Department of State Development, $683,049,000

Administered Items for the Department of State Development, $13,911,000

Membership:

Mr Gardner substituted for Mr Knoll.

Ms Redmond substituted for Mr Whetstone.

Minister:

Hon. J.J. Snelling, Minister for Health, Minister for The Arts, Minister for Health Industries.

Departmental Advisers:

Ms A. Reid, Deputy Chief Executive, Department of State Development.

Mr P. Louca, Executive Director, Arts South Australia, Department of State Development.

Mr J. Andary, Director, Arts Industry and Finance, Arts South Australia, Department of State Development.

Ms J. Layther, Director, Arts Programs, Organisations and Initiatives, Arts South Australia, Department of State Development.

Ms H. Schultz, Director, Cultural Heritage and Assets, Arts South Australia, Department of State Development.

Ms S. McDonnell, Ministerial Adviser.

The CHAIR: The estimate of payments for the Department of State Development and administered items for the Department of State Development are open for examination, and I refer members to portfolio statement 4. I call on the minister to make a statement if he wishes and to introduce his advisers.

The Hon. J.J. SNELLING: The last year has been an incredibly busy and rewarding year for the arts sector. The sector is still reeling from the decision of the then arts minister Senator Brandis' decision in 2015, to move millions of dollars of funding from the Australia Council to his own discretionary fund, Catalyst. This has had a dramatic impact on several of our performing arts companies. As a result of my intervention, and that of Arts South Australia, and redirecting state funding to those affected, we have not only prevented those companies from folding but we have seen them continue to produce new and innovative art.

As state minister, I am committed to ensuring the additional funding to the small to medium sector remains in place for the next triennial funding round. That means more resources for those companies and independent artists. The Adelaide Festival has returned to its zenith, the Adelaide Fringe continues its remarkable growth and popularity, the Cabaret Festival, Oz Asia and SALA Festival are proof positive that with the right level of state government support and collaboration with extraordinarily talented individuals and organisations much can be achieved.

The Art Gallery, Museum, JamFactory, Carclew, State Library, Film Corporation, History Trust, Adelaide Symphony Orchestra and Country Arts Trust, to mention a few, go from strength to strength. Through the Made in Adelaide program, artists, festivals and organisations have the platform they need to boost their presence interstate and overseas and grow opportunity for more audiences, more investment and development, and more recognition of the great work being created right here. If last week's Helpmann Awards are anything to go by, the incredible haul of nominations and awards to locally produced and staged work demonstrates that success.

The redevelopment of the Adelaide Festival Centre fulfils my top infrastructure priority for the local sector, and that is now the imminent return of the old dame, Her Majesty's Theatre, to join the best medium-sized theatres in the nation. That is great for audiences and a boon for the visitation economy. We have increased funding to record levels and, for the third consecutive year, prevented the arts budget from being cut. Of course there is always more we can do, and I will continue to work closely with the sector to make changes and build on the reputation of excellence for which South Australia is renowned.

The CHAIR: Your advisers, minister?

The Hon. J.J. SNELLING: I introduce Alex Reid, Deputy Chief Executive, Department of State Development; Mr Peter Louca, Executive Director, Arts South Australia; and Mr Jeff Andary, Director, Arts Industry and Finance.

The CHAIR: Any questions or a statement from you, member for Morialta?

Mr GARDNER: I do not have a statement. I refer to Budget Paper 3 to start with, page 24, Her Majesty's Theatre. I do not imagine you will need to go too much to the papers, but what is the need for the increase in funding or, rather, what is the scope of the increased project for Her Majesty's Theatre becoming $66 million? Has there been an adjustment to the fundraising target that was last year identified as $3.2 million?

The Hon. J.J. SNELLING: I think the previous commitment the government gave in last year's budget to Her Majesty's Theatre was never to cover the full cost of the project: it was a contribution towards it. That then enabled the Adelaide Festival Centre Trust to fully scope the project and come back to government. The government decided to seek a way to ensure that the project was able to proceed as quickly as possible.

In the arrangement we have with the Adelaide Festival Centre Trust, we have shifted the asset. The asset shifts from being held by the Minister for The Arts to being held by the Festival Centre Trust itself, and state Treasury is loaning the Festival Centre Trust the money largely to enable the completion of the project. The Festival Centre Trust still has the $3.2 million fundraising target to go towards the project.

Mr GARDNER: As a result of that transfer of the project or the land from Arts SA—

The Hon. J.J. SNELLING: Of the building, basically.

Mr GARDNER: —of the building from Arts SA to the Adelaide Festival Centre Trust—

The Hon. J.J. SNELLING: From the Minister for The Arts, yes.

Mr GARDNER: —it is constructed as a loan rather than as a grant and therefore does not impact the budget bottom line?

The Hon. J.J. SNELLING: That is right: it is a loan and it has to be paid back. The debt has to be serviced, sorry.

