Department of the Premier and Cabinet, $377,085,000

Administered Items for the Department of the Premier and Cabinet, $20,505,000

Department for Innovation and Skills, $382,416,000

Administered Items for the Department for Innovation and Skills, $13,365,000

Membership:

Ms Pratt substituted for Mr Telfer.

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

Minister:

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

Departmental Advisers:

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

Ms J. Layther, Director, Arts SA.

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

Mr M. Smith, Director, Financial and Business Services, Department for Innovation and Skills.

The CHAIR: Welcome everybody. The portfolio is Arts SA and creative industries. I declare the proposed payments open for examination. I call on the minister to make a statement, if she so wishes, and to introduce advisers. I call on the lead speaker for the opposition to make a statement, if they so wish. I call on the members for questions.

The Hon. A. MICHAELS: I want to introduce Mr Steven Woolhouse, Executive Director of Communities and Corporate, on my left; and Ms Jennifer Layther, Director of Arts South Australia, on my right. Behind me I have Becc Bates, who is the Director of Creative Industries at DIS, and Martin Smith, Director of Financial and Business Services at DIS.

If it pleases the members, we might start with the arts questions and go to DIS when Mr Reid can come through from the other committee and then, if there is time, go back to Arts SA questions, if there are any. I do not need to make an opening statement other than to say that I am thrilled to be able to be the arts minister and implement our election commitments between creative industries and arts, with almost $30 million of extra money going into the sector, which I am really pleased to be able to get up and running very promptly, including our new live music grants that went live on Sunday. I am happy to take questions.

The Hon. J.A.W. GARDNER: I will go straight to questions. I refer to Budget Paper 4, Volume 4, page 29, grants and subsidies. I know that in Budget Paper 5 we have two new programs of new funding: $2 million for grants for artists and art organisations to develop new work and $2 million extra per year for the Fringe Festival. Can I confirm that the first year of that funding—that $4 million of funding to deliver on the election commitments—is reflected in this line of grants and subsidies that totals $111 million for the 2022-23 financial year?

The Hon. A. MICHAELS: Yes, it is.

The Hon. J.A.W. GARDNER: That is accounted for there, thank you. Although there is $4 million of new money in there, it is a dip from $135 million last year—the 2021-22 estimated result on page 29—and indeed even in the budget last year. The minister would be able to see $13.4 million of that cut explained lower on the page, but that still leaves a difference of $10.6 million. Can the minister explain what other grants or subsidies have been cut from last year to this year in order to account for that $10.6 million that is not accounted for lower down on the page?

The Hon. A. MICHAELS: It is largely explained within the budget itself in terms of arts recovery fund money pending. Regarding the Festival Centre Trust revenue from closing through the redevelopment, the injection of $7.7 million was put in there to support them through that closure for redevelopment. There was $5.5 million that dealt with rental arrangements with the Festival Centre Trust, with the transfer for the centre itself. Obviously, depreciation, $4.9 million, is out of those figures now that the transfer has happened. There was an arts recovery fund of $4 million, and Festival Plaza activation of $3 million once the redevelopment was finished and the plaza reopened. The Carrick Hill visitor centre was $1.5 million. That explains most of those figures.

The Hon. J.A.W. GARDNER: We will explore through some others whether there are any other matters. The net cost of the program overall drops from $128 million in 2021-22 down to $113.6 million in 2022-23, which I calculated is $14.7 million. Again, there is about $13 million explained lower down the page, but there is also the $4 million in new money supposedly coming in, so as far as I can tell there is a $5.3 million gap. I am wondering if that $5.3 million gap in the coming year represents a contribution from the arts program towards the DPC overall savings task of $14.5 million, or is that gap in addition to the overall savings task that is going to be applied?

The Hon. A. MICHAELS: Mr Woolhouse is suggesting it is the same explanation in terms of the reduction. A higher expenditure level in 2021-22 versus the 2022-23 year for all of those predominantly one-off items.

The Hon. J.A.W. GARDNER: Right, so we spent more last year. Is there a reflection in these budget lines of the arts program's contribution towards DPC's savings task?

The Hon. A. MICHAELS: Yes, there is in there.

The Hon. J.A.W. GARDNER: Can the minister identify what is the arts and cultural policy support program's contribution towards operating efficiencies for 2022-23?

The Hon. A. MICHAELS: The chief executives are currently working through all those efficiency dividends and where that is being allocated to. I am pleased to say that although essentially our expenditure as arts is about 40 per cent of DPC substantially less than that is being allocated as savings targets for arts, but the chief executive, Mr Damien Walker, is working through that and is coming to us with proposals as to how to meet those savings between all the various parts of DPC.

