Department of the Premier and Cabinet, $341,333,000

Administered Items for the Department of the Premier and Cabinet, $20,260,000

Department for Industry, Innovation and Science, $67,109,000

Administered items for the Department for Industry, Innovation and Science, $10,891,000

Membership:

Hon. J.A.W. Gardner substituted for Mr Cowdrey.

Minister:

Hon. A. Michaels, Minister for Small and Family Business, Minister for Consumer and Business Affairs, Minister for Arts.

Departmental Advisers:

Mr W. Hunter, Executive Director, Major Programs, Department of the Premier and Cabinet.

Mr S. Woolhouse, Executive Director, Communities and Corporate, Department of the Premier and Cabinet.

Ms J. Layther, Director, Arts SA, Department of the Premier and Cabinet.

Mr A. Reid, Chief Executive, Department for Industry, Innovation and Science.

Ms P. Chau, Executive Director, Portfolio Delivery, Department for Industry, Innovation and Science.

Mr C. Markwick, Executive Director, Industry and Workforce Capability, Department for Industry, Innovation and Science.

Ms B. Bates, Director, Creative Industries, Department for Industry, Innovation and Science.

Mr M. Smith, Director, Finance and Investment Services, Department for Industry, Innovation and Science.

The CHAIR: The portfolio is Arts SA, part of the Department of the Premier and Cabinet, and Creative Industries, part of the Department for Industry, Innovation and Science. The Minister for Arts is appearing. I declare the proposed payments open for examination. Minister, would you like to introduce your advisers?

The Hon. A. MICHAELS: Yes, on my right, I have Jennifer Layther from Arts SA. I have Mr Steven Woolhouse and Mr Wayne Hunter. Behind me, I have Callan Markwick, Adam Reid, Phuong Chau, Becc Bates and Martin Smith. As I understand it, we are going to start with DPC and Arts SA questions, and then we will need to change advisers to go on to DIIS and Creative Industries.

The CHAIR: I think that is correct.

The Hon. A. MICHAELS: It is a combination.

The CHAIR: It is a combination. Have you two agreed on what the separation will be in that hour?

The Hon. A. MICHAELS: Yes.

The Hon. J.A.W. GARDNER: It will be flexible, and I thank the minister for her flexibility.

The CHAIR: While you two are being nice to each other, I will let you go until 11.45.

The Hon. J.A.W. GARDNER: I refer to Budget Paper 4, Volume 4, page 15, and start on some questions about infrastructure, the investing expenditure. In relation to the Cultural Institutions Collection Storage Facility, can the minister outline what the current scope for this project is and how that is at variance with the original scope, particularly in terms of space?

The Hon. A. MICHAELS: I can. I have had an update since we last had that conversation as well. With the storage facility, as the member is aware it was budgeted for $86.5 million in the 2020-21 budget. We went out for requests for tenders and they came back in mid-2022 all exceeding cost expectations, so a significant amount of work has been done by Mr Hunter and his team on a value management process.

We are now in a position, I think, where we are in a much more comfortable spot, where we are now able to say that we are progressing with the original scope and with the original budget. I can say there have been a few additions to that budget. There was $872,000 in the art storage budget that was provisioned in the department's budget. That is going to be used for costs relating to the project. In May 2022, a further $782,000 was allocated from the department's capital funds for early works and $4.2 million was allocated for the purchase of land within government.

As at 22 June 2023, actual cost incurred was $2.425 million, bringing the current total spend on the project so far at $8.829 million. The total forecast budget for the project is $92.354 million now, which is slightly higher than the original budget, but that enables us to progress with the build within the original scope and within that total budget.

The program of works will not be completed until March 2025, with a six-month additional to move the collections over, so total handover in September 2025 is the projection, as I understand it. At the moment, negotiations are going on about extending the lease at Netley Commercial Park. The project is in a better spot now and I am pleased to advise that to the house.

The Hon. J.A.W. GARDNER: The $782,000 extra in May and the $4.2 million for the land purchase, I did not quite hear the minister, are they new money to the budget, or have they been sourced from elsewhere within government?

The Hon. A. MICHAELS: The $782,000 is departmental money and the $4.2 million was an appropriation from Treasury to buy the land.

The Hon. J.A.W. GARDNER: So new money to the department or to the project at least?

The Hon. A. MICHAELS: Mr Hunter can explain it better than I can.

Mr HUNTER: The $782,000 was existing departmental capital funds that we have transferred to the project in order to fulfil the scope and budget. The $4.2 million was essentially an intragovernment appropriation from the Department of Treasury and Finance to acquire the land, because it was a land transaction within government, so it was acquiring it from the Commissioner of Highways.

The Hon. J.A.W. GARDNER: The $872,000 that I think was the first figure the minister mentioned, that was from within the project cost but moved from the department to the project?

Mr HUNTER: From the department to the project, correct.

The Hon. J.A.W. GARDNER: That is good news, and I thank the minister for that information. The budget papers actually list June 2024 as the completion time. I think the minister said March 2025 for completion and September 2025 for handover. Obviously, that does present some challenges for the institutions.

