version of The House of Bernada Alba across Scotland.

10.1.2 RSNO has been the orchestra in residence at the St Magnus Festival in Orkney and launched its 2009/10 season at the re-opened Usher Hall, as well as appearing as part of the 2009 Edinburgh International Festival. The company has also re-developed and strengthened its education strategy and is planning a whole new approach to working with children and young people.

10.1.3 Scottish Ballet have undertaken a highly successful tour to China in May 2009 and launched their 40th anniversary season with an outstanding triple bill at London’s Sadler’s Wells Theatre in September 2009, including works by Balanchine, Pastor and Forsyth. In June 2009 the company moved into their fabulous new premises at Tramway Arts Centre in Glasgow following a successful campaign to raise £11m over 5 years, and in September 2009 the first students arrived in Glasgow to study on a new degree course in Modern Ballet which is being pioneered by the company in collaboration with the Royal Scottish Academy of Music and Drama.

10.1.4 SCO have performed at the BBC Proms in London with Canadian conductor Yannick Nezet-Seguin receiving outstanding critical acclaim. They received an Archangel Award for their performances as part of the 2009 Edinburgh International Festival, becoming the first ever recipient of 2 such awards, the first being in 2005. In August 2009 the orchestra announced its new designation as Orchestra in Residence at the University of St Andrews.

10.1.5 Scottish Opera has had a huge success with its new production of La Traviata directed by Scottish director David McVicar, in a co-production with Welsh National Opera and has toured a new production of Katya Kabanova to 19 of Scotland’s smaller venues to great critical acclaim. It opened its 2009/10 season with a revival of Giles Havergal’s The Elixir of Love by Donizetti. The company’s relationship with Accenture has also been recognised through this year’s Arts and Business Award for Cultural Branding.

10.2 Into the future

10.2.1 All of the companies will be increasingly challenged to find ways to balance their artistic ambition with their financial responsibility in future years as income from all sources is likely to become more restricted.

10.2.2 It is to be hoped that by working together, and in partnership with the Scottish Government, the 5 National Performing Companies will continue to be a high quality, powerful and important force in Scottish and international cultural life.

10.2.3 It is the intention of the Scottish Government to produce an Annual Report on the National Performing Companies each year, reporting on the previous financial year ending 31 March.

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Annex A CRITERIA FOR ATTAINING AND MAINTAINING STATUS AS A NATIONAL PERFORMING COMPANY

In order to attain and maintain the status of National Performing Company, [the Company], working in partnership with the Scottish Executive, must:

1. Demonstrate that they have implemented the programme of activity detailed within their annual funding agreement, carried out large scale productions, operated on a scale which is international, national and local, and met the criteria set out in this annex, to appropriate high standards.

2. Achieve the highest professional artistic standards, subject to available resources, a continued commitment to:

 performance excellence;  bringing forward work of an international standard;  the ongoing development of new works and productions;  innovation, in terms of the work produced and the way it is produced;  inspiring audiences, enriching their lives and fostering creativity;  quality education activities; and  the development of artists.

3. Operate within the budgets agreed with the Scottish Ministers. In doing so, [the Company] will:

 provide the Scottish Executive with copies of budgets, business plans, and strategy documents;  provide detailed monthly management accounts, and quarterly updated cash flow projections, demonstrating that they are operating sustainably within agreed budgets;  provide draft annual accounts within 3 months of the financial year end, and copies of the final audited accounts once signed off, highlighting the reasons for any significant variations between draft and audited accounts;  adhere to the financial monitoring procedures set out in the Scottish Executive’s grant offer letter;  provide the Scottish Executive at regular intervals with copies of all Board papers and reports to the Board; and  ensure that any difficulties or significant changes in anticipated expenditure, and/or changes to the programme, that may arise are notified to the Scottish Executive immediately.

4. Demonstrate that they have endeavoured to achieve a year-on-year increase in private sponsorship and other non-public income, together with a genuine corporate commitment to developing this avenue of funding and thereby reducing the proportion of the Company’s income from the public purse.

5. While maintaining their distinctiveness with their own sector, work with the other National Companies to:

 share best practice;  develop new ways of working together;  explore joint artistic planning and scheduling; and

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 identify and deliver efficiencies and contribute to the Scottish Executive’s Efficient Government programme.

6. Cost-effectively deliver broad access to [the artform] by:

 ensuring that a range of high quality performances take place across the country (including full-scale where it can be accommodated), working with local authorities and others;  developing a broad and diverse audience base;  providing outreach community involvement programmes of an appropriately high standard, designed to give people across Scotland in all age and socio-economic groups the opportunity to experience, and where possible to participate in, [the relevant art form]; and  providing a full range of quality education activities targeted at people across Scotland, of all ages, and evaluating the success of those activities on an annual basis.