The Hon. J.A.W. GARDNER: I draw from that answer the inference that there is still some negotiation going on within DPC before a final allocation is to be locked in, and it may well be that the chief executive comes up with some bright ideas that will make the task easier, or they may not. If that savings task is to be reflected in these program summaries, there must be a notional allocation at least for 2022-23. My question is: what is that notional allocation for the coming year to the arts program?

The Hon. A. MICHAELS: It is an around 20 per cent figure, so half of what it really should be on a proportionate basis. I am really pleased that the Premier and Mr Walker have agreed to that. It puts us in a very good position for arts in terms of the efficiency savings that we will need to deal with, but in terms of how that happens and finalising all of that, that is with Mr Walker as the Chief Executive of DPC to work through how that happens.

The Hon. J.A.W. GARDNER: Given that the minister has identified that the notional savings task to the art program is about half of what it should be on a proportional basis of the overall savings within DPC, I can try to work that out on the back of an envelope, but would the minister prefer to provide us with a dollar figure?

The Hon. A. MICHAELS: I might get Mr Woolhouse to explain it.

Mr WOOLHOUSE: Yes, I can see you doing some calculations there. In terms of the notional allocation that is represented within the budget papers for this program, it is about $2.8 million.

The Hon. J.A.W. GARDNER: Two point?

Mr WOOLHOUSE: Yes, $2.89 million would be the allocation for 2022-23. That is the allocation for the budget papers that we have presented over that program. You were referring originally to the savings in Budget Paper 5, the Budget Measures Statement, and you have made previous reference to the $65.8 million over the forwards, and there is a number in there for 2022-23 of about $14½ million. In this case, your question is around what is the allocation that has been made against program 7, the arts and policy. The allocation for that purpose is about $2.89 million.

The Hon. J.A.W. GARDNER: Given that the allocation of efficiencies for DPC in 2022-23 is $14.5 million and arts is losing $2.89 million, which represents 19.9 per cent of DPC's efficiencies that are required, I note that the 2023-24 savings task of DPC is $20.6 million, which, if the arts portfolio is lucky enough to only be 19.9 per cent again next year, means the arts will be having to find $4.1 million in savings in 2022-23 and a similar number again in 2024-25, and then a reduced number, presumably, in 2025-26. Unless the minister believes the arts will have less of the cuts in the future years, that adds up to about $13 million in cuts to the arts budget over the forward estimates. Is that the notional allocation that has been provided?

The Hon. A. MICHAELS: Yes, the base is from 2.89, and an indexation from that, so those figures are not quite right. It is an indexation from the 2.89, bearing in mind the extra $16 million that is going in over the forward estimates for Fringe and for the arts grants.

The Hon. J.A.W. GARDNER: I am fairly sure, minister, that the Labor Party spent a lot of time talking about the $16 million they were adding into the arts budget over four years. I am not sure I recall many TV news stories about the $13 million that is being withdrawn. But that notwithstanding, we have $2 million going for new grants for artists to develop work, per year, and $2 million extra going to the Fringe per year, but elsewhere in the arts budget we have these efficiencies that are required.

The dominant area of expenditure in this budget—$111 million out of $127 million in the coming year—is in grants and subsidies. My question is whether grants and subsidies are going to be exempted from these operating efficiencies, or is this $16 million over four years coming out of the remaining $16 million per year?

The Hon. A. MICHAELS: The grants from the organisations, the small and medium organisations?

The Hon. J.A.W. GARDNER: On page 29 there is $111 million in grants and subsidies, so I imagine that includes the ongoing grants to organisations as well as grants programs and other subsidies provided. I am wondering if that budget line is exempt or is there a subset within that that is exempt from these savings?

The Hon. A. MICHAELS: The arts organisations program is not facing any efficiency dividends and there is new money of $1 million of our $2 million going straight into that program. We are working through the extra million dollars to make sure it suits exactly what the arts organisations need and want.

The Hon. J.A.W. GARDNER: To be clear, when you say the arts organisations grants, we are talking about things like the money that goes to the Art Gallery, the Museum, festivals, Carrick Hill?

The Hon. A. MICHAELS: No, they are statutory organisations. I am talking about money that goes to Restless Dance, the string quartet, all these small and medium independent organisations.

The Hon. J.A.W. GARDNER: If small to medium organisations' grants are quarantined from any of these efficiencies, are any of the statutory authorities I was just going through exempted as well or are they going to be making a contribution over the four years?

The Hon. A. MICHAELS: They will be making a contribution, but the new money that is being allocated is not part of that efficiency dividend. Mr Woolhouse might want to explain that further.