The minister, I think, said that the negotiations are underway at the existing rented location. For the institutions, and I think we are talking about the Art Gallery, the Museum and the state history collection, from memory, I have two questions: firstly, can we confirm that the original intention of everything they had signed up to have stored in the storage facility is now able to be stored there?

The Hon. A. MICHAELS: Yes, I understand that is correct.

The Hon. J.A.W. GARDNER: In relation to the extended time from 30 June 2024, when they had hoped to be moving in, to September 2025, who is going to be covering the cost of that rental of the facility for that extra time, particularly if the landlord sees an opportunity to increase the rent?

The Hon. A. MICHAELS: The cultural institutions themselves have a budget for rent that will continue, and if there is any additional that will be met within the project costs.

The Hon. J.A.W. GARDNER: The project cost for the storage collection?

The Hon. A. MICHAELS: Yes.

The Hon. J.A.W. GARDNER: We will move on to Tarrkarri. Obviously, there has been lots of publicity about the project—

The Hon. A. MICHAELS: Can I just point out that there is no budget line for me for Tarrkarri.

The Hon. J.A.W. GARDNER: There is on page 15, Tarrkarri—Centre for First Nations Cultures.

The Hon. A. MICHAELS: It sits under the Premier. I am happy to attempt to answer questions, but it does actually sit under the Premier. I think I said that to you last estimates as well.

The Hon. J.A.W. GARDNER: I am not certain you answered a question about it last estimates. I am not sure I have seen a gazettal of transfer.

The Hon. A. MICHAELS: At some point I think I have answered it.

The Hon. J.A.W. GARDNER: I thank you for the invitation for the question. If it is to be taken on notice, then it is to be taken on notice. The 2023-24 budget identifies $12 million being spent and the estimated result for 2022-23 is $23 million. I am interested to know whether the minister, on notice if necessary, is able to identify what that is to be spent on, particularly the $12 million for the year to come.

The Hon. A. MICHAELS: I would have to take that on notice.

The Hon. J.A.W. GARDNER: Was the budget line here used to pay for the three reviewers who investigated options for the future of Tarrkarri?

The Hon. A. MICHAELS: I believe the answer is yes, but rather than say the wrong thing I will take it on notice.

The Hon. J.A.W. GARDNER: Page 27 refers to targets, just while we are on infrastructure. Can the minister advise the committee of the relevant time frames for the Carrick Hill upgrade and the Hans Heysen Gallery, which are both listed here under the targets? Are they being delivered to their full original scope?

The Hon. A. MICHAELS: In Carrick Hill, construction commenced in January this year. Completion is still due in the second half of this year. In fact, I think they announced in the last week or so the caterer being appointed is the wonderful Maria Favaro and her family from Chianti, which I think will make it an excellent facility.

The Hon. J.A.W. GARDNER: Even more excellent, minister.

The Hon. A. MICHAELS: Even more excellent, yes. For the Hans Heysen Gallery, revised plans were completed in March 2023 and construction is due in the coming months. I am not sure I have a completion time. Does anyone know that? The completion date will be forecast once they can appoint a builder, so I am not able to answer that.

The Hon. J.A.W. GARDNER: Do we have any information on whether the original scope is being maintained there? Has there had to be any value management to this point?

The Hon. A. MICHAELS: The purpose-built gallery, restaurant, gift shop and bushfire-safe storage for artworks were previously announced plans, and that is what is in the project. There has been some value management, but the plans that have gone through council in March 2023 are the plans they are working towards and I think actually do include most of those things.

The Hon. J.A.W. GARDNER: I am going to move to the next page, page 28, particularly the line that talks about grants and subsidies. I am interested in talking about grants to organisations at this point, particularly in the not-for-profit sector. In relation to those not-for-profit arts organisations that have been funded with multiyear agreements, can the minister confirm that these groups are captured by the policy for consistent indexation across the not-for-profit sector?

The Hon. A. MICHAELS: Yes, I can talk to that. It is also probably worth having a look at Budget Paper 5, if that is available to you. Page 10 refers to the indexation supplementation for non-government organisations more particularly. You will see that that supplementation was intended to support non-government organisations meeting the cost of wage inflation pressures in 2023 impacting a range of NGOs that provide services to social, community, home care, child protection, homelessness and disability sectors.

For the arts organisations, some of them do fit into that program and will get the supplementation. At the moment, my office and DPC are working with Treasury more broadly to see if there is a solution for that. I think they will continue to get their 2.5 per cent indexation, the standard published rate. That is what they ordinarily would get and that is what they will continue to get. This supplementation was something that was announced in the Mid-Year Budget Review, particularly targeting those NGOs I just read out, but we are working to see if there is a solution to capture all those arts organisations that are multiyear funded, but that is still a work in progress. Some of them do actually qualify and will get the supplementation.

