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Government announces major investment in arts

Multiple releases and information pack on the $140 million Arts Package announced today by the Prime Minister....

Headlines:

Government announces major investment in arts, culture and heritage
Creative New Zealand
Museum of New Zealand Te Papa Tongarewa
New Zealand Symphony Orchestra
New Zealand Historic Places Trust (Pouhere Taonga)
The New Zealand Film Archive - Nga Kaitiaki O Nga Taonga Whitiahua
Royal New Zealand Ballet
Film Production Fund
Music Industry Commission
Christchurch Art Gallery
Edwin Fox Society
Ministry for Culture and Heritage
Broadcasting Commission (NZ On Air)

Details of the Arts, Culture, and Heritage Funding Announcement

Questions and Answers

18 May 2000
Government announces major investment in arts, culture and heritage

Prime Minister Helen Clark today announced a significant injection of funding into the arts, culture and heritage sector which, she said, will allow New Zealand's arts and culture to flourish and create jobs and growth in the industry.

Today's announcement sees an initial injection of over $80 million into the sector and then ongoing funding increases of over $20 million a year in each of the next three years. The announcement also includes a series of one-off payments to organisations such as the New Zealand Symphony Orchestra and the Historic Places Trust.

A major new initiative sees the establishment of a Film Production Fund. There will also be a Music Industry Commission established to support the growth of popular music.

Helen Clark said that the government was honouring an election commitment to increase public investment in the sector. She said the new funding would contribute towards enriching New Zealand's cultural framework while also creating employment and economic opportunities.

"A nation can be rich in every material sense, but, if it fails to provide for and nurture creative expression, it is impoverished in immeasurable ways. Our arts, our culture and our heritage define and strengthen us as a country, as communities and as individuals. This sector expresses our unique national identity.

"Our government has a vision of a vibrant arts, cultural and creative sector which all New Zealanders can enjoy. This sector can also provide sustainable and rewarding employment, and contribute a great deal to economic growth and prosperity.

"There will be considerable economic spin-offs from the significant investment we are making in the film and music industries. In addition, regional projects, such as the new Christchurch Art Gallery and the Edwin Fox restoration project in Picton, will provide an economic benefit to those regions. Heritage tourism is a major foreign exchange earner world wide.

"Today's announcement addresses not only the severe under-funding of the arts, culture and heritage sector in recent years. It also acknowledges the positive economic impact of investment in our creative industries," Helen Clark said.

The package includes:
 $20 million injection of funding into Creative New Zealand (the Arts Council of New Zealand).
 $22 million establishment grant to a new Film Production Fund.
 $2 million to establish a Music Industry Commission.
 An extra $7 million annual funding to NZ On Air, including $2 million for its music-related work, and $5 million for New Zealand TV programmes, especially children's TV. A cash injection of up to $27.909 million will be available to cover NZ On Air's shortfall this year after the last government's abrupt abolition of the Broadcasting Fee.
 A $3 million capital injection into the New Zealand Symphony Orchestra this year and an extra $1.4 million annually.
 An extra $2 million per annum operating funding for Te Papa and an extra $9 million per annum capital funding.
 A payment of $943,000 this year for the New Zealand Film Archive to extend its services.
 A cash injection of $760,000 this year into the Royal New Zealand Ballet to stabilise its finances.
 A $3 million cash injection this year for the New Zealand Historic Places Trust's new Preservation Fund, a Maori Heritage Development Fund, and enhancement of the Trust's national register. There is also a $170,000 budget increase this year, and an annual budget increase of $500,000 in following years.
 $6.474 million towards the development of the new Christchurch Art Gallery.
 $300,000 towards the restoration of the Picton-based historic ship, the Edwin Fox.
 The Ministry for Culture and Heritage's receives extra funding to enhance its ability to advise on cultural policy and to cover a range of transferred responsibilities.

18 May 2000
Creative New Zealand

Prime Minister and Minister for Arts, Culture and Heritage Helen Clark announced today that Creative New Zealand would receive an extra $20 million this financial year to allow it to enter into longer term funding arrangements with major arts organisations over the next three years.