Mr WOOLHOUSE: The savings that are notionally allocated will be applied against the existing net cost to service that already existed. Essentially, at this point it is across the board. As we said, we will work through the detail as to where in particular it will be allocated but, notionally, it is allocated against grants and subsidies as the $111 million line you have identified. What is not included in the savings allocation is in the new funding that is allocated. Does that clarify that?

The Hon. J.A.W. GARDNER: To be clear, as I understand it the new funding is a $2 million grant that is going to the Fringe for certain purposes and a $2 million new grants program that will go to artists developing new work. That is clearly quarantined, as new money provided. I am trying to establish what that leaves. I think the minister's earlier answer was that the small to medium companies' grants will be exempt, but is the funding for, say, the State Theatre exempt from the savings task?

The Hon. A. MICHAELS: The savings are going to be applied across all the grants and subsidies. We are working through the detail of where that might lie.

The Hon. J.A.W. GARDNER: Your answer was yes, but then you said, 'We are working through the detail and it will play across everyone.' So I just—

The Hon. A. MICHAELS: Other than the small to medium, and not to the new money either. That is put in the budget. So $16 million over the forward estimates.

The Hon. J.A.W. GARDNER: I understood that the State Theatre was not one of the small to medium grants recipients we talked about; I understood that it was a statutory authority, but I could be mistaken. Is the State Theatre guaranteed to have no cut applied, or could they be part of that efficiency detail that is still being worked through?

The Hon. A. MICHAELS: They will most likely be part of that efficiency.

The Hon. J.A.W. GARDNER: Can I ask the same question in relation to Country Arts SA, the Art Gallery, the South Australian Museum, the Adelaide Festival Theatre, the State Opera?

The Hon. A. MICHAELS: They are all in the same boat.

The Hon. J.A.W. GARDNER: In relation to the Adelaide Fringe, while it is getting a $2 million grant in new money for a certain purpose, it already receives a fairly substantial grant from government. Is that existing grant subject to potentially being included in the efficiency dividend?

The Hon. A. MICHAELS: Yes, that is. I am not sure how to explain it in terms of the efficiency and the indexation. I will say it is going through the same process.

The Hon. J.A.W. GARDNER: What proportion of the grants to statutory authorities does the Fringe's existing grant comprise? Maybe I could just ask a simpler question: what is the quantum of the existing grant to the Adelaide Fringe?

The Hon. A. MICHAELS: The total is $4.33 million: existing is $2.33 million and our additional $2 million.

The Hon. J.A.W. GARDNER: But of that $4.33 million, notwithstanding that the additional $2  million is exempt, the 2.33 million it was getting before is subject to part of that efficiency dividend. Thank you. In relation to grants programs for artists, how much of the budget do they currently comprise? What is the dollar figure on those grants programs at the moment? What grants programs for artists exist within Arts SA?

The Hon. A. MICHAELS: It is $10.3 million.

The Hon. J.A.W. GARDNER: Does that body of funding have an exemption from the efficiency process or will that be making a contribution as well?

The Hon. A. MICHAELS: In simple terms, everything is in, and we are working through where it needs to fit.

The Hon. J.A.W. GARDNER: If 19 per cent of the efficiencies required of DPC are from arts, and there is $3 million or thereabouts to be found from this year, do you have any idea how much of that $3 million savings will be applied to the grants programs for artists? Maybe I will ask that a different way. Are any of the artists' grants, the grants to individual artists, going to be exempt from this savings task or is all of that $10.3 million worth of grants on the table for efficiencies?

The Hon. A. MICHAELS: It is all on the table. Additional money is going in, and the efficiency dividends will be worked out through the chief executive. That might not affect any of the grant programs at all; however, we are still working through all of that. Mr Woolhouse, do you want to add anything?

Mr WOOLHOUSE: I have not much further to add other than the savings we have allocated against the program line into the budget, as you can see on page 29. When you were referring back to it is 20 per cent of the savings task for the department, it is based on that number because the number we have allocated is the $2.89 million. That happens to be about, as you said, 19 per cent or so of this year's number, but the arts number will stay the same with the indexation that has to be applied, and therefore that is the number that we now work through. How are we going to allocate specifically against all the different program lines, supplies and services, and so forth? That is the element that we are working through and developing in the 2022-23 state budget for the department and Arts SA program.

The Hon. A. MICHAELS: I cannot at this stage give you a direct answer to that question.

The Hon. J.A.W. GARDNER: I understand, but you will understand my interest given that the net costs of providing services, the net costs of the program, is $113 million. The grants that you provide and subsidies you provide are $111 million, and you have a $3 million savings task, so clearly there is going to be some savings coming from somewhere, assuming that this is the limit of the savings required, again noting that they go up substantially next year.