The Hon. J.A.W. GARDNER: Thank you, minister. So, obviously, what has been the policy through several governments of consistent indexation in the NGO sector as an acknowledgement of wage pressures where institutions/NGOs are doing work on behalf of government, I guess the measure that you have pointed me to in Budget Paper 5 points out that that supplementation has been provided to meet the costs associated with wage and inflation pressures in 2023. Given the baseline policy for consistent indexation, why has that supplementation not automatically been applied to the arts NGOs as well as those across other parts of the social sector?

The Hon. A. MICHAELS: It was announced in that framework under those guidelines in the Mid-Year Budget Review, so it was taking on those organisations that have minimum award outcomes that are impacted. That is what was announced; that is what is currently in train. In terms of expanding that beyond that to more broadly, the arts organisations, like I said, we are working with Treasury to see if that is possible.

The Hon. J.A.W. GARDNER: The minister said that some of the arts organisations did qualify for the funding. I think there are probably about 40 organisations that are getting the indexation. The minister can correct me if I am wrong, but how many of those 40 or so organisations have so far been successful in getting the tick from Treasury to receive the supplementation?

The Hon. A. MICHAELS: I understand it is those that have employees on the minimum award. I can take that on notice and come back to you. I do not have a number at the moment because they are still working through that. As I understand it at the moment, it is those that employ people on minimum award.

The Hon. J.A.W. GARDNER: If the organisations that are paying the minimum amount allowed by the award to staff have been successful, can I clarify: does that mean that those who are paying above award or whose staff do not fit neatly into an award are those that have not been successful as yet?

The Hon. A. MICHAELS: They are the ones we are working through. As you would be aware, for a lot of these arts organisations there are not the traditional employment mechanisms in place. That is the difficulty. We are working through that.

The Hon. J.A.W. GARDNER: Can the minister advise if the Adelaide Fringe was one of the successful organisations that has been provided that supplementation?

The Hon. A. MICHAELS: We will take that on notice, with whatever else we can provide in terms of those ones that have been accepted.

The Hon. J.A.W. GARDNER: Thank you. I will confirm the question—and I appreciate the response in terms of those that have been accepted, but perhaps, as the minister is investigating which organisations have been accepted, can I also seek information as to the basis upon which those organisations were chosen over the others and whether there are any criteria other than that they are just the ones that pay the award, purely.

The Hon. A. MICHAELS: My understanding on the eligibility is to be a not-for-profit organisation for the delivery of services on behalf of government and include a provision of staffing costs impacted by minimum award outcomes. I understand those are the conditions that were in place for that supplement.

Again, I note that the 2.5 per cent published rate is what they were expecting and continue to receive as indexation. That is across all NGOs that are working with government that otherwise do not fit into this category. I think there might potentially be some environment groups and some others that are in that same category that we are working with.

The Hon. J.A.W. GARDNER: As I understand it, SACOSS and the Arts Industry Council and all of the not-for-profit umbrella groups have been urging the government to provide supplementation that has been provided to some but not others. Does the government consider that the arts organisations are not frontline service providers in the way that the ones that have been successful are and, indeed, does the government consider that those arts not-for-profits are less worthy than the ones that have been provided the supplementation, or are they facing less of a challenge with inflation than the others?

The Hon. A. MICHAELS: They are certainly not facing any less of a challenge with inflation; they are certainly no less worthy. But there are criteria set up for these programs, and this particular supplementation had particular criteria that were announced in the Mid-Year Budget Review. Like I said, I am seeking some flexibility and working through with Treasury as to being able to expand that across those very worthy arts organisations.

The Hon. J.A.W. GARDNER: Can the minister advise when she expects to have an outcome from her negotiations with the Treasurer on that matter?

The Hon. A. MICHAELS: I cannot answer that; of course, it is a decision for the Treasurer. I am hoping quickly, but I cannot answer that definitively.

The Hon. J.A.W. GARDNER: We wish you luck. Can I turn to page 27 in relation to targets. This one might come up a couple of times. There is a target:

Deliver a range of priority policy and strategy outcomes to develop the sector, leverage opportunities and investment, and strengthen the sustainability of the sector.

So a fairly broad target. Last year, we discussed the minister's planned implementation of the government's election commitment to work with the sector to address issues relating to work insecurity and income inequality for artists including investigating the establishment of a portable long service leave scheme for artists. Can the minister provide an update as to where this project is up to?

The Hon. A. MICHAELS: The member would be aware of the National Cultural Policy—Revive. The legislation that recently went through sets up creative workplaces within the Australia Council, so they will do similar work. We are working through how that fits in with what we are doing. The portable long service leave is currently with the Attorney. There is a working group with the Minister for Industrial Relations working on that particular project. So we are working through that and look forward to being able to have some positive outcomes dealing with that work insecurity for the sector.

The Hon. J.A.W. GARDNER: Last year, the minister said that a program would be implemented to fulfil this commitment and she described an aspiration of the 2022-23 financial year. If the Attorney is now working on that policy, does Arts SA or the minister's office have somebody who is part of that working group, or are you waiting on advice from the Attorney as to how it is going?

The Hon. A. MICHAELS: We are waiting on advice from the Attorney on that.