Mr GARDNER: What is the nature of that servicing arrangement?

The Hon. J.J. SNELLING: We are adding to the annual grant provided to the Adelaide Festival Centre Trust to cover the cost of servicing the loan. It is an interest-only loan.

Mr GARDNER: You are adding to the grant. Is that all in one year or is that for a period—

The Hon. J.J. SNELLING: No, that would be ongoing. It is a loan over 10 years. I will give you the advice I have been provided. The 2017-18 budget includes the provision for the Adelaide Festival Centre Trust to purchase Her Majesty's Theatre from Arts South Australia. The financial arrangement to support the purchase of the asset and the redevelopment project costs are a combination of the loan from the South Australian Government Financing Authority and the continuation of fundraising activities by the trust.

The loan has been established as an interest-only loan over 10 years. The trust can draw down the funds in line with the expenditure on the capital project. Interest payments will be made on a monthly basis. The existing governance arrangements for the capital project will continue with the Adelaide Festival Centre Trust and Arts South Australia working jointly with the Department of Planning, Transport and Infrastructure.

Ms REDMOND: On this same topic, minister, it is wonderful that this is going ahead, but I just want some clarity on what was the purchase or sale price in that transfer. What is the rate of interest for the interest-only loan and how much will the payments be on an annual basis?

The Hon. J.J. SNELLING: On the mechanism, Treasury would be able to provide more advice about how exactly it works from an accounting point of view. If you look at the 2017-18 Budget Statement, page 81, footnote (b) states:

(b) Includes the purchase of existing assets by the AFCT from Arts SA for the value of $18.9 million.

That is the value of the asset—$18.9 million.

Ms REDMOND: What are the interest-only payments?

The Hon. J.J. SNELLING: We will have to take that on notice. I think we can give you the increase, which would give you a pretty good idea. We will get the information for you for the sake of expediency, but the increase to the grant to the Adelaide Festival Centre Trust covers the cost of the interest. It is budget neutral: it comes in and goes out.

Ms REDMOND: But at the end of the 10 years is the trust intended to repay the loan that was advanced in the first place, if they are only paying interest only?

The Hon. J.J. SNELLING: It would be up to the government of the day to make the decision on what they wanted to do. They might seek them to clear the debt, to repay the loan in full, or extend the period by another 10 years. It will be between the government of the day and the Adelaide Festival Centre Trust what they want to do at the end of the 10 year period.

Ms REDMOND: So there is no definitive—

The Hon. J.J. SNELLING: That is the end and, short of the government making a decision otherwise, then, yes, the arrangement would be that they would repay the principal, but it would be up to the government of the day to make a decision on what they wanted to do. They would have to negotiate with the Adelaide Festival Centre Trust whether they wanted to roll the loan over and continue it on, or whether they wanted to repay it, or indeed perhaps the government of the day might decide they wanted to forgive the loan. That would be decided by the government of the time, which is what has happened in the past.

Mr GARDNER: I refer you to Budget Paper 4, Volume 4, pages 78 and 79, the Film Festival. Earlier in the estimates hearings, the tourism minister advised that questions about the budget for Hybrid World Adelaide would be answered by the arts minister, as the event was organised by the Adelaide Film Festival. Therefore, how much has been spent and will be spent in the 2017 and 2018 years to establish this event? What is the total budget for last year and this year?

The Hon. J.J. SNELLING: My advice is the amount is commercial-in-confidence.

Mr GARDNER: From which budget line is whatever the commercial-in-confidence payment being made? Is this from the Film Festival's grant, or is a special grant being made?

The Hon. J.J. SNELLING: No, it is additional money that comes from Events SA. Events SA has made a grant to the Adelaide Film Festival for Hybrid World and the Film Festival is then responsible for running it and management, engaging sponsorship and all of those sorts of things; they do all that. It has been funded, though, by a grant from Events SA.

Mr GARDNER: I refer you to page 77, which references the arts infrastructure and storage project. Who is undertaking work on Arts SA's current arts infrastructure and storage project?

The Hon. J.J. SNELLING: With regard to the reference you have, these funds are the proceeds of the sale of the Arts South Australia building at Hindmarsh. The funds have been assigned for progression of collection storage solutions. The property was sold to the Department for Education. The funds from that have been put towards the progression of dealing with the storage issues. International museum standard collection storage is a major issue for both the Art Gallery and the Museum, the State Library and the History Trust. A collection storage strategy has been developed and work is progressing to determine the best solution for each organisation. The budget papers say $1.85 million is being put towards this project.

Mr GARDNER: Is this project going to be assisting in managing, for example, what we talked about last year in relation to the water damage to the Aboriginal collection in the Museum?

The Hon. J.J. SNELLING: Yes, that is one of the things that we are having a look at. Obviously, the government does need to come up with a solution for the preservation and storage of our cultural heritage. So, yes, this is one of those issues, but there are also issues relating to the storage of the Art Gallery's collection, which is an issue as well, although not as critical as the storage of the Museum's collection.

