Tasmanian Government's submission Inquiry into the impact of the 2014 and 2015 Commonwealth Budget decisions on the Arts Document title 1 Introduction The Tasmanian Government welcomes the opportunity to contribute to the Senate Legal and Constitutional Affairs References Committee's inquiry into the impact of the 2014 and 2015 Commonwealth Budget decisions on the Arts. The Tasmanian Government recognises the importance of the cultural sector to the Tasmanian community and the economic value it brings to the State. Tasmania currently holds a unique place in the world’s imagination. Our culture, cultural sector and products, and expression are a major contributor to our brand, particularly as we are increasingly being recognised as an attractive destination for tourists and for our cultural environment and industries. This success is the product of work over many years, with the opening of MONA in January 2011 providing a significant boost in the State's development and profile, and the Tasmanian Government is actively working to continue to grow this vibrant sector and encourage more cultural experiences and events in the State. To remain competitive, Tasmania needs to build upon its current unique position through characteristics and capabilities that distinguish it from its competitors and acknowledge both its advantages and constraints – culture is one such attribute. As an island state, with a regionally dispersed population, our unique cultural ecology is somewhat delicate and the impact of changes in policy and funding can have a significant impact on our Arts community. The Tasmanian Government recognises this, and has committed to maintaining State-based funding for Tasmania Arts grant programs, despite challenging budget conditions. While the Tasmanian Government is committed to supporting the Arts that make up our diverse and vibrant cultural sector, it is acknowledged that Commonwealth support has been a significant contributor to the ongoing viability of art programs in Tasmania. The Government acknowledges the Commonwealth Government’s decision to adjust policy settings and programs, but strongly urge it to consider the specific challenges and needs of Tasmania in the context of that change, and ask that the Commonwealth take steps to insulate our state from any unintended consequences. Unintended consequences may include affecting the capacity for artistic output, quality and delivery of work, financial support for artists and this in turn would have an impact on the broader economy. Of special concern is the potential loss of funding to young artists, independent practitioners and small to medium organisations. The effect of any changes in Commonwealth Arts policy and funding arrangements can be significant in Tasmania. With the exception of the Tasmanian Symphony Orchestra, our cultural ecology is comprised almost entirely of small to medium organisations, emerging and individual artists making the State particularly vulnerable to change. Impact on the small to medium sector The combination of changes to the Commonwealth Arts policy and funding arrangements and its as yet unknown impact on the existing programs of the Australia Council for the Arts (Australia Council), has led to uncertainty amongst local organisations and artists, as well as the larger institutions who work closely with them. This is particularly the case in Tasmania. Tasmanian Government's submission 1 Of the 32 small to medium organisations applying to Arts Tasmania for funding in 2015, 18 included Australia Council funding in their budgets totalling $2,095,595, highlighting the vulnerability of Tasmania's cultural sector to policy and funding changes. Whilst acknowledging the transfer of funds from the Australia Council to the National Programme for Excellence in the Arts (NPEA), it is noteworthy that the new fund is focussed primarily on projects (although including administrative support) rather than ongoing costs. This shift to focus on project based funding may undermine longer term planning for arts organisations and their partners. Recurrent funding is critical to long term planning and development. Such funding not only provides stability, but also provides the opportunity to leverage support from other sectors or partners, to plan larger and more complex projects and programs, to organise touring, support participation and to provide access for disadvantaged people or people with disabilities. It is significant to note that independent artists and small to medium organisations use public funding to create new work. They buy materials, hardware, technology and frequently outsource components of the work to tradespeople such as welders, cabinet-makers, plasterers, glass-workers and framers. They also buy packing materials, commission crate makers and freight companies to ship work. In addition to employing artists and art administrators, small to medium art organisations also contract work to designers, distributors, editors, printers, sound engineers, electricians and technicians to assist in the production of theatre, dance, exhibitions, concerts and community art projects. If the new NPEA results in a net funding decrease, or funding without the security of recurrent years, the most immediate outcome is likely to be reduced viability for a number of Tasmanian organisations . A consequent reduction in employment for artists and arts professionals could also be expected, and opportunities for cultural activities like performances, exhibitions, events and other creative outputs are also likely to decline. This instability may also discourage private sector support for the small to medium sector, as core costs have historically proven unattractive for sponsorship or philanthropic support. Noting that in Tasmania, this pool is small while the costs of undertaking endowment incentive activities are equal to elsewhere in Australia, making the need for stability to maintain existing private sector support vital to the Arts in Tasmania. As a result, Tasmania relies on public funding to provide career support and development for artists who in turn make vital contributions to social renewal, the economy and the tourism industry. For the sector to maintain vitality and growth there needs to be appropriate investment. In the industry it is often recognised that the small to medium sector of the arts is the essential growing ground for artists who can go on to have internationally significant careers as writers, visual artists, actors, directors, film- makers, dancers, and musicians. The small to medium sector is where all of those artists gain experience and make work that brings them to attention. It is where their reputations are made. This sector can provide the platform for their work of potential national significance to be realised. The small to medium arts sector is also where most new Australian work is made; from which almost every innovation in an art form arises. Many artists of great distinction make whole careers in this sector, not because their work is any less excellent than their fellow artists whose work is presented on main stages, but because their work differs in scale, substance and intention. A reduction in the number or size of small to medium arts organisations in Tasmania is likely to significantly reduce the opportunities for artists, and the diversity of cultural experiences available in the State. Tasmanian Government's submission 2 Impact on partner organisations Over time, the impact may also be felt by the presenting organisations and institutions in our State who source program material from the small to medium sector, both locally and nationally. Venues such as the Theatre Royal, Salamanca Arts Centre and Tasmanian Museum and Art Gallery in Hobart; and Princess Theatre, Queen Victoria Museum and Art Gallery in Launceston; and our events such as Tasmanian International Arts festival, MonaFoma and Dark MOFO, Junction Arts Festival and the Queenstown Heritage and Arts Festival, may see a reduction in work created in partnership with them or specifically for touring. Regional Access The work of the small to medium arts sector is often a more affordable and practical option for cultural activities in small and regional communities due to the flexible nature of its production and the relatively low costs of touring when compared to the work of larger producing companies. Given its relative isolation, Tasmania is particularly exposed to touring costs. There is a tension between the NPEA’s articulation of activities for regional and remote audiences, and its emphasis on the delivery of national outcomes. Australia is a diverse country with a broad population spread, and significant differences between audiences and their aspirations. Whilst acknowledging the desires of regional audiences to access the work of national organisations, it is equally important these communities are able to share work created outside the major population centres. Of concern, the draft guidelines for the NPEA appear to imply that established national organisations will be used to deliver works to regional areas, rather than directly funding local organisations. Tasmanians value and enjoy the opportunity to witness artistic activity that reflects the island’s own talent and unique voices. The combined impact of additional competition from large organisations and a reduction in funding support for local organisations is likely to reduce the diversity of, and participation in, the Tasmanian Arts sector. Peer Review We encourage the Commonwealth