The Hon. J.A.W. GARDNER: Is there an updated estimated time frame on when this election commitment will be completed?

The Hon. A. MICHAELS: I can take that on notice and come back to you.

The Hon. J.A.W. GARDNER: Still on targets, moving to:

Maintain a focus on the implementation of the Aboriginal and Torres Strait Islander Arts Strategy for South Australia…

I recall the minister last year confirming the government did remain committed to delivering in all areas of the ATSI Arts Strategy. Does that remain the government's position, or have there been any changes to its response to the ATSI Arts Strategy?

The Hon. A. MICHAELS: No, that is still progressing, and for the 2022-23 year some of the key outcomes include partnerships and collaborative initiatives supporting First Nations governance in arts organisations, First Nations Playwrights Fellowship as well, and a program supporting professional critical writing that is done in partnership with Solstice Media. So there are some very good outcomes from the 2022-23 financial year.

For the 2023-24 financial year, we are looking at digital skills and skills development for First Nations artists and arts workers, and that will be influenced by the advice of the Aboriginal and Torres Strait Islander Arts Advisory Panel which was stood up a few months back, so that will provide very useful guidance for implementing these priorities.

The Hon. J.A.W. GARDNER: How often has that advisory panel met?

The Hon. A. MICHAELS: They have already met twice and propose to meet four times a year.

The Hon. J.A.W. GARDNER: In relation to the ATSI Arts Strategy, I think last year Ms Layther was able to confirm that there had been a recruitment of one FTE, and you have just provided advice about the establishment of the advisory panel. Are there any other funding measures that have been taken in relation to the delivery of the ATSI Arts Strategy?

The Hon. A. MICHAELS: For 2022-23, the ATSI grants program provided $327,642 to 16 projects. There was $102,500 allocated for the Statewide Indigenous Community Arts Development project, with organisational support and other funding supporting the participation of Aboriginal art across a range of projects, and $100,000 was allocated to support the establishment of the arts centre at Umoona in Coober Pedy. In 2022-23 and going forward there is a dedicated investment of $300,000 into activities and projects outlined in the strategies implementation plan, including, as I mentioned before, the fellowships, writers' mentorships, board governance training, etc.

The Hon. J.A.W. GARDNER: That $300,000 a year and the specific projects mentioned prior to that, is that new money to the budget, new money to the department or from within existing resources?

The Hon. A. MICHAELS: It is within existing resources.

The Hon. J.A.W. GARDNER: In relation to the ATSI Arts Strategy, Aspiration four in the strategy relates to connecting. It talks about:

fostering understanding of the importance of cultural maintenance and safety in attaining improved economic, health and wellbeing outcomes;

building and strengthening networks and relationships across and beyond the sector—I think you have covered that part;

enabling, supporting and facilitating activities to create multiple access points for professional and organisational development across the sector; and

supporting activities that increase the exposure of Aboriginal arts and culture to South Australian, national and international audiences—which I am particularly interested in.

In relation to national and international audience exposure, in particular, does the government have any particular plans to deliver on that outcome?

The Hon. A. MICHAELS: As Ms Layther says, working with the Australia Council for the international exposure is going to be critical, and we are working on that. It is a different department, but I think we had some First Nations work done through music, and there is a Black Empire project as well separate from what DPC is doing. There is a project in Creative Industries as well that is assisting in that sort of exposure. Is there anything else you would like to add, Ms Layther?

Ms LAYTHER: I think it is being flexible with our program, without having targeted strategies but being flexible to support opportunities that come up for Aboriginal artists, particularly in the music and visual arts area, where there is quite a reputation. Our grant and funding programs are available for artists to apply for for touring and other opportunities that take in international markets.

The Hon. J.A.W. GARDNER: One of the organisations that had been important in building national and international audiences obviously was the APY Art Collective. Can the minister give an update to the committee in relation to the inquiry that has been taking place as a result of the well-publicised issues there?

The Hon. A. MICHAELS: Members would be aware of the articles that have appeared in The Australian and their quite serious allegations. I have been working with Minister Burke's office in particular and also with Minister Chansey Paech in the Northern Territory, and it was also discussed at a national arts ministers MinCo in terms of progressing this. We are working through terms of reference at the moment, largely there; I think, it is potentially still with the Crown for settling at the moment.

The issue is finding the right people to lead this inquiry, and I want to do it carefully, finding the right people with cultural sensitivities. Ideally, I would love a First Nations male and a First Nations female as well as potentially some sort of legal or investigative support. We are hoping to be able to finalise that in the next couple of weeks and announce that going forward.

It really is going to be a fact-finding mission for me as minister. ORIC is really the body that has powers to investigate as a federal body. We have undertaken to co-fund this with Minister Burke federally to go and have a look and see what is going on and investigate those quite serious allegations that have appeared in the press.

The Hon. J.A.W. GARDNER: Will the remit of the investigation include the question of whether the government has a view on whether Aboriginal artists should be restricted from being able to use non-Aboriginal studio assistance, given that of course a range of non-Aboriginal artists do so?