It was just pointed out to me that it is particular parts of the Museum collection; the anthropological collection is probably most pressing. Part of the $1.85 million has gone towards renting additional space at Netley to accommodate the items that were being stored in the Hindmarsh facility.

Mr GARDNER: Has all the Museum's anthropological collection—the Aboriginal artefacts—been moved now?

The Hon. J.J. SNELLING: No—

Mr GARDNER: They are still in the Hindmarsh facility?

The Hon. J.J. SNELLING: They were not at Hindmarsh; they have always been at Netley.

Mr GARDNER: Sorry; they are still in the same Netley facility that they were before?

The Hon. J.J. SNELLING: They are. Measures have been taken, as much we can within the confines we have in the existing facility, to try to protect it, but there is only so much we can do within that current facility. It is DPTI that manages the contract, and measures have been taken by the landlord, through DPTI. I can advise that over the last 12 months the following actions have been taken to reduce the incidence of water ingress at Netley Commercial Park:

the frequency of gutter cleaning has been increased from monthly to fortnightly;

approval has been obtained to remove a significant tree that drops leaves that block the gutters; and

the building owners have undertaken roof repairs.

So there are steps that have been taken to try to protect as much as we can within that current facility.

Mr GARDNER: This time last year—I think Arts estimates was one year ago today—the minister outlined a series of incidents related to water damage to those artefacts, that had been taken in the first seven months of last year. Have there been any further incidents in the 12 months since?

The Hon. J.J. SNELLING: Following the roof repairs in March 2017, water ingress incidents have ceased. Prior to this, there were incidents in July 2016 and one each in November, December, January and February. In the December incident, a saltwater crocodile got wet but did not sustain any damage. There was no damage to collections in the other incidents.

Mr GARDNER: Excellent.

The Hon. J.J. SNELLING: And apparently the crocodile is okay.

Mr GARDNER: Last year, you indicated that $200,000 had been proposed for remediation steps to protect the collection—I think those were probably the ones just outlined—and then there is this project in the budget papers. Are there any further funds currently allocated towards this purpose, acknowledging that you have suggested, I think, that further funds will be necessary?

The Hon. J.J. SNELLING: Regarding the funds indicated in the budget, the $1.85 million, obviously part of that has been expended to accommodate that collection that was at Hindmarsh down at Netley, but part of it has also been expended into working on the next steps with regard to storage. Any other direct works to protect it are being met within the existing capital budget of Arts SA.

Mr GARDNER: While we are on the Museum—I think the reference is page 75—Suzanne Miller was a director of the South Australian Museum for a number of years. Last week, she was arrested on fraud charges in Queensland where she allegedly gained $45,000 in benefits for herself using the private health insurance of the Queensland Museum. What work has been undertaken in South Australia to check our records to ensure that no inappropriate activities took place here?

The Hon. J.J. SNELLING: This is an employment matter, so I invite the deputy chief executive to answer as best she can, but there might be some restrictions on what she can say.

Ms REID: Thank you, minister. At this point, we are not a party in any way to the case before the appropriate agency in Queensland nor, to my knowledge, have we been contacted by that agency for any information pertaining to their investigation. Obviously, we would not make comment on a matter before such an agency in another jurisdiction.

We are undertaking some due diligence to have a look at our records and our arrangements at that time. As has probably been made clear from the media, when Ms Miller arrived in Australia to take up the role at the South Australian Museum following an international recruitment process, she was not a citizen of this country. I think that is about all I can say at this stage. The strict answer to your question is, yes, we are undertaking some proper due diligence ourselves about the matter, but no questions have been raised for us at this point.

Mr GARDNER: So there has been no contact from Queensland police to Arts SA, DSD or the Museum?

Ms REID: Not to our knowledge. At the time of course, Arts South Australia was part of DPC.

Mr GARDNER: And to your knowledge they have not been contacted either?

Ms REID: If they have been, they have not make contact with me or with anyone here today.

Mr GARDNER: But your investigations progress into making sure we have not been dudded either?

Ms REID: I would not even characterise it as an investigation. I think, with a matter such has been raised—and we have only received information about it in the media, so we have exactly the same information that perhaps you have—

Mr GARDNER: Not much, then.

Ms REID: —it is right and proper for us to go back and have a look at it ourselves.

Mr GARDNER: Can I frame a question in a way that the minister may care to take on notice. Is the minister satisfied that, when Ms Miller was in that position in South Australia, there were no untoward activities taking place? I appreciate that there is a check currently going on.

The Hon. J.J. SNELLING: I was not the minister at the time, but at this stage there is nothing I am aware of that gives me any cause for concern. Obviously, out of an abundance of caution, the agency is taking what I think is the appropriate action, given the information that we have.

