Introduction The development of a vibrant, creative and sustainable portfolio of arts organisations is one of the core strategic priorities of the Arts Council of Wales. If people across Wales are to have the opportunity to experience and participate in the arts it is essential that there are providers able to deliver this aspiration to a high standard. This paper has been produced to provide an overview of the initial elements of the review undertaken by ACW of its portfolio of revenue-funded organisations. It is important to state at the outset that ACW believes that there is a strong case for greatly increased funding for the arts in Wales, and that the existing and projected levels are not sufficient to properly support artists and arts organisations who are currently funded, nor to enable new work to come forward. The review of the portfolio will help to ensure that the available funding is most effectively targeted, but cannot address all requirements for enhanced funding, and the Arts Council will vigorously advocate for further investment in the arts, and will explore all available avenues to obtain such funding. The case for further funding has been reinforced by the reviews recently undertaken by the National Assembly Culture Committee into dance and the role of art in community regeneration, and by reviews undertaken by ACW itself such as the report on English language theatre. The subsequently announced increased investment with funds from the Welsh Assembly Government in dance and community arts, while very welcome, is not of itself adequate to address the needs identified. Consequently, the need to engage in an ongoing exercise of prioritisation in a strategic artistic context is reinforced. Background to the review The many years of reduced regular funding for the arts prior to devolution had two key impacts. The first was that regularly funded bodies were often fragile financially, and had restricted artistic output because of many years of real term cuts. Separately, a new element of the arts sector had grown and flourished with funding from the National Lottery. However, this sector, including many community arts organisations, did not have a sustainable future without access to long term funding. Since devolution, there has been a very substantial increase in revenue funding for the arts from the Welsh Assembly Government. This has enabled much progress to be made in stabilising and enhancing the funding to our clients, and in starting to tackle the legacy of problems which had developed. In addressing these problems, ACW undertook a major process of change which included creating revenue funding agreements for clients setting out the purposes for which funding was provided and the expectations attached to it. Certain sectors were completely reformed and put on a secure footing, including theatre in education. New organisations were accepted as clients, particularly community arts organisations which formerly relied on the Lottery. Gaps in provision were identified and filled e.g. Theatr Genedlaethol, The Riverfront in Newport and Galeri in Caernarfon. In addition, the Lottery funded Sustainability Programme was introduced, and organisations such as WNO, and more recently Chapter, have been helped to clear their debts and re-engineer their businesses in order to better enable them to meet the challenges of the future. As this illustrates, ACW has been engaged in a continual process of review and this is informed by the annual reviews which now take place of each revenue client. However, in the last two years, ACW has worked to formalise this process within the context of the evolving strategic framework for the arts in Wales and the potentially diminishing resources available for revenue grants. In April 2005, the Council agreed a detailed timetable for the current phase of the review, which has culminated in decisions taken in setting a budget for 2006/7. The work included: <sum> the refinement of artform and cross-sector strategies; <sum> consultation with funding partners, e.g. Local Authorities, and <sum> the preparation of a set of thorough and coherent proposals for Council to consider. A Portfolio Review Project Group was set up with the following terms of reference: To lead on the development and co-ordination of the Portfolio Review process and to prepare a series of scenarios for Council to implement for 2006/07 financial year. Subsequently, all revenue-funded organisations received a letter explaining the rationale and process. Senior officers refined the strategies within their specialist areas and made proposals for funding priorities. Annual review meetings were held with RFO’s which took account of the review process, and their outcomes were fed into the group. A range of scenarios were prepared which allowed Council to consider the amount of savings which might be needed to enable reinvestment within strategic priorities. The Council in determining its budget priorities for 2006/7 took the results of this work into account. Some of the key components are addressed below. It is most important to note that the exercise did not conclude that there were significant numbers of organisations which were either failing artistically or not of strategic significance. Many organisations form part of strategic networks designed to give all-Wales coverage including the Regional Performing Arts Centres, Theatre in Education companies and regional galleries. Others are part of all Wales provision, such as the National Youth arts companies, Welsh National Opera and Diversions Dance. Work with these strategically significant organisations is primarily concerned with sustaining and developing their artistic output and promoting enhanced access to their work. Mergers One of the key approaches to be adopted as part of the review of the portfolio is the encouragement of mergers designed to secure a more sustainable future for the work of the organisations involved, and a redirection of resource from administration into output. The first successful merger has already taken place. This brought together the three arts marketing agencies for South and West Wales. The new body received increased support both from ACW and from local authorities. The changes have led to a redirection of an estimated £45,000 into marketing activity, and have ensured that arts marketing in the Valleys has been saved. This new agency plays a key role in promoting access to the arts. The second merger being pursued is intended to bring together the two public art agencies for Wales. Their work is complementary, although there is inevitably some element of overlap and more worryingly, competition. The proposed merger will again secure future provision and allow resource to be focused on programme rather than administration. The third major merger is between two theatre companies, the Sherman and Sgript Cymru. This is designed to ensure that there is a company which can operate on a scale appropriate to the soon to be redeveloped Sherman Theatre, and offer theatre production on a larger scale for