Helen Clark said that Creative NZ's $20 million injection is equivalent to increasing its annual Vote by $6.33 million in each of the next three years.

"By receiving the amount in a single lump sum now, Creative NZ will be able to make longer term, multi-year commitments to key performing arts organisations, giving them unprecedented security of funding.

"Over the past few years, Creative NZ has faced increasing difficulty in attempting to meet its mandate to encourage, promote and support the arts in New Zealand for the benefit of all New Zealanders. Funding has remained static for many years, with the growing pressure on its funds meaning Creative NZ has only been able to provide approximately $1 for every $5 requested.

"New Zealand is fortunate to have many excellent performing arts organisations. They deserve the opportunity to plan with certainty. Also, the injection of funds will free up more of Creative NZ's ongoing funding for other arts projects."

Creative NZ is a Crown entity operating under the Arts Council of New Zealand Toi Aotearoa Act 1994, with the purpose of encouraging, promoting and supporting the arts in New Zealand for the benefit of all New Zealanders. The Act establishes an Arts Council and two arts boards.

The Council is responsible for overall policy development and determines the division of funding between the arts boards. The Arts Board supports the arts of all New Zealanders - including Pacific Island arts, for which a special subcommittee is established under the legislation - through the allocation of funding to specific arts projects, organisations and artists. Te Waka Toi is responsible for Maori arts.

18 May 2000
Museum of New Zealand Te Papa Tongarewa

Prime Minister and Minister for Arts, Culture and Heritage Helen Clark announced today that Te Papa's funding was increasing by $11 million a year - $2 million per annum for its operations and $9 million per annum as a capital contribution.

Helen Clark said the government recognised that Te Papa's previous level of funding had left the organisation on a knife edge in terms of its financial viability.

"The post-election briefing papers released in January highlighted the extent of Te Papa's financial woes. Today's announcement shows that the government views Te Papa's funding problems very seriously, and we have now moved to address the issues.

"The $2 million for operations is required to maintain the current level of Te Papa's services.

"The $9 million for new capital funding will be used for exhibitions development and renewal, and includes an annual $3 million acquisitions budget.

"The government wants Te Papa to be viable in every sense. That is why extra funding is being injected now," Helen Clark said.

18 May 2000
New Zealand Symphony Orchestra

Prime Minister and Minister for Arts, Culture and Heritage Helen Clark said today that the New Zealand Symphony Orchestra would receive an immediate capital injection to stabilise its finances, and an increase in annual operational funding to place the Orchestra on a sustainable footing.

Helen Clark said the NZSO would receive a one-off $3 million capital injection this year and an extra $1.4 million annually.

"The $3 million capital injection is a recovery measure, and will stabilise the NZSO's financial position following its move to new premises.

"Additional annual funding was also sought to ensure that the NZSO could continue performing at the quality and with the frequency that it has up until now.

"The Orchestra is at a point where, without additional funding, it would be forced to cut back its activities. Areas facing cuts included the New Zealand Chamber Orchestra and the NZSO's subscription concerts, which would have had to fall from 50 to 36.

"The NZSO has an international reputation for excellence. Providing the NZSO with the funding it requires will ensure that it can continue to perform throughout New Zealand at an international standard."

The NZSO is established as a limited liability Crown company and also as a Crown entity under the New Zealand Symphony Orchestra Act 1988 and the Public Finance Act 1989.

The NZSO Statement of Intent records that it aims to enrich the musical life of New Zealanders by presenting artistically excellent concerts, performed throughout the country and abroad by a full-time professional orchestra of international standing.


18 May 2000
New Zealand Historic Places Trust (Pouhere Taonga)

The New Zealand Historic Places Trust is to receive $3 million this financial year for the establishment of a Historic Places Preservation Fund, and an increase in its operational funding.

Prime Minister and Minister for Arts, Culture and Heritage Helen Clark said that additional resources were urgently required if the Historic Places Trust is to fulfil its statutory mandate to protect and preserve historic sites.

"Under the previous National government the Historic Places Trust was significantly under-funded and forced to go through a painful restructuring process.