Mr GARDNER: The catch-all budget reference for Arts SA is page 72 and I suppose page 78, access to artistic product. On 6 November 2014, the minister issued a press release titled, 'Arts venues on the move', in which he said of the Fowler's building at the Lion Arts Centre, with State Theatre moving in to become the anchor tenant, 'We will work with the current tenant on how we keep live music performances continuing in the event of any changes.' In what way has the government been doing that?

The Hon. J.J. SNELLING: I will invite Mr Louca to take that question.

Mr LOUCA: State Theatre moved their administration last year from the Railway Station complex owing to the Festival Centre redevelopment works and, in particular, the grade separations happening on Festival Drive adjacent to the Railway Station. They moved to occupy a tenancy in the Fowler's building.

The Fowler's Live organisation, which runs the live music venue on the ground floor, has had their lease extended until 30 June 2018 after lengthy discussions and protracted attempts to find alternative venues for the existing tenant, for a number of reasons, including the capacity of the existing tenant to pay commercial rates in other venues. That was unresolved and continues to remain unresolved. He has expressed a desire to us that he is likely to resolve his business and cease to operate at some point after 30 June 2018 to go into retirement.

That may change, as it has in the past, because he has previously indicated that he was looking to retire. State Theatre is quite clear that they have long-term aspirations to return that site for more uses, including theatre work, but in our discussions with them about their aspirations we have made it clear that that will continue to need to be operated in addition to any theatre work, if that became part of the future; that live music would continue to operate out of that venue.

Mr GARDNER: Your expectation is then that what is currently Fowler's Live would in one form or another continue to offer live music opportunities. In particular, the uniqueness of the site is that it offers all ages gigs as a licensed venue.

Mr LOUCA: The existing operator, Peter Darwin, has indicated to us on several occasions now that he was looking to retire after the extension of this contract. Fowler's Live is not the only all-ages venue in Adelaide; there are many and, in the five years since the live music strategy of the government, more venues have come online, which is indicated by the growth in the overall sector, particularly through the efforts of the Music Development Office at St Paul's Creative Centre. The government's desire is that that continues to operate as a multipurpose venue.

Mr GARDNER: If the government's desire is for it to continue to operate as a multipurpose venue, is it your expectation that you will be looking for a new tenant to take over the Fowler's Live tenancy or that State Theatre would take over the remainder of the building and operate it as a multipurpose venue?

Mr LOUCA: We have not come to those arrangements yet. The current tenancy through Fowler's Live and Flashpoint, which is the lessee—they continue to operate a lease until 30 June. We have not had further discussions, and State Theatre certainly have not put a concrete proposal to us to take over that lease. We will go through a process. Presumably we would go to market or through an expression of interest process in the way that we do with our other venues.

Mr GARDNER: Who is managing this process? Is it Mr Louca as the head of Arts SA?

Mr LOUCA: Arts South Australia.

Mr GARDNER: Is there a contact person or a person in charge? Is it the executive director or is there a staff member who is in charge of it?

Mr LOUCA: It normally reports under Hannah Schultz, one of the directors in Arts South Australia. Hannah is the director responsible for managing our infrastructure and her team manages those assets. I think we have about 108 assets that we manage for the state.

Mr GARDNER: While I appreciate Mr Louca's suggestion that it would continue as a multipurpose venue, is there a proposal, a plan or a budget even, to adapt the building somewhat so that it can meet State Theatre's needs for a rehearsal space or potentially a small performance space in what is currently the area that is used as the all ages venue?

The Hon. J.J. SNELLING: There is no additional funding, but my understanding is that they are currently using the spaces that are available.

Mr GARDNER: If we go to page 72, FTEs, last year the staff cap for the Arts Centre of South Australia was 30.3, Artlab was 24.5 and corporate overhead allocation was 37.2. In relation to this year's FTEs, I assume that those numbers are fairly similar, but how many people work with Mr Louca in the Arts South Australia agency itself?

The Hon. J.J. SNELLING: It is 37.47 FTEs in Arts South Australia.

Mr GARDNER: Is that the number of people who specifically work under Mr Louca's direction or is that the broader allocation within DSD, which might include some Treasury allocation for other purposes, or are all those people actually within Arts South Australia?

The Hon. J.J. SNELLING: That is the actual direct number.

Mr GARDNER: Last year, the minister was kind enough to read a list of the grants, subsidies and intergovernment transfers for the 2016-17 year. I am talking about the Adelaide Festival Centre, the Adelaide Festival and so on. Are we able to get those figures for the 2017-18 year?

The Hon. J.J. SNELLING: Do you want me to read it or I could just table it?

Mr GARDNER: You can table it.

The Hon. J.J. SNELLING: I table two lists: one is 2017-18 funding for major arts organisations and one is for the smaller organisations for 2017.