The Hon. A. MICHAELS: I will be guided by the experts on the panel on that. There is a question around Tjukurpa, and the Dreaming story being told by an Aboriginal artist being sacred to that person as a different concept from having assistance in creating a piece of artwork, so we just want to really clarify that. There are a number of artists, First Nations and non-First Nations, who get assistance when they are creating work, so I think it is really about the particular cultural sensitivities around Tjukurpa and what sort of interference, if any, has been undertaken in those artworks. We saw the very short video that appeared in Australian Story, which caused concern.

The Hon. J.A.W. GARDNER: Obviously, I suspect our most significant concern is for the artists—

The Hon. A. MICHAELS: Absolutely.

The Hon. J.A.W. GARDNER: —and their wellbeing. Can I ask the minister what role the government plans to play in supporting those APY artists through what is at the moment a difficult time, I expect, to fulfil their commercial potential moving forward?

The Hon. A. MICHAELS: Once the panel is stood up, I will be guided by and work with them as to what departmental support we can provide particularly to those artists. What you have touched on is absolutely key: being able to support them to tell their story and to be able to support them going forward. A lot of these art centres will continue with or without the APY Art Centre Collective; some incredible work is done at those art centres. They are members of the APY Art Centre Collective, but they are individual art centres, largely on their own, so they will continue. We just need to make sure we have the right support for these people to help them through it.

The Hon. J.A.W. GARDNER: You said you were looking to make an announcement in the next couple of weeks in relation to the investigators and the time frames?

The Hon. A. MICHAELS: And the terms of reference, yes.

The Hon. J.A.W. GARDNER: I move back to the grants line, and I have a couple of questions about public libraries. Can the minister confirm that the $20.7 million allocated for public libraries over five years will continue to be allocated? I think we have been operating in the last couple of years on a year-by-year recommittal of that funding, and obviously local government and others have been encouraging a commitment for the full period of the allocation as a minimum.

The Hon. A. MICHAELS: The member would be aware of the agreement that was entered into under the former government, I am sure, in terms of the public library services. For 2023-24, the operating grant, with approval of carryover, is $20.796 million. That is slightly higher than 2022-23, which was $20.71 million. As far as I am aware, and I do not know anything different, that is subject to further budget processes. As I understand it, that agreement was negotiated between the Libraries Board and the Local Government Association, and that will continue.

The Hon. J.A.W. GARDNER: Minister, I think the agreement is understood to be over five years, but I think that the advocates for public libraries have been seeking confirmation for a multiyear agreement in terms of not just being confirmed year to year. Last year, you confirmed it would be for another year. When asked by the member for Heysen, you said:

The funding is there for 20.7 for the 2022-23 year. Given that it is subject to future state budgets, there is nothing further we can confirm at that stage for the board.

Are you in a position to give comfort that that $20.7 million as a bare minimum is guaranteed going forward?

The Hon. A. MICHAELS: I think the usual process of letting the budget process flow through is one we will continue with.

The Hon. J.A.W. GARDNER: Will the government allocate funding for a dedicated digital literacy program that is not funded out of the $20.7 million allocation? I suppose a different way to ask is: will the government consider allocating funding for a dedicated digital literacy program in addition to the $20.7 million?

The Hon. A. MICHAELS: The Libraries Board will allocate their resources according to what they think are priority projects, so I will leave it to them to decide how they allocate that, including that kind of project. I do not have any information on that particularly.

The Hon. J.A.W. GARDNER: So that would be out of the $20.7 million, if the Libraries Board so chooses. Will the government continue the current and past practice of funding for public libraries and support for the OneCard network remaining separate from funding for the State Library, as is the case in these budget papers?

The Hon. A. MICHAELS: Yes, they are separate components.

The Hon. J.A.W. GARDNER: Thank you. I am told that it will be of comfort. I move to targets, back to the priority, policy and strategy outcomes target we were on before. Is the minister working on any legislation to be delivered in relation to the South Australian arts sector and, if so, to what purpose and when?

The Hon. A. MICHAELS: Yes, it was an election commitment to make sure we are enshrining how arts are valued across South Australia. Work is currently underway led by—I think Arts SA is doing some work on it with Creative Industries. That work is being done. I am not sure I necessarily have a date, but we are working on it at haste.

The Hon. J.A.W. GARDNER: Do you have a time for when the department has been requested to provide us with a bill for introduction into the parliament?

The Hon. A. MICHAELS: I do not have a time at this stage.

The Hon. J.A.W. GARDNER: I go to page 29, where there is a reference to Country Arts SA. It is a relatively straightforward question: does Country Arts SA still manage the Hopgood Theatre? What has the government done to rebuild the Hopgood? I think there was a change to the budget allocation that was originally intended to go to the council.

The Hon. A. MICHAELS: I might take that on notice. Country Arts is managing it at the moment; I am just not sure exactly for how long that agreement is. The Hopgood Theatre itself is run out of the Department for Education, so they make those arrangements. I will take it on notice how long that continues.