"This ideologically-driven meddling brought the organisation to its knees and seriously damaged its ability to care for and preserve New Zealand's historic sites. The new government has halted the destruction and is now rebuilding the Historic Places Trust.

"Firstly, the $3 million capital injection will provide for the establishment of the new Preservation Fund. This Fund comprises $1.25 million for deferred maintenance and development projects at Crown-owned properties managed by the Trust. There is also $1.25 million to set up a Maori heritage development fund, and $500,000 to upgrade and enhance the national register of New Zealand's heritage.

"In addition, the Trust will receive a $170,000 operating budget increase this year, and an annual budget increase of $500,000 in following years. This is primarily to enhance the Trust's heritage protection activities. For example, the extra funding will allow it to fulfil its statutory obligations in terms of prosecuting cases where the Historic Places Act is breached.

"Today's announcement will provide the Historic Places Trust with the resources it needs to identify, protect, preserve and conserve the historical and cultural heritage of New Zealand," Helen Clark said.


18 May 2000
The New Zealand Film Archive - Nga Kaitiaki O Nga Taonga Whitiahua

The New Zealand Film Archive is to receive $943,000 this financial year for the establishment of a Film Archive Development Fund to allow it to extend its existing archiving services.

Prime Minister and Minister for Arts, Culture and Heritage Helen Clark said the new funding would enable the Film Archive to meets its objectives of collecting, preserving and providing access to New Zealand's moving image heritage.

"It is proposed that the collection services will include an active acquisition programme to secure videotape material at risk of deterioration and loss. The Film Archive also needs to be able to house and preserve its growing collection safely.

"It also needs to be able to improve its national public access programmes, including its Auckland branch, video access at regional museums, exhibition programmes and off-site screening.

"Without the additional funding, it is likely that essential heritage material would be lost or be unavailable to the public," Helen Clark said.

The New Zealand Film Archive is an independent charitable trust established in 1981 to preserve New Zealand's film history.

The Archive is housed in the 'Film Centre', purchased by the Archive in 1993 and opened to the public in August 1995. The Archive leases building space to a number of tenants including the New Zealand Film Commission and Rialto Cinemas.

The opening of the Film Centre was a significant achievement for the Archive, creating a single premises for the Archive and its collections, which were previously scattered amongst a number of different sites (although some material is still stored at other sites for safety reasons). It also allowed the public and researchers to have, for the first time, direct and ongoing access to the Archive's collections.


18 May 2000
Royal New Zealand Ballet

Prime Minister and Minister for Arts, Culture and Heritage Helen Clark announced today the provision of a one-off cash injection of $760,000 to the Royal New Zealand Ballet.

Helen Clark said the one-off payment would enable the Ballet to stabilise its financial position.

"Deficits over a number of years have eliminated the Company's working capital, resulting in it operating for a period of each year in overdraft. This has severely restricted the Ballet's operations and programming.

"While the Company has shown that it can operate within its existing budget over the last two years, improving its working capital will alleviate the need for expensive overdraft facilities and make it less exposed to the financial failure of a single season.

"It will also enhance sponsorship confidence and allow the Ballet, which is a superb ballet company of international standing, to flourish," Helen Clark said.

The Company was established in 1952 and is an independent trust incorporated under the Charitable Trusts Act 1957. It employs 32 dancers from New Zealand and around the world and is based in Wellington. It spends up to twenty weeks of the year touring throughout New Zealand and presents a mixture of classical and contemporary dance works.

It received public funding through Creative New Zealand until 1 July 1998, when it became directly funded through Vote Culture and Heritage. The RNZB’s baseline Vote funding is $3.195 million (GST inclusive).


18 May 2000
Film Production Fund

The government announced today it was contributing $22 million this financial year to enable the establishment of a Film Production Fund to boost the development of the New Zealand film industry.

Prime Minister and Minister for Arts, Culture and Heritage Helen Clark said the film industry was making a significant contribution to the New Zealand economy and export earnings, and had the potential to contribute even more.

"This new government investment is designed to boost jobs and opportunities in the industry.