I have some other questions as well, if you would like to move on to them, on the same budget line. The Illuminate Adelaide festival had three years of funding confirmed as I understand it. The second year of that festival begins in the coming days, and I know that we are all looking forward to it. Can the minister confirm that the third year of Illuminate's funding remains guaranteed for 2023, and indeed is the government looking to provide support to Illuminate as an annual festival after 2023?

The Hon. A. MICHAELS: Yes, that is coming through the Tourism Commission.

The Hon. J.A.W. GARDNER: Can I go then to page 28. In this area the other election commitment that the minister is working on is listed in the targets. It is in relation to working security, what many in the sector would describe as precarity. The target includes:

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 describe what form that work will take that the department is undertaking as part of this target?

The Hon. A. MICHAELS: Yes. The Arts SA staff are consulting with industry sectors that already provide portable long service leave schemes to see what the best way of implementing that policy is. I am waiting for Arts SA to do that work and come back to me with a way we can progress that policy in the best way possible, and if we can do something to help the work insecurity that artists face we will be very keen to see that implemented as quickly as we can.

The Hon. J.A.W. GARDNER: When you said Arts SA staff, presumably within the offices within this program. Will they be preparing a report, a public report, or are we talking about a brief for the minister? Are we talking about the devising of a program or legislation?

The Hon. A. MICHAELS: Yes, the first step is a brief to me.

The Hon. J.A.W. GARDNER: Given that this was obviously a commitment that Labor offered to the sector, people who were interested in this matter when determining how to vote before the last election, can the minister advise what goal needs to be achieved in order for her to consider that Labor's election commitment would have been met?

The Hon. A. MICHAELS: To address the issue of work security for artists.

The Hon. J.A.W. GARDNER: But when you say 'address the issue', are we talking about a project completed or is the work producing a brief for the minister—what was promised?

The Hon. A. MICHAELS: No, beyond getting a brief, yes, actually implementing it. A program will be implemented.

The Hon. J.A.W. GARDNER: So there will be the implementation of a program to address the question?

The Hon. A. MICHAELS: Correct, yes.

The Hon. J.A.W. GARDNER: Do you have a time frame for when you would like to achieve that?

The Hon. A. MICHAELS: We are probably looking at the next financial year.

The Hon. J.A.W. GARDNER: In the 2023-24 financial year or 2022-23 when you say 'the next financial year'?

The Hon. A. MICHAELS: I would like to see 2022-23.

The Hon. J.A.W. GARDNER: Thank you; look forward to it.

Mr TEAGUE: Page 29, Volume 4, in the expenses table, a question in relation to allocation of public libraries. Can the minister confirm that the $20.7 million allocated for public libraries over five years will continue to be allocated?

The Hon. A. MICHAELS: At 20.7 or allocated?

Mr TEAGUE: I might get to that. At 20.7, for a start.

The Hon. A. MICHAELS: So 2022-23 has been confirmed at 20.7 and we have not confirmed beyond that.

Mr TEAGUE: In light of that, is there any present consideration to adjustments to the funding agreement going forward? Clearly, I can indicate that some in the local government sector have been requesting consideration of indexation and/or a dedicated digital literacy program and/or innovation grants program caught up in consideration of that going forward.

The Hon. A. MICHAELS: The agreement has just been entered into between the Libraries Board and LGA for public libraries. That is the first agreement that has gone direct between those entities without the department being party to that. 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 this stage for the board.

Mr TEAGUE: In terms of the agreement then, minister, nothing that could give comfort to the LGA in relation to the agreement—they are just going to have to wait and see, are they?

The Hon. A. MICHAELS: Beyond the current agreement, bearing in mind I think the state government contribution is roughly about 20 or 30 per cent of the total public libraries. I think it is only about 20 per cent, the rest is coming from LGA. Presumably, whatever they do need to deal with, given it is only 20 per cent of their total funding, I hope they will be able to manage and we will deal with it in future years, but the agreement has been signed for 2022-23.

Mr TEAGUE: A question in relation to school community libraries: are there any changes that the government anticipates to funding arrangements for school community libraries as a result of the current review underway by the Libraries Board?

The Hon. A. MICHAELS: That might be education—is that what you mean?

Mr TEAGUE: Might be.

The Hon. A. MICHAELS: Otherwise we will take it on notice and find out.

Mr TEAGUE: Glad to give the opportunity. To the extent that it is relevant, you will take it on notice?

The Hon. A. MICHAELS: Yes.