The Hon. J.A.W. GARDNER: On grants and subsidies on page 28, last year we discussed that there was a notional allocation for departmental efficiencies of about $2.9 million, I think it was, indexed per year to the arts program. At that stage, the minister and Mr Woolhouse had not yet determined how that burden would be allocated. Are you able to now identify what specific measures made up the $2.93 million efficiency in 2022-23, and was it achieved?

The Hon. A. MICHAELS: Sorry, can you clarify the question? What made up the two point—

The Hon. J.A.W. GARDNER: Well, there are two questions, I guess. The first one is: did you succeed in achieving the efficiencies that were applied to the program and, secondly, how?

The Hon. A. MICHAELS: Yes, that was achieved. Savings were allocated proportionally across the budget, including statutory authorities and major organisations that received their share of the savings. For arts statutory authorities and major organisations that have funding agreements with the National Performing Arts Partnership Framework, savings are met through the withholding of indexation adjustments. That has been past practice as well. Each of the boards and governing authorities determine how they have achieved their savings through the last financial year as part of their processes. In terms of whether it has been achieved, I understand it has.

The Hon. J.A.W. GARDNER: The minister said, I think, there was some shared by statutory authorities and major organisations, and presumably within the department as well—I may have missed that. Are you able to provide a breakdown of how much was carried by the department and how much by each of the statutory authorities and major organisations?

The Hon. A. MICHAELS: Can I take that on notice?

The Hon. J.A.W. GARDNER: Certainly. Can I ask specifically, though, about the department burden. How did the department meet its portion of the savings task? If you are able to provide me a number at least with the department one, that might assist.

The Hon. A. MICHAELS: We will take that on notice particularly around the numbers. I do not know if either of you want to add anything at this point in time.

Mr WOOLHOUSE: While we have taken the numbers on notice, as to the method, you were asking about how we did it within the department. Was that the question?

The Hon. J.A.W. GARDNER: Yes, how much of the efficiency, how much of the $3 million was allocated to the department itself as opposed to the organisations, and how did the department achieve those efficiencies, whether it was through staff cuts or buying fewer Tim Tams or however you did it? I do not know the quantum of the allocation, so it is possible it would be a significant task or a smaller task, and if you have taken that on notice I will look forward to the answer. My recollection is that that $2.9 million was indexed each year, so as to the way that those efficiencies have been achieved, do they then repeat in the future years so that there are no further efficiencies that have to be found?

The Hon. A. MICHAELS: For this year's budget, there are no new savings, which is good news. In terms of prior years, they do get indexed along the way. For example, the 2022-23 budget has savings in this current 2023-24 year of $3.185 million, but if we look back to the 2019-20 budget the current impact on 2023-24 is savings of $6.376 million. The 2018-19 budget, of course, was a big hit, rolling forward into 2023-24 indexed it is a $9.666 million hit. So those are coming through from prior years into this current year, but pleasingly no new savings targets in this current state budget which is excellent news.

The Hon. J.A.W. GARDNER: The 2017 Mid-Year Budget Review was a doozy; I am sure you will enjoy the reading. Can I ask, though, for clarification. If the efficiencies that have been set out in last year's budget and previous ones that have been achieved, that means that the work of Mr Woolhouse and others in finding where that money comes from at least in the department's section is done and there are no further challenges to meet those efficiencies?

The Hon. A. MICHAELS: The department says they have worked through their savings.

The Hon. J.A.W. GARDNER: It might be an opportunity to move to DIIS.

The Hon. A. MICHAELS: At the table with me is Adam Reid, Phuong Chau and Callan Markwick, and hopefully Bec Bates is behind me; I also have Martin Smith and DPC behind them.

The Hon. J.A.W. GARDNER: Going to Budget Paper 4, Volume 3, page 174, explanation of significant movements, last year we discussed that there was a notional allocation of department efficiencies of $3 million to the department, but I think Mr Reid indicated at the time he had not yet determined how much of that burden would be borne by Creative Industries. The dot point at the bottom of page 174 identifies $1 million for this program in operational efficiencies. Can the minister confirm if that $1 million comprises the final expectation of this program or if there are further efficiencies required to be achieved by this program?

The Hon. A. MICHAELS: The efficiencies have been achieved in that way. You will see with the FTE numbers that nothing has really directly fallen into that program, if I am answering that correctly, but it is the allocation of overheads that has helped achieve that. Mr Reid might want to add to that.

Mr REID: The member might know that there is an allocation of overheads, including FTE overheads corporate, to each program within the budget papers. The $1 million has actually been allocated from a reduction in corporate overheads achieved through that program, so there are no further efficiencies allocated in here. There is a small savings allocated in 2023-24 associated with St Paul's Creative Centre.

The Hon. J.A.W. GARDNER: You will have to forgive me: different departments use different language to describe different things. When you say 'corporate overheads', can you clarify what that might mean for somebody who has not been working in DIIS?

Mr REID: Across the portfolio, we have policy areas. We have corporate communications, we have finance services, we have procurement services, etc. All the staff and corporate functions are allocated across all the portfolios within our allocation, so there is no separate program structure for those parts of our agency. They are allocated across each program. When we reduce our corporate functions, they play out in reductions across each of these programs.