"In recent years, we have seen the benefits in Wellington from Peter Jackson's Lord of the Rings production. Auckland too has a growing and successful film production industry. The government is committed to building on these successes, not only for the intrinsic cultural benefits from a thriving film industry, but also for the tangible economic benefits in terms of jobs.

"The government will invest $22 million in the establishment of the New Zealand Film Production Fund Trust which will oversee the Film Production Fund. The Trust will be an independent charitable trust, and it will work closely with the New Zealand Film Commission.

"The Fund will be able to attract further funding from other sources – including off-shore capital – and will be used to support films produced on a larger scale than those generally assisted by the Film Commission.

"Funding for these 'second tier' feature films will provide a bridge for film makers between the highly subsidised, low budget first films the Film Commission has traditionally backed and fully commercial productions. Films on this intermediate scale will allow filmmakers to develop and display their talent to the point that international commercial investors would be willing to finance future productions.

"Film has an important role in our cultural and economic development. But past limitations on the funding available to the New Zealand Film Commission means New Zealand hasn't yet tapped film's full potential. The establishment of this Fund is designed to attract more investment into film-making."

"For New Zealand to have a strong commercial film industry, we need a large talent base of experienced, successful producers, directors, writers, actors and production staff. The Film Fund will support the creation of this talent base, fostering jobs for many New Zealanders who would otherwise be forced to look for opportunities overseas," Helen Clark said.


18 May 2000
Music Industry Commission

The government is to contribute $2 million over five years to a newly established Music Industry Commission. This non-government body will support the development of contemporary New Zealand popular music.

Prime Minister and Minister for Arts, Culture and Heritage Helen Clark said the funding was an investment in the future of contemporary New Zealand music and would help to foster employment opportunities in the music industry.

"New Zealand's music industry has huge commercial potential. Our investment in the new Music Industry Commission will give the industry the backing it needs to increase the contribution of New Zealand music to the economy and to our foreign exchange earnings," Helen Clark said.

"The Commission is an initiative of the music industry. The previous National government made a belated promise to establish an industry forum just prior to last year's election. This government has worked closely with key music industry figures to create a new body to take the industry forward.

"The Commission's objectives include the fostering of New Zealand popular music composition, performance, recording and marketing. It will promote New Zealand popular music nationally and internationally. It will also create a forum for the popular music industry, act as an advocate for the industry, and play an educational role.

"Furthermore, the Commission will complement the activities of Creative New Zealand and NZ On Air in advancing the cause of NZ popular music.

"As a non-governmental body, the Commission will be accountable to government for the public money it receives. Its agreement with the government will emphasise the importance of the Commission also raising money from industry sources."

The Music Industry Commission will be governed by a Board of Trustees representing the broad range of interests in the popular music industry: broadcasting, record companies, artists, publishing, and educational interests. The Board will also represent Maori, Pacific Island and youth interests. The Trustees are to prepare a statement of intent and programme of activities to Government by 1 September 2000.

18 May 2000
Christchurch Art Gallery

Prime Minister and Minister for Arts, Culture and Heritage Helen Clark announced today that the government would contribute $6.474 million towards the new Christchurch Art Gallery.

She said that the new gallery would be a major arts and economic asset for Canterbury and would contribute directly to tourism earnings in the region.

Helen Clark said the $6.474 million had been allocated in accordance with the existing Policy for Government Assistance towards Capital Projects at Regional Museums.

"Christchurch Art Gallery meets all of the criteria for consideration under the policy, including national significance of collections, accessibility, attendance numbers, and scale of the institution.

"In my view, the gallery's collection and standard of display is simply outstanding and a national treasure.

"The new gallery also meets the criteria in terms of operational performance, professional support, ongoing viability, architectural significance, and local support.

"The government's contribution represents 13 per cent of the overall cost of the project. This is warranted on the basis of the importance of Christchurch Art Gallery's permanent collections, the benefit to the public from the improved access to the collections, and the improved storage conditions.

"The new purpose-built art gallery is being constructed in Christchurch to house the city’s art collection currently held in the Robert McDougall Art Gallery.