Major Arts Organisations 2017-18 Funding

2017 Arts Organisations Funding

Mr GARDNER: In relation to the Festival Plaza, using the same budget paper, is the Festival Centre precinct development on time and on budget?

The Hon. J.J. SNELLING: The Adelaide Festival Centre redevelopment is progressing with two main construction projects: the northern promenade and the internal foyer works now underway. In addition, significant contracts have been let for the upgrade of the technical equipment within the theatres. South Australian construction company, Badge Constructions, is progressing works associated with the northern promenade. This will see the creation of a walkway along the northern side of the theatres, from King William Road to the Riverbank pedestrian bridge. The walkway will feature new entries into theatres that will provide access to venues during the Walker Corporation redevelopment of the car park and beyond.

Another key feature will be the Walk of Fame, featuring 120 plaques of artists who have graced stages of the Adelaide Festival Centre since 1973. The project will also upgrade the Elder Park kiosk and toilets and create a new transition area from the Adelaide Festival Centre to Elder Park on the site of the current amphitheatre, featuring a music theme playground. Works to the northern promenade are due for completion in December 2017.

Schiavello Construction, which is undertaking the interior upgrade, began on site on 24 July this year. The refurbishment of the Festival Theatre foyer will include the upgrade of amenities, the installation of a new Bass counter and cloaking facilities, new bars and exhibition spaces. The design also incorporates a new eastern entrance directly off King William Road.

The Dunstan Playhouse works will refurbish level 4. The plaza level will see the installation of a pedestrian lift to allow access between the different foyer levels. Due to the nature of the Adelaide Festival Centre building and the complexity of the precinct-wide redevelopment, the Department of Planning, Transport and Infrastructure has engaged Mott MacDonald to oversee the interfaces between the private and public infrastructure projects. They are on time and on budget, I am advised.

Mr GARDNER: When will works be complete?

The Hon. J.J. SNELLING: Essentially, it will be complete in December 2017. There is one small part that will happen a couple of months later but the building, for all intents and purposes, will be complete in December.

Mr GARDNER: The one small part, that will be in January?

The Hon. J.J. SNELLING: I will invite Mr Louca to explain.

Mr LOUCA: Thank you, minister. The component that will be completed later—we expect that to be sometime in March 2018, I believe—is the outer foyer work, which is the interface between the Walker, so the eastern forecourt and the Dunstan Playhouse entry will be completed later. The Dunstan Playhouse entry will be significantly later in the project, but the eastern forecourt area, which is adjacent to the Walker component of the project, will come online several months after the reopening of the northern promenade and interior foyers.

Mr GARDNER: Who owns the title for this land?

The Hon. J.J. SNELLING: Me—well, the Minister for The Arts, whoever that person happens to be at any particular time.

Mr GARDNER: Does any of that change with the Walker redevelopment?

Mr LOUCA: The minister remains the majority titleholder in that precinct. There are mixed titles in that area. You would be familiar with the legislation around the ASER joint use of those facilities. It is quite a complex intersection between multiple titles, but the majority of the landholdings at the moment remain with the Minister for The Arts. There have been some discussions between government agencies about whether or not we would need to transfer titles to reflect the building footprints, but at the moment it is largely being managed through leaseholds being transferred, rather than titles. The titles remain intact.

Ms REDMOND: Minister, on the same redevelopment, you have mentioned the technical, backstage component. As I understand it, one of the problems we have had in getting some major productions into Adelaide has been the inadequacy of our technical and backstage facilities, which, of course, being the first of the festival theatres around the country, were out of date. Is the component in this project going to be sufficient that we will rank with the other states in relation to our capacity to get the big productions into town and into our Festival Theatre?

The Hon. J.J. SNELLING: Yes, it will be, or it will significantly improve it. There is $11 million towards technical equipment, that is, replacing the data and power wiring, follow spotlights, new sound desks, theatre rigging and stage drapes. It will bring it into line with more modern theatres.

The other issue we have with attracting productions is the availability of the theatre. One of the main reasons we are investing in Her Majesty's is so that Her Majesty's can take a lot of the load off the Festival Theatre and make the Festival Theatre more available. We anticipate that Her Majesty's would tend to do the more commercial-type work, and that would provide greater access to the Festival Theatre for the home companies. Having that additional capacity at Her Majesty's will probably be the most important thing in attracting productions to the state.

Ms REDMOND: Following on from that line, one of the other things happening at the moment—and I have seen you at the concerts—is that the ASO is currently often performing at the Adelaide Town Hall but has from time to time performed at the Festival Theatre. Has there been any consideration by the government of the need for a concert hall in Adelaide, given that a symphony orchestra—and we have one of the best in the world—is best positioned in a situation quite different from either the capacity of the Adelaide Town Hall or the Festival Theatre?