The Hon. J.A.W. GARDNER: To clarify, there were some staff cuts to the department, and it is assumed that a portion of their work would have been servicing this program and so this is a notional reduction to this program, but nobody from within the Creative Industries program in DIIS has lost their role because obviously they were doing important roles. Thank you for that.

Regarding the savings task that you identified in relation to St Paul's—I am not sure if that is specifically identified here—can I ask how much that achieved in terms of saving, and is that a net figure, given that I think support has been provided to MusicSA and potentially other bodies as well in new locations?

The Hon. A. MICHAELS: Total savings in reallocating St Paul's budget is $1.132 million. In 2023-24, there are savings of $149,000 in relation to St Paul's.

The Hon. J.A.W. GARDNER: Apart from MusicSA, have the other organisations that were in St Paul's that had been receiving some support from the government all been relocated?

The Hon. A. MICHAELS: They either have been or are about to be. I think they all have been, actually. Some have moved to The Mill, some have gone to Light. Some of the sound equipment, for example, has gone into the Mercury; that has now been revamped. That work has all happened. I think we move out of St Paul's by September this year.

The Hon. J.A.W. GARDNER: And there are no other efficiencies that remain to be achieved in this program?

The Hon. A. MICHAELS: No.

The Hon. J.A.W. GARDNER: Last year, the minister and the chief executive confirmed that investment agreements had been confirmed with the Jam Factory and the SA Film Corporation until the middle of next year—mid-2024—and the Film Festival until the middle of 2025, so they would be quarantined from any efficiencies. Given what the minister has just said about no further efficiencies to be found in this budget at least, is she in a position to provide reassurance to the Jam Factory and SAFC, who have less than a year to go on their agreements, that those future years from the middle of next year will not be subject to cuts or efficiencies?

The Hon. A. MICHAELS: That is right, and we anticipate entering multiyear funding agreements without any further savings allocated to them.

The Hon. J.A.W. GARDNER: In relation to the departmental arrangements, this time last year the minister was contemplating whether or not machinery of government changes might be needed or whether she was happy having Creative Industries within DIIS and the arts and cultural program within DPC. Has that matter now been resolved? I assume there will be no change.

The Hon. A. MICHAELS: No, that is still under active consideration.

The Hon. J.A.W. GARDNER: How active?

The Hon. A. MICHAELS: Reasonably active.

The Hon. J.A.W. GARDNER: It has been a while now. While we are on the Film Corporation, there is a specific reference on page 173, right at the top. Did the government consider making a bid for Mortal Kombat II and, if not, why not?

The Hon. A. MICHAELS: The SAFC Board would be responsible for that and I do not think they did. What we have done in the last financial year is the partnership with ABC and SAFC. I think that was a total of $5.2 million for that work across the forwards. That, including things like Beep and Mort, which I think the member might have gone to have a look at being filmed—I certainly did—

The Hon. J.A.W. GARDNER: I met Beep and Mort before they were on telly!

The Hon. A. MICHAELS: You should have got their autographs. In terms of what SAFC spends its funding on and its investment fund on, it is up to them, but I do not believe that has happened. I think there is some really good work in the pipeline for SAFC, not only with their existing funding but with the additional ABC funding. We also understand that Mortal Kombat II is interested in different types of locations. I think they have gone up to Queensland with rain forests and things like that, which we do not have.

The Hon. J.A.W. GARDNER: Was there any approach from the SAFC to the minister, the department, or the government in any way, to support a bid for Mortal Kombat II?

The Hon. A. MICHAELS: Not to me, no.

The Hon. J.A.W. GARDNER: To anyone else in government?

The Hon. A. MICHAELS: We understand not, no.

The Hon. J.A.W. GARDNER: Will you check with your colleagues?

The Hon. A. MICHAELS: Mr Reid says no. If that is inaccurate, we will correct the record, but I believe not. We can ask Ms Croser herself if there is anyone else that we are not aware of that she might have approached.

The Hon. J.A.W. GARDNER: In relation to Highlights 2022-23, on the same page, there is reference to:

Supported the South Australian music industry to recover from the impacts of the COVID-19 pandemic through MDO programs, and successfully implemented and delivered the suite of grant programs under the See It LIVE package to support the state's live music industry.

Can the minister confirm whether any funds remain in any of the grants programs within the government's $10 million live music package?

The Hon. A. MICHAELS: Yes. What has gone out the door is the million dollars in the venue upgrade grants: 154 grants were provided under that stream. There were 85 event grants supporting activity through 2022 and 2023 at $1.5 million. There was the Royal Show half a million dollar grant that went out to get live music back to the Royal Show. That supported almost 500 individual artists perform at the Show last year, which is fantastic.

The e-vouchers, a little bit over a million dollars has been redeemed: 2,628 e-vouchers are anticipated to be redeemed by 30 June, I think that figure is. So there is some of that funding still to go through and we are seeking carryover for that to continue that in the 2023-24 year of just under a million dollars.