"The existing premises for the Robert McDougall Gallery have long been recognised as inadequate. The new Gallery building will provide a state of the art facility to accommodate, care for and present the city’s collections as well as exhibitions from around New Zealand and overseas."

The bulk of the project’s $53.432 million (GST inclusive) cost is being covered by the Christchurch City Council with additional funds coming from community fundraising. The Gallery is scheduled to open in March 2003.

18 May 2000
Edwin Fox Society

Prime Minister and Minister for Arts, Culture and Heritage Helen Clark today announced that the government would contribute $300,000 this year towards the restoration of the Picton-based historic sailing ship, the Edwin Fox.

Helen Clark said that the Edwin Fox is of huge historic significance and when restored and presented has the potential to greatly enhance the attraction of Picton as a tourism destination.

"The sailing ship Edwin Fox has been given a Category 1 Registration by the New Zealand Historic Places Trust in recognition of the ship’s heritage significance.

"It was built in India in 1853. It is the only surviving wooden troopship that served in the Crimean War in 1854, the only surviving wooden convict ship to Australia,1858, and the only surviving wooden immigrant ship to New Zealand, 1873.

"The Edwin Fox Society was formed to conserve the remains of the ship on the Picton foreshore. A graving dock has been constructed to meet short-term conservation needs. Now a roof needs to be built over the dock to prevent the damaging effects of rain and sun on the timbers of the ship.

"The Government’s grant helps meet the cost of this project and ensure the long-term conservation of the Edwin Fox," Helen Clark said.

Helen Clark will be visiting the Edwin Fox on Saturday to meet the restoration team and discuss the project.

18 May 2000
Ministry for Culture and Heritage

The Ministry for Culture and Heritage is to take over responsibility for a range of heritage functions, including the Dictionary of New Zealand biography and the management of national memorials, from the Department of Internal Affairs.

Prime Minister and Minister for Arts, Culture and Heritage Helen Clark said that the Ministry would receive a combination of new and transferred funding to cover its new areas of responsibility. Its annual budget would increase from around $1.74 million to approximately $5 million.

"The largest component of the funding is the annual $2.4 million that the Ministry will receive to manage history and heritage activities, which were previously part of the Department of Internal Affairs. The funding is being transferred from Internal Affairs to the Ministry.

"Other areas that will receive funding include the Ministry's work on broadcasting policy and new policy development The collection of cultural statistics is also being transferred to the Ministry from the Science Envelope Departmental Contestable Research Pool.

"This year the Ministry receives an extra $80,000 for advice on broadcasting policy and another $400,000 next year. The Ministry also receives an extra $600,000 to enhance its ability to advise on cultural policy.

"Altogether the changes at the Ministry will ensure that it receives a fair level of resources in relation to the work it is required to do. Furthermore, it will also provide for the establishment of both a strategic policy capacity and an adequate Maori responsiveness strategy within the Ministry.

"With this structural change, the Ministry will take on the shape initially envisaged for it when the previous Labour Government committed itself to creating it in 1990," said Helen Clark.

18 May 2000
Broadcasting Commission (NZ On Air)

The government today announced that it is providing NZ On Air with an immediate cash injection of up to $27.9 million to make-up for a cash shortfall stemming from the previous government's sudden decision to abolish the Broadcasting Fee.

In addition, NZ On Air will receive an extra $7 million annually in operating funding over and above its previous budget baseline.

"This will enable more local content on radio and television, and honours another election pledge," Prime Minister and Minister for Arts, Culture and Heritage Helen Clark said

Helen Clark said today that NZ On Air had been left in a parlous fiscal position as a result of the National's government abrupt abolition of the Broadcasting Fee and its failure to provide adequate replacement funding.

"Unfortunately many New Zealanders had stopped paying the Fee prior to its final phase out, leaving New Zealand ON Air well short of its normal revenue collection.

"NZ On Air has advised the government that it is unable to collect a significant proportion of the outstanding and remaining payments of the Broadcasting Fee.

"Loss of this income has had a significant effect on NZ On Air's ability to meet its funding commitments entered into prior to the decision to abolish the Fee. The cash injection will ensure that NZ On Air is not disadvantaged by that decision of the previous government.