The Hon. J.J. SNELLING: Arts South Australia is undertaking an arts infrastructure survey basically to assess the infrastructure needs of all our companies, and no doubt a concert hall will be taken into account as part of that survey. From a political point of view, I would need a lot of convincing about the need for a concert hall. Certainly, I would have higher priorities at this stage for capital expenditure within the arts portfolio.

From my point of view, my highest priority is to try to deal with the needs of the cultural collection we have and making sure that is accommodated. At this stage, I would make that a higher priority than a concert hall, but I know that there are different points of view in the arts community about that. I will let the infrastructure survey take place, and then we will have a look at its recommendations.

Ms REDMOND: On that infrastructure survey, how detailed is that in the sense of digging into communities? My observation from attending a lot of arts functions—and I see far more live theatre than I do movies or anything else—is that most of our small suburban companies are operating in probably council-owned community theatres and places like the Arts Theatre, which is owned by a religious body. Is the infrastructure survey taking into account all those, like the Sir Donald Bradman Drive theatres, the Star Theatre, and so on, or are they looking only at the state-owned capacity?

The Hon. J.J. SNELLING: Over 80 arts and cultural organisations have been approached to participate in the survey, so that would include those small community arts groups. It is a needs analysis, so we are looking at what their requirements are and basically identifying where the gaps are. So, yes, what you have identified would form part of that survey.

Mr GARDNER: Of the 80 groups approached, how many have responded and when do you anticipate this work being completed?

The Hon. J.J. SNELLING: The survey closed last week. We do not have the response rate, but we can get that information back.

Mr GARDNER: Who is conducting the work of this survey? Is it Arts SA, or is it being contracted to a private company?

The Hon. J.J. SNELLING: Arts SA and SGS Economics and Planning have been engaged to assist with the project. SGS is experienced in undertaking similar work for Creative Victoria and Arts New South Wales.

Mr GARDNER: But they are not a South Australian company.

The Hon. J.J. SNELLING: They are based in Sydney.

Mr GARDNER: What is the value of that contract?

The Hon. J.J. SNELLING: We will have to take that on notice.

Mr GARDNER: I will go back to the Festival Plaza, page 72. In last year's estimates, one year ago today, in relation to the Hajek sculptures Mr Louca advised, 'The removal of the sculptures commenced last Friday with the removal of the plinth.' One year and a few days on, I do not know if you have had a look out the back, but there are still quite a few plinths left. How is that work going?

The Hon. J.J. SNELLING: You are not a fan of postmodernist sculpture?

Mr GARDNER: There is a time and place, minister.

The Hon. J.J. SNELLING: I will invite Mr Louca to respond.

Mr LOUCA: The items were removed for preservation and to salvage an acknowledgement of that sculpture and to reimagine it in the new plaza works. We had to take out a couple of them because one of the reasons the Hajek sculpture is not viable is that the concrete degradation and the sculpture is integrated into the fabric of what is essentially the roof of a car park. The remainder of that installation will be demolished when works commence on the Walker development.

Mr GARDNER: When will that be?

Mr LOUCA: That is a DPTI question; it is not inside our brief.

The Hon. J.J. SNELLING: We will have to get back to you on that. DPTI are handling that part of the contract.

Mr GARDNER: I refer to page 80. There is $300,000 indicated as a contribution towards the construction of the floating Riverbank Palais. What undertakings did the state government receive from the festival organisers in relation to how the Palais would be managed between festivals before they committed $300,000 towards its construction?

The Hon. J.J. SNELLING: No undertakings were made to us, but the Adelaide Festival would have engaged directly in order to get the requisite approvals from the Adelaide city council. Whatever undertakings were given would have been given to the Adelaide city council, rather than to the government.

Mr GARDNER: Given the $300,000 that has been given by the state government to this part of the Festival last year, has the state government been consulted on whether they support its removal or demolition prior to its intended future use?

The Hon. J.J. SNELLING: No, we have not. It is entirely a matter between the Festival and Adelaide city council.

Mr GARDNER: Has the state government been approached for any further financial support to deliver aesthetic improvements to the concrete barge or for its relocation and mooring elsewhere?

The Hon. J.J. SNELLING: No, there has not. We have increased funding to the Festival, but not for that purpose.

Mr GARDNER: Mr Brookman, who we are now pleased to see is the Executive Director of the Adelaide Festival—no aspersion on the previous one; I thought she was great too—has indicated that the Palais made a loss in 2017. Does the government have a figure on how much that loss was?

The Hon. J.J. SNELLING: They provide a financial report back to Arts South Australia quarterly. Mr Louca can explain.

Mr LOUCA: For those major funded organisations, generally they report quarterly to us, and that final quarter, which is the annual report, has not yet been supplied. We would have to wait until that report was received. The granularity of that, whether a specific measure within the context of what is over an $8½ million budget for the entirety of the Festival in terms of our funding grant, is that you would not necessarily have a distilled profit and loss for each individual venture within the context in that respect. They did expect to fund it over a period, so amortised over a three-festival period.