South East Wales. The two companies differ in their work, but are complementary. As with public art, no cash saving is envisaged and indeed, further investment will be needed in the future, and has been in part factored into budgets. The new company will provide more productions both in the Sherman and touring around Wales and will meet one of the core recommendations of the Review of English Language Theatre. Film The changed arrangements for the support of creative industries have led to a major review of the support for film. This review was undertaken in parallel with colleagues from the WDA. The outcome has been a decision to wind up Sgrin, whose functions were not compatible with the change proposals. A new agency is being established – Ffilm Wales – which will be tasked with supporting production, exhibition and education. The new arrangements are leading to a major re-alignment of Welsh Assembly Government and Lottery funding. Organisations receiving enhanced funding As part of the overall review, 42 organisations will receive enhanced funding. These include the regional performing arts centres which have been identified for uplift as part of the Arts Outside Cardiff Strategy and community arts organisations who are being targeted with funding both from Welsh Assembly Government and European sources. In addition, Ty Newydd, the writers’ centre, will receive an uplift to enable it to function effectively when it re-opens after a major capital re-development. Ty Newydd is a key element of the Council’s literature strategy. Organisations which received notice of restructured funding The review concluded that one organisation, Broli Cymraeg, was no longer delivering the activity for which it was funded. Its funding has now ceased, while that of the Penrhys Partnership Trust which is more suited to project funding has been switched to the Lottery. A further tranche of 15 organisations were deemed not to be of core strategic significance. These organisations will receive one year’s notice of an end to their revenue funding, but will be encouraged to apply for Lottery grants. These organisations all receive less than £20,000 per year. Many already receive Lottery grants, and they will all be eligible to apply for project funding. In practice, much of their work is project based, and there will be an element of rationalisation of processing, leading to reduced administration for the clients and for ACW. Where applications are successful, it is our intention to offer three-year funding. This approach is consistent with that adopted by Arts Council Northern Ireland. The decision to withdraw revenue funding is not a comment on the quality of the work of the clients concerned, but a reflection of their strategic artistic significance. Inflationary increases 65 organisations, will receive an increase to take account of inflation of 2.72%. This includes the six clients previously scheduled to receive funding directly from the Welsh Assembly Government. These organisations have been deemed to be of strategic importance, and either performing well or needing intervention or further funding to improve their performance. It is recognised that organisations of strategic significance where there are performance issues (and there are very few of these) will be unlikely to improve if starved of resources. These increases are being funded by the £240,000 originally ring-fenced for the six “national” clients and by cuts in other budgets, including the sum originally earmarked for the creation of a national Theatre in Education agency. Future increases The Council has committed to finding further resources to uplift the grants of Ffotogallery, Oriel Mostyn and Ruithin Craft Gallery in future years. These uplifts will enable the galleries concerned to take advantage of the additional facilities being provided through capital schemes. In every instance, education and access work will be extended, and the Ffotogallery scheme in particular will ensure that historic low levels of investment in Neath Port Talbot are addressed. New clients The Council has sought to reduce the overall number of revenue clients in its portfolio in response to the anticipated lack of funding for increases, other than in specific areas. However, there are a small number of clients the Council would wish to offer revenue support to in the future, should further savings prove possible over and above those needed to sustain the smaller portfolio of strategically important clients. Foremost amongst these are No Fit State Circus, which is currently project funded, community arts organisations to cover deprived communities where there is no current provision and chamber orchestras. Next steps Having concluded the current stage of the review, which focused on some of those bodies in receipt of very low levels of revenue funding, the Council has asked staff to come forward with proposals for a review of those bodies whose principal purpose is not the provision of direct arts output. In light of this request, the bodies concerned were not offered a three-year funding agreement, but rather one for one year. This is to allow the outcomes of the review to be taken into account in setting long term funding objectives. The process of review has not yet been determined, and will form the subject of a consultation. The review is expected to conclude by the end of November 2006, to allow the outcome to be taken into account in developing funding agreements for 2007/8. This review is designed to establish if the current funding arrangements to organisations, which provide support services to the arts sector, are the most appropriate and effective means of doing so, or whether there are changes possible which would enhance the support offered to clients, or which could free some funding for direct arts provision. It is apposite to note that the current pattern is partly at least the result of historical factors, rather than a considered view on the best way of meeting the needs of the sector. There is no pre-conceived outcome to the review, and a no change option will be considered. The review will extend to support services provided by bodies which are also direct providers and by bodies funded through Lottery rather than Grant in Aid. It is expected that the review will look in particular at synergies and areas of overlap. The possibility of closer working arrangements, or mergers, will be taken into account. There is no presumption that the sectors supported by the bodies concerned will not have support in the future. Consultation Consultation on the terms of reference for the review will take place with the bodies concerned, with the Umbrella Bodies Group, with local authorities and with the Welsh Assembly Government. It is expected that comments will also be sought on the possible outcomes. The revenue funding agreements, the annual review and the annual survey will be key data sources for the analysis. . |
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Wednesday, March 22, 2006 |
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