"The government has also decided to increase the operating budget by $7 million a year over and above the past full income of NZ On Air. Two million dollars of this will be directed towards NZ On Air's music-related work, and $5 million each year for New Zealand TV programmes, especially children's TV.

"Our new government has consistently said that it will support both New Zealand music and New Zealand children's television programmes. Today's funding announcement honours those commitments," Helen Clark said.


Details of the Arts, Culture, and Heritage Funding Announcement


NOTE: All figures GST inclusive.

Creative New Zealand

Extra funding: $20 million operating funding in 99/00 year.

This will create a ‘stabilisation fund’, which will enable Creative New Zealand to commit to enhanced, multi-year contracts with key performing arts organisations. It will also free up other funding for use in each of the next three years, enabling Creative New Zealand to fund a range of other arts projects.

Te Papa

Extra funding: $2 million operating funding in 00/01 and ongoing
$9 million capital contribution in 00/01 and ongoing

The increased operating funding will enable Te Papa to maintain its operations at the current level.

The increased capital funding will be used for exhibitions development and renewal; and will enable an acquisitions budget of $3 million per annum.

The previous Government stipulated that Te Papa would provide a certain level of service, but did not fund that level of service. The extra funding honours the agreement made with Te Papa.

New Zealand Symphony Orchestra

Extra funding: $3 million capital contribution in 99/00
$1.4 million operating funding in 00/01 and ongoing

The capital injection is a recovery measure, and will stabilise the financial position of the New Zealand Symphony Orchestra following its move to new premises.

The increased operating funding will enable the Orchestra to continue operating as a national, touring orchestra at current levels. It will also fund an enhanced education programme.

NZ On Air

Extra funding: Up to $27.909 million capital contribution in 99/00

$7 million operating funding in 00/01 and ongoing

The capital injection will enable NZ On Air to meet funding commitments entered into prior to the decision to abolish the Broadcasting Fee. It ensures that NZ On Air is not disadvantaged by the decision taken by the previous Government. The ongoing operating funding will be directed towards the support of New Zealand music ($2 million), radio, and television programmes ($5 million).

New Zealand Historic Places Trust

Extra funding: $3 million capital contribution in 99/00

$0.170 million operating in 99/00

$0.5 million operating in 00/01 and following

The $3 million capital injection will enable the establishment of a Historic Places Preservation Fund. It will comprise $1.25 million for deferred maintenance and development projects at Crown-owned properties managed by the Trust; $1.25 million to set up a Maori heritage development fund; and $.5 million to upgrade and enhance the national Register of New Zealand’s heritage.

The additional operating funding will enhance the Trust’s heritage protection activities nationwide.

New Zealand Film Archive

Extra funding: $0.943 million payment in 99/00

This will enable the establishment of a Film Archive Development Fund, which the Archive will utilise to meet collection, preservation and projection goals over the next three years.

Royal New Zealand Ballet

Extra funding: $0.76 million payment in 99/00

This will enable the Ballet to stabilise its working capital position.

Film Production Fund

Extra funding: $22 million establishment payment in 99/00 year.

This funding will enable the creation of a non-government Film Production Fund, which will attract further funding from other sources – including off-shore capital. The Fund will be used to support ‘bigger’ films than those generally assisted by the New Zealand Film Commission, and will give our film-makers international experience and exposure. The aim is to grow the New Zealand film industry.

Music Industry Commission

New funding: $2 million establishment payment in 99/00

This non-government body will support the development of contemporary New Zealand popular music. Its objectives will include lifting the earnings in the industry; and creating greater exposure and awareness of New Zealand popular music.

Christchurch Art Gallery

New funding: $6.474 million payment in 99/00

This is a contribution towards the development of the new Christchurch Art Gallery, and recognises the significance of the institution and its collections to our national culture.

Edwin Fox Restoration

New funding: $0.3 million payment in 99/00

This is a contribution towards the restoration project, and recognises the very great historical significance of the vessel.