7. Provide leadership for the [blank] sector in Scotland, including:

 leading the way in new developments and practices, and ensuring that best practice is shared throughout the sector;  demonstrating compliance with relevant legislation such as employment law, including pay and conditions and trade union recognition, and health and safety legislation  working with the Scottish Arts Council/Creative Scotland to develop [their artform];  playing a major role in the development of talent, and provide entry-level career opportunities for those who have the talent to benefit from such opportunities;  attracting and retaining the very best talent available in the sector, to work within [the company];  being a leading exponent of Scotland’s cultural distinctiveness; and  securing international recognition as a leader in their sector.

8. Represent Scotland internationally, both in promotional terms and as a demonstration of the excellence of Scotland’s culture. In this context, [the Company] should:

 show the world that Scotland is a modern, innovative country with a vibrant, diverse culture;  through international performance, raise Scotland’s profile, attract artistic acclaim and stimulate pride; and  develop interest among those who may be able to bring potential economic and other benefits to the country, in partnership with the Scottish Executive.

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List of External Assessors Annex B

National Theatre of Scotland Michael Boyd Artistic Director Royal Shakespeare Company Sally Cowling Director, Drama and Dance British Council Stella Hall Director Culture 10, Newcastle and Gateshead Sue Storr Freelance consultant former CEO of Lyric Theatre, Hammersmith David Taylor Director of Drama Scottish Arts Council Sylvia Dow Freelance consultant former Head of Education at SAC6 Heather Lynch Head of Education Tramway Arts Centre, Glasgow Lucy Vaughan Head of Education Royal Lyceum Theatre, Edinburgh

RSNO Peter Davison Artistic consultant Bridgewater Hall, Manchester

Louise Mitchell Director Glasgow City of Culture, former Director of Glasgow Royal Concert Hall Stephen Maddock Chief Executive City of Birmingham Symphony Orchestra Timothy Walker Chief Executive London Philharmonic Orchestra Ian Smith Head of Music Scottish Arts Council Dee Isaac Course Leader Music in the Community, Univ. of Edinburgh. Also freelance composer, musician Alasdair Nicholson Freelance composer Artistic Director Designate, St. Magnus Festival Judith Webster Freelance arts education Royal College of Music. Consultant and teacher

Scottish Ballet: Val Bourne Freelance consultant former Director of Dance Umbrella Assis Carreiro Director Dance East Nigel Hinds Freelance consultant former CEO of The Place, London Derek Purnell Freelance consultant former Administrative Director of Birmingham Royal Ballet (BRB) Ian Spink Director City Moves, Aberdeen. Choreographer Anita Clark Head of Dance Scottish Arts Council Anne Gallacher Freelance consultant former Head of Education at BRB

Scottish Chamber Orchestra Sheila Colvin Freelance consultant former Director of Aldeburgh Festival Gillian Moore Head of Contemporary Culture South Bank Centre, London David Pickard General Director Glyndebourne Festival Opera Judith Serota Freelance consultant former Director of Spitalfields Festival, London James Waters freelance consultant former Associate Director of Edinburgh International Festival Ian Smith Head of Music Scottish Arts Council7 Heather Lynch Head of Education Tramway Arts Centre, Glasgow John Wallace Director Royal Scottish Academy of Music and Drama8

6 Stood down as an Assessor summer 2009 7 Ian Smith assessed SCO during 2007/08 and RSNO during 2008/09 8 Stood down as an Assessor during 2008 23

Scottish Opera Wyn Davies Artistic Director New Zealand Opera and freelance conductor Richard Mantle General Director Opera North Donald Maxwell Director former Director of National Opera Studio, London, freelance opera singer Nicholas Payne Director Opera Europa Graham Sheffield Artistic Director Barbican Centre, London Sylvia Dow Freelance consultant former Head of Education at SAC6 Katie Tearle Head of Education Glyndebourne Festival Opera Lucy Vaughan Head of Education Royal Lyceum Theatre, Edinburgh

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Annex C

Further information about each of the 5 National Performing companies can be found at: www.nationaltheatrescotland.com www.rsno.org.uk www.scottishballet.co.uk www.sco.org.uk www.scottishopera.org.uk

Each company’s end of year statutory accounts and annual reports for 2007/08 can be found at Companies House. Such reports for 2008/09 should be available for all companies during 2010. (www.companieshouse.gov.uk)

March 2010

25 ISBN 978 0 7559 9302 4 (web only publication)