Written - A Review of investments by the Arts Council of Wales

The Arts Council of Wales (ACW) has today announced the outcomes of a strategic Investment Review.  There is, from 2011-12, to be a concentration of its resources on fewer arts bodies.  As a result, a number of arts bodies will no longer receive revenue funding to cover the annual costs of their operations.  This is necessary to secure a vibrant and durable arts sector.  Organisations who have today learnt that they will no longer receive revenue funding from ACW from the next financial year may be eligible for Lottery funding for specific projects.  They might also be able to apply for transitional funding to help them make the changes necessary to manage the change in funding arrangements.  The decisions have taken place within the context of a more fundamental review of funding policy, the most extensive ACW has ever undertaken.

Assembly Members are aware that the bulk of Welsh Assembly Government’s funding for the arts is channelled through ACW, working within a strategic framework agreed with the Government.  Since 2007, this framework, along with the implementation of our One Wales arts commitments, has been overseen by the Arts Strategy Board (ASB).  ASB was set up after the review of the arts in Wales, chaired by Professor Elan Closs Stephens.

The Investment Review arose from a concern among many in the arts community, which my predecessor and I shared, about public funding for the arts.  The central concern was that the historic pattern of revenue funding for just under 100 arts organisations was failing to optimise the contribution to Welsh life and, indeed, to the Welsh economy, associated with the public funding devoted to this sector.  As ACW’s vision statement, “Imagine”, notes, we need to secure for Wales an artistically vibrant, financially durable sector.  ACW have therefore had to make some very painful decisions, in line with my remit to them to be robust in their assessment of the effectiveness of existing investments.

The review was conducted on the basis of a wide-ranging, countrywide, consultation exercise with arts organisations over summer 2009.  Eligible arts organisations were then required to submit business plans to ACW by noon on 14 December, justifying their entitlement to support and indicating the level of funding needed to implement their plans.  I acknowledge the tremendous amount of work by the 116 organisations who submitted plans by the deadline.

I have been briefed by ACW on the review at key stages, and I am grateful to Professor Dai Smith, the Chair, and Nick Capaldi, Chief Executive, as well as to all ACW board members and staff, for the rigour, sensitivity and openness with which I believe they have conducted this review.  They have not taken their responsibility lightly, and they have striven to keep the sector informed about the purpose and outcomes of the review.  An appeals process has been established for any unsuccessful companies who might be unhappy with the conduct of the review.  Assembly Members had the opportunity to attend a breakfast briefing session, held by ACW on 19 May.

The review is a process conceived by ACW, based on existing financial allocations to the Council, taking into account its responsibility to ensure that the arts sector in Wales delivers optimal value for money.  ACW are aware that the situation on public finances may require them to revisit their initial decisions, should any reduction to their overall grant in aid take place.

The review requires ACW to acknowledge and address areas of weakness in our arts provision, to continue to develop the arts in Wales across all artforms, and to work with its core clientele of arts organisations to ensure that these companies are supported to give of their best.  I continue to be heartened and impressed by the high quality of the work I see across Wales on a weekly basis, from the productions being staged by our theatre companies, in English and Welsh; to the contemporary art on display at our emerging network of highly-rated galleries; to the work of smaller companies, many of them depending heavily on the goodwill of volunteers and highly-skilled staff working at times for very low salaries.  We now have artists, including our national companies, who are invited to perform across the world, as well as organisations who provide a focus of smaller communities across Wales.  We have dancers, singers, storytellers, and craftspeople whose work is shown in our galleries and performance venues, as well as in China, the USA and elsewhere. Protecting, advocating for and nurturing activities such as these is the reason why ACW has acted now, with a remit to take bold decisions that will keep the arts vibrant and strong during the difficult years.