Ministry for Culture and Heritage

New funding: $80,000 in 99/00 for broadcasting policy work

$0.4 million in 00/01 only for broadcasting policy work

$0.6 million in 00/01 and ongoing for new policy development

Transferred Funding: $0.259 million in 2000/01 and $0.529 million in 2001/02 for cultural statistics

$2.4 million in 00/01 and following for heritage activities

The cultural statistics funding is from the Science Envelope Departmental Contestable Research Pool.

The heritage funding supports activities currently undertaken by the Heritage Group of the Department of Internal Affairs. These activities, which include producing the Dictionary of New Zealand Biography and managing national memorials, are now to be undertaken by the Ministry for Culture and Heritage; and the associated funding will transfer with them.
Questions and Answers


What organisations are receiving support through this package?

The details of the package announced by the Government are provided on the separate summary sheet entitled Details of the Arts, Culture and Heritage Announcement.


What economic benefits will result from this investment?

Our creative industries can make a significant contribution, not only to our social well-being, but also to our economic well-being. Employment in the cultural sector is significant and growing more rapidly than in many other sectors. It is estimated that the cultural sector contributes approximately $4 billion per annum to New Zealand’s GDP. The cultural sector has the potential to be among the key growth industries of the 21st century. World wide, there is huge growth in the service sector around industries based on creative talent, such as in design, architecture, fashion, new media, and the internet.

This package will build on the already significant contribution that the creative and heritage sector makes to the New Zealand economy. Te Papa has boosted the Wellington economy. Regional initiatives, such as the new Christchurch Art Gallery and the Edwin Fox restoration in Picton, can have a large, positive impact on regional economies through increasing regional tourism and foreign exchange earnings.

The film industry, as the Lord of the Rings project is proving, can be a major creator of new jobs and opportunities. The new government investment in the film industry has huge potential to boost jobs and opportunities in the industry, and make a significant contribution to the New Zealand economy and export earnings. From the Music Industry Commission's industry leadership, more jobs, opportunity and export earnings from popular music are expected.

This package also gives much greater security of funding to major arts organisations, which in turn will give greater security of employment to those working in these organisations.


Why is the Government creating a Film Production Fund, instead of just giving more funding to the New Zealand Film Commission?

The establishment of a separate Fund allows the more commercial side of the development of the New Zealand film industry to be undertaken by a specialist organisation, made up of individuals with the specific skills and experience needed to do this. The separate Fund limits the Government’s exposure to the risks inherent in financing commercial films.

A separate organisation will not be constrained, as the NZFC is, by the need to balance commercial and cultural imperatives. It can focus purely on the commercial objectives, and allow the NZFC to retain and consolidate its focus on the developmental and cultural imperatives within its legislated mandate.

A defined fund in a separate entity will also facilitate securing offshore debt by leveraging a committed source of funding that is not subject to changes in government, budget allocations or NZFC policies.


What are the particular objectives of the Fund?

The objective of the Fund is to allow New Zealand film-makers to produce second and subsequent films with larger budgets and higher screen value. Such funding will provide a bridge between fully subsidised, low budget first films and fully commercial productions. Films on this scale will allow film-makers to develop and display their talent to the point that international commercial investors would be willing to finance future productions.

A larger investment fund also allows the development of the domestic market and encourages New Zealand support for New Zealand films. As well as helping to develop an international film industry, a strong domestic environment is necessary for non-commercial, cultural objectives.


Why is it being given all its funding at once?

Providing Government funding to the organisation up front, rather than over a period of years, or on a project by project basis, is desirable for a number of reasons. Firstly, it emphatically shows that the Government is irrevocably committed to this level of additional support for New Zealand film. It also sends a very clear message to film-makers that there is a substantial pool of funding available for investment in appropriate films, and encourages project development. Importantly, providing the funds up
front also allows the Fund to benefit from interest earned from investment of the Government funds. In order to meet the proposed target of $50 million of production investment, a proportion of this will need to be raised through capital investment earnings.


When can it be expected that there will be results from the establishment of the Fund?

The Fund will support the making of bigger budget movies over the next three to five years. The availability of funding will encourage film-makers to advance proposals.


How can we be sure the Fund will pick winners?