The Hon. J.A.W. GARDNER: To clarify, that is about $3.75 million of the $5 million in grants that have been spent. From what the minister just said, was that a $1.25 million underspend in the e-vouchers program?

The Hon. A. MICHAELS: No, it was under $1 million.

The Hon. J.A.W. GARDNER: Is there any other underspend, or am I missing one of the grants programs? Maybe if I ask a different question—

The Hon. A. MICHAELS: There is $250,000 for the mental health support—

The Hon. J.A.W. GARDNER: Yes, that is right. So the only grants program that has an underspend is e-vouchers, and it is in the order of a million dollars or a bit under.

The Hon. A. MICHAELS: A bit under.

The Hon. J.A.W. GARDNER: So, overall, the expenses that have been spent are a touch over $4 million in grants. Has the minister received confirmation yet that the million dollars that is left in the e-voucher program will be carried over?

The Hon. A. MICHAELS: We have not gone through a carryover process yet, but that is what we will seek to do.

The Hon. J.A.W. GARDNER: Of the $5 million that sits within Treasury but is part of the program, for the COVID shutdown insurance fund effectively, has any of that been applied for or expended?

The Hon. A. MICHAELS: Well, we have not had any shutdowns, so no, but that sits, as you said, with SAFA and Treasury, so they are the best people to ask about that.

The Hon. J.A.W. GARDNER: To clarify, we have had $4 million expended of the $10 million live music package. Given that the live music industry had some confidence there would be a $10 million package one way or another, will the government consider repurposing any of the $6 million unspent towards other measures that will support the live music industry in South Australia?

The Hon. A. MICHAELS: I think we were quite clear going into the election as to what that commitment was and particularly what that $5 million was for. I think most live music venues would rather have had their doors open for the last year and a bit than having to call on us for some lockdown support, so I think we have been really clear as to what the package was. The grants, vouchers, etc., that have gone out the door have been really positively received. It was really needed for the industry. They did bear a big burden in COVID lockdowns, and it is good to see them getting back on track. I think there is some positivity in the sector at the moment, which is good.

The Hon. J.A.W. GARDNER: Minister, some might say they would be very pleased to have their doors open and receive the full $10 million of what was described as a $10 million package, but I am happy to move on, if you would like to.

The Hon. A. MICHAELS: Thank you.

The Hon. J.A.W. GARDNER: Going to grants and actually back to DPC, if that okay with you for the last minutes—

The Hon. A. MICHAELS: Are you sure? Do you have anything else for DIIS?

The Hon. J.A.W. GARDNER: I have about 20 minutes worth of DPC questions. I will see how I go.

The CHAIR: This question might be a really good question. It is probably your last one.

The Hon. J.A.W. GARDNER: Page 28 deals with grants. Page 29 deals with specific organisations. Does the minister have any plans to do something about the medium to long-term accommodation of the State Theatre Company, given what some would describe as utterly inappropriate conditions in which they are currently housed?

The Hon. A. MICHAELS: With thanks to Mr Hunter, who is sitting here on my left, I tasked DPC with doing some work on infrastructure more broadly, basically looking at what facilities were around in the market, what the needs were. That work has been done. What we heard from the sector itself in that work was that there seemed to be a need to investigate a potential hub-type arrangement for a number of those organisations.

Unusually, I thought, because of the lobbying that I have received on spaces, there actually seems to be a number of underutilised spaces, so I think being able to work out a way to make those spaces available more broadly is a really useful thing for us to be working on. Maintenance funding as well is something that was raised by those stakeholders.

All that work on the infrastructure planning is being done by Mr Hunter and his team, including obviously around the State Theatre Company and State Opera and where they are best located. That work is being done at the moment.

The Hon. J.A.W. GARDNER: Thank you. In relation to the Festival Centre, the minister earlier took on notice how much of the efficiency dividends will be borne by each of the statutory authorities and large organisations, but my understanding is that there has been in the order of a million dollars applied to the Adelaide Festival Centre to achieve this year. Given the Festival Centre is currently celebrating its 50^th anniversary, the minister, I think, and others have suggested there is some particular extra funding that might support those celebrations. How much has been provided to support the Festival Centre in its 50^th year celebrations and to what purpose has that funding been put or will it be put?

The Hon. A. MICHAELS: We will take that on notice, if that is okay with the member. I can say for the Adelaide Festival Centre the operating grant has increased for this 2023-24 year. It is $14.665 million, and in 2022-23 it was $14.515 million, so it is a slight increase for them, which I am sure they will use effectively and efficiently.

The Hon. J.A.W. GARDNER: If only they had their 2021-22 allocation again, I am sure they would be extremely happy.

The Hon. A. MICHAELS: Nobody wants COVID.

The CHAIR: The time allotted having expired, I declare the examination of Arts SA, Creative Industries and the proposed payments for the Department for Industry, Innovation and Science complete. The proposed payments of the Department of the Premier and Cabinet will continue after the break.

Sitting suspended from 11:46 to 12:00.