Mr GARDNER: I can appreciate that, and I do not take issue with any of what the director has just said; however, the executive director of the Adelaide Festival has made public comments suggesting that there was a loss. If, when that report comes in it identifies the loss, I wonder if the minister might get back to the parliament or just take it on notice to get back to us on how much that is?

The Hon. J.J. SNELLING: Yes, I am happy to. I would just need to check that there are no issues with that being made public. I should point out that the Adelaide Festival would make losses and surpluses on different programs, and they would go into it with eyes wide open expecting to make a loss. It may not be of any particular surprise that they made a loss on this because there would be lots of things they would do that they would not make a surplus on, but would not expect to either.

Ms REDMOND: Further to that, it still seems to me odd that there appears to be a situation where the Adelaide Festival may well have gone into it thinking they would make a loss, but they may not have anticipated just what the cost was going to be of this problem that has now erupted. I was wondering whether the minister could undertake to make some inquiries as to the extent to which they actually understood the problem that they were going to be confronted with once the current festival was over.

I understand what you said about there being an anticipation that there would be an amortisation over a period of years of the cost, but to what extent was there an excess of cost involved in the current problem of the base of the barge being left?

The Hon. J.J. SNELLING: I am happy to get that information back to the parliament.

Mr DULUK: On page 78, Carrick Hill, is there an explanation for why the number of visitors at Carrick Hill is projected to decrease this financial year?

The Hon. J.J. SNELLING: Last year was their 30^th anniversary. They had extra programs, which supported higher visitors. Over 5,500 visitors attended the Stanley Spencer exhibition. There were 5,500 visitors—the highest attended paid exhibition ever held at Carrick Hill—which meant last financial year's visitation was higher than you would normally expect because of that exhibition.

Mr DULUK: The year before that we had 71,000 visitors, last year 68,000 and this year was budgeted for 65,000, so we have seen a decrease two years in a row.

The Hon. J.J. SNELLING: The year before would have had additional programs as well, so it is simply that there is not the programming this financial year to support the higher visitation numbers.

Mr DULUK: Does the government have anything in place to assist Carrick Hill to achieve its target of increasing annual visitations to 100,000 over the next five to 10 years?

The Hon. J.J. SNELLING: There are a few things we are looking at. We have not committed any money yet, but there are a number of things. Firstly, obviously we are looking at work being done to the house itself. The other issue Carrick Hill has is with regard to the marquee where they have functions. They have an agreement with Mitcham council—that is not an ongoing agreement; it terminates—for them to have the marquee, and we are working with them to develop a permanent structure there to replace the marquee.

Mr DULUK: Has the government made any decision with regard to that permanent structure and whether—

The Hon. J.J. SNELLING: No, we have not.

Mr DULUK: Is there a time line in regard to when you expect a decision to be made?

The Hon. J.J. SNELLING: Currently, the approval to use the existing marquee expires on 30 June 2018. That said, Carrick Hill is working with Mitcham council about that. The board has been working on a master plan to develop the house and grounds infrastructure to maximise financial sustainability. Plans for the new 9½-kilometre Wirraparinga Loop Trail for recreational walkers, with Carrick Hill as a starting point for the trail, has also been factored into the master plan.

The board has developed concept plans for a proposed pavilion that will accommodate a visitor information centre, gift shop, cafe and restaurant. The pavilion will provide improved visitor amenities and services for visitors to Carrick Hill, as well as the Wirraparinga Loop Trail, and provide revenue opportunities to the board. Carrick Hill is exploring whether the commercial sector is willing to invest in a proposed pavilion. A market sounding process will commence in the next few months to determine market interest.

Mr DULUK: Thank you, minister—you have read the annual report. The annual report of the Carrick Hill Trust 2015-16 states that only seven schools visited Carrick Hill in that year, bringing a total of 210 students to the self-guided Children's Story Book Trail and grounds. What is the minister doing to assist and promote Carrick Hill as a destination for school groups?

The Hon. J.J. SNELLING: I expect the board to do those sorts of things. It is not normally something that the minister would directly involve himself in, although I have taken my children there.

Mr KNOLL: That is probably deemed statistically significant.

The Hon. J.J. SNELLING: It would have statistically had an effect. I was surprised it was not included in the annual report.

Mr GARDNER: I refer you to page 78, which deals with History SA. I understand that Veterans SA are looking at plans to take up the whole of the Torrens Parade Ground's Drill Hall. What plans does the state government have for the location of the History Trust to be moved?

The Hon. J.J. SNELLING: There is no formal advice at this stage that they have to move, but History SA have been looking for some period of time at alternative accommodation.

Mr GARDNER: Does the government have any sites in mind for that?

The Hon. J.J. SNELLING: I think History SA are investigating alternative accommodation somewhere close to the North Terrace precinct. They are having a look at what the options are. With regard to their vacating the Torrens Parade Ground, there is nothing happening in the immediate future.