We can’t guarantee that each and every film supported by the Fund will be a success. But its operation requires the involvement of overseas lenders, experienced in the film business, who will invest funds only on the assurance of advance sales. This will ensure that likely winners are picked – and when winners are picked, the returns will be significant.


What is the extra funding for Creative New Zealand intended for?

Creative New Zealand is an independent statutory body. The Government does not dictate to it the detail of how it spends its funding.

Creative New Zealand’s clients make a contribution to our nation’s cultural life that is very highly valued by this Government. For instance, Auckland would be much the poorer without the presence of the Auckland Philharmonia. Creative New Zealand has made a strong case to Government about the need to provide greater security of funding to our key performing arts agencies.

The Government has clear expectations that the big performing arts agencies will be a focus for expenditure. For the first time, Creative New Zealand will be able to enter into multi-year funding commitments with these agencies.

The Government is making the $20 million extra available now in the expectation that securing the financial positions of some of the big organisations immediately will free up money from Creative NZ's existing funding sources for a range of smaller arts projects.


Why is more money being given to Te Papa, when the Te Papa review is still taking place?

The previous Government stipulated that Te Papa would provide a certain level of service. It did not, however, provide the funding that would support that level of service. The funding being announced today enables Te Papa to maintain its current level of operation. The costs are now largely unavoidable.

This new funding will also enable Te Papa to set aside $3 million each year for new acquisitions. This extra acquisitions funding is highly appropriate for a national institution - and overdue.

The Te Papa review is quite separate from the funding decision being announced today. The review is investigating some particular aspects of the museum’s operation, in light of concerns that have been expressed.

The Government will consider the findings of the review, and determine if there are matters that it would wish the board of Te Papa to address in the further development of the museum. These matters would appropriately be conveyed during the process of developing the organisation’s Statement of Intent.


What is the extra funding for the New Zealand Symphony Orchestra intended to achieve?

The extra operational funding will enable the New Zealand Symphony Orchestra to undertake more education activities, but the money is primarily intended to allow it to continue its current level of operation.

This Government is proud that New Zealand has an extremely high quality national orchestra. We believe the orchestra should tour to regional centres so that it is accessible to New Zealanders. The Government accepts that there is a significant cost to these activities.


Why is the Government involved in the establishment of a Music Industry Commission?

The Government is willing to help foster a wide range of cultural activities. It considers that contemporary New Zealand music has significant commercial potential.

A range of agencies and individuals are involved in the creation of this organisation, which will be a non-governmental body. This initiative will provide the means for the key players in this industry to work together effectively to boost this important sector.

The Commission’s objectives include the fostering of New Zealand’s popular music composition, performance, recording and marketing; the creation of a forum for all stakeholders in the contemporary New Zealand popular music industry; developing and promoting New Zealand popular music nationally and internationally; advocating for the industry; and playing an educational role.


Why is this funding being announced before Heart of the Nation is completed?

Heart of the Nation is about assisting the arts, cultural and heritage sector to develop a strategic plan for its future. The funding announced today indicates the way that the Government will involve itself in the sector over the next several years, and does not depend on completion of Heart of the Nation.

But the Government has an ongoing interest in arts, culture and heritage. It does not intend to announce funding now, and then forget about the sector. In the longer term, as the sector sets about implementing its own strategy, the Heart of the Nation project might generate particular proposals to Government, and the Government will be pleased to give them consideration.


What is the effect of this announcement on the Ministry for Culture and Heritage?

The Ministry will have a greater capacity to provide policy advice to Government on a range of cultural issues. It will be able to give particular and immediate attention to a range of matters associated with the cultural aspects of broadcasting.

The Ministry is also taking over responsibility for a range of heritage functions previously undertaken by the Department of Internal Affairs. These include the production of the Dictionary of New Zealand Biography, and the management of national memorials. Around 20 staff will transfer.

These changes mean that the Ministry for Culture and Heritage will at last look something like the organisation that was originally envisaged when, ten years ago, the then Labour Government took steps to establish the Ministry. The Ministry will now have a total staff of around 50 people, comparable to a number of other government ministries.

ENDS

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