Mr GARDNER: I refer you to page 72. I note on the charts that the government identified before that there is $152,400 in 2017 arts organisation funding for the Feast Festival. How does that compare with last year? I do not have the 2016 figure here.

The Hon. J.J. SNELLING: It is consistent with previous years. There was no reduction.

Mr GARDNER: Has there been any approach from the Feast Festival to Arts SA, or indeed to the government, over the past year for extra support?

The Hon. J.J. SNELLING: They received $35,000 extra last financial year from Arts South Australia. They also received some money from the Department of the Premier and Cabinet, and that was related to the relocation of their offices to Raj House and also to establish a drop-in centre.

Mr GARDNER: Are they reporting on how that is going to you or to the Department of the Premier and Cabinet?

The Hon. J.J. SNELLING: The money from the Department of the Premier and Cabinet? They would acquit that through the Department of the Premier and Cabinet's acquittal process.

Mr GARDNER: Perhaps I will ask one or two last questions before we do the omnibus questions. What involvement has Arts South Australia or any other function within the arts portfolio had with regard to Open State? Is there any funding going to Open State? Has there been any advice given to the Department of the Premier and Cabinet to fund Open State?

The Hon. J.J. SNELLING: There might be individual arts organisations that engage with it, but there is no additional program funding.

Mr GARDNER: So that must come through Premier and Cabinet or somewhere else?

The Hon. J.J. SNELLING: Yes, it would be Premier and Cabinet.

Mr GARDNER: Last year, $500,000 was provided to the Art Gallery to progress the business case for the proposed Adelaide contemporary museum. I understand that there was a panel with various people. Has that panel reported?

The Hon. J.J. SNELLING: Yes, it has.

Mr GARDNER: What is the anticipated final cost of the Adelaide contemporary gallery after the design project that is currently underway is completed?

The Hon. J.J. SNELLING: A variety of figures have been publicly quoted, but the final cost will depend upon the design. We have engaged with the procurement for a design competition and it will report early next year. The final cost will be determined by the design that is chosen.

Mr GARDNER: One last question, and then we will do the omnibus questions. Are there any new grant programs being commenced in the next year, such as has been suggested by the Arts Industry Council?

The Hon. J.J. SNELLING: I will invite Mr Louca to answer that.

Mr LOUCA: The arts programs were reviewed fairly recently and reorganised into the structure they are in now. The minister, in his opening statement, remarked on the money that was put into one of the programs to support small- and medium-sized organisations. That money will continue to flow, so that is additional funding into that pool.

We have a small, new experimental grants program called ArtsPitch, which is essentially a kind of auditioning format for grants programs with a low burden around the application regime. It is five grants of $5,000 to equal $25,000. No additional funding has been received for specific lines within the Arts Industry Council's requests.

The CHAIR: The member for Davenport is going to do the omnibus questions.

Mr DULUK: The omnibus questions are as follows:

1. Will the minister provide a detailed breakdown of expenditure on consultants and contractors above $10,000 in 2016-17 for all departments and agencies reporting to the minister, listing the name of the consultant, contractor or service supplier, cost, work undertaken and method of appointment?

2. In financial year 2016-17 for all departments and agencies reporting to the minister, what underspending on projects and programs (1) was and (2) was not approved by cabinet for carryover expenditure in 2017-18?

3. For each department and agency reporting to the minister, please provide a breakdown of attraction, retention and performance allowances, as well as non-salary benefits, paid to public servants and contractors in the years 2015-16 and 2016-17.

4. For each agency for which the minister has responsibility:

(a) How many FTEs were employed to provide communication and promotion activities in 2016-17 and what was their employment expense?

(b) How many FTEs are budgeted to provide communication and promotion activities in 2017-18, 2018-19, 2019-20 and 2020-21, and what is their estimated employment expense?

(c) The total cost of government-paid advertising, including campaigns, across all mediums, in 2016-17, and budgeted cost for 2017-18.

5. For each agency for which the minister has responsibility:

(a) What was the cost of electricity in 2016-17?

(b) What is the budgeted cost of electricity in 2017-18?

(c) What is the provisioned cost of electricity in 2018-19, 2019-20 and 2020-21?

6. For each grant program or fund the minister is responsible for please provide the following information for the 2016-17, 2017-18, 2018-19, 2019-20 and 2020-21 financial years:

(a) Balance of the grant program or fund;

(b) Budgeted (or actual) expenditure from the program or fund;

(c) Budgeted (or actual) payments into the program or fund;

(d) Carryovers into or from the program or fund; and

(e) Details, including the value and beneficiary, of any commitments already made to be funded from the program or fund.

The CHAIR: The time having expired for the examination of this portfolio, I declare the examination of the Minister for The Arts completed.

Sitting suspended from 12:33 to 13:30.