Mr TEAGUE: Still at Volume 4, page 29, and in that dominant row, grants and subsidies, in relation to the Adelaide Festival: I understand there has recently been an expansion in the senior staffing profile of the organisation, with the addition of associate artistic director. Given it has been announced that Ruth Mackenzie, the new artistic director, will be commencing her role in the middle of this year and it has been reported that 80 per cent of the planning for the 2023 Festival was already completed in March, what need was identified by the board or the government that determined the requirement for this role to be created?

The Hon. A. MICHAELS: I might get Ms Layther to explain. She understands it, but otherwise we will take it on notice.

Ms LAYTHER: My understanding is that it could be related to the changeover from one director to the next, where there are people on contracts exiting the Festival with new directors being brought in. It has not been uncommon in the past to have two directors working in parallel. In the case of Neil and Rachel, we already had two working in a partnership with a new one coming in, and there is a time of overlap. I understand that is what the question might relate to.

The Hon. A. MICHAELS: Is there any clarification we can take on notice, or does that answer your question?

Mr TEAGUE: If that is the nature of it, then that is one thing. If there is an ongoing role, then I would be glad if you could take that on notice. Perhaps it might be necessary, in any event, to take on notice the quantum of the additional cost that is created by that role, whether temporary or permanent.

The Hon. A. MICHAELS: We will take that on notice.

The Hon. J.A.W. GARDNER: Can I take us to page 15, which has the investing expenditure summary. I am wondering if the minister is able to provide the time lines and expenditures for the projects that are within her purview, which I assume to be the Adelaide Festival Centre Precinct, the arts storage, the Cultural Institutions Collections Storage and the Tarrkarri Centre for First Nations Cultures. Can that be provided in terms of time lines and expenditure? What are the budgets for the coming years beyond the 2022-23 year? I would be happy to have that now or on notice, however the minister prefers.

The Hon. A. MICHAELS: The completion of the Festival Centre, did you say?

The Hon. J.A.W. GARDNER: Yes.

The Hon. A. MICHAELS: That is June 2022, and for the Cultural Institutions Collections Storage it is June 2024. What were the other ones you referred to?

The Hon. J.A.W. GARDNER: The Tarrkarri Centre

The Hon. A. MICHAELS: Tarrkarri is June 2025—the estimated completion is in that quarter. Tarrkarri is estimated I think for some time in March or April.

The Hon. J.A.W. GARDNER: Just to clarify, we are confident that we are still looking at the middle of 2024 for the Cultural Institutions Collections and by the middle of 2025 for Tarrkarri. Is it possible to have a breakdown of the budget to be spent in each of those relevant financial years, and can I have the minister's confirmation that they are on track?

The Hon. A. MICHAELS: Yes, I will take that on notice.

The Hon. J.A.W. GARDNER: Thank you. I note that our friends from DIS have arrived. Shall we move to the DIS questions now and come back to the questions about the arts plan?

The Hon. A. MICHAELS: Yes.

Departmental Advisers:

Mr A. Reid, Chief Executive, Department for Innovation and Skills.

Mr A. Dunbar, Executive Director, Innovation and Science, Department for Innovation and Skills.

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

Ms P. Chau, Executive Director, Performance and Business Operations, Department for Innovation and Skills.

Mr M. Smith, Director, Financial and Business Services, Department for Innovation and Skills.

The Hon. A. MICHAELS: I will introduce the new advisers surrounding me. Mr Adam Reid is now back from the other estimates committee. Thank you; it is such a busy day for you. Mr Andrew Dunbar is the Executive Director, Innovation and Science, DIS; and Ms Becc Bates is Director, Creative Industries, DIS. Sitting behind me, we also have Ms Phuong Chau, Executive Director, Performance and Business Operations, DIS; and Mr Martin Smith, Director, Financial and Business Services, DIS.

The Hon. J.A.W. GARDNER: The advisers brought their own budget papers with them; I am having to jump between a few. Can I go to Budget Paper 4, Volume 3, page 180—my pre-prepared notes say so, and hopefully that is correct—the explanation of significant movements. There is a dot point under that saying the notional allocation of departmental efficiencies from 2022-23 is $3 million. Given that page 87 of Budget Paper 5 outlines that there are similar efficiencies required of the overall department in each of the forward years to 2025-26, are you able to provide a notional allocation of what will be required of the creative industries program for the department to meet this task in each of those years?

The Hon. A. MICHAELS: That is being worked through by the chief executive, who is dealing with a number of balls being juggled at the moment with his department.

The Hon. J.A.W. GARDNER: I understand different departments are at different stages in allocating their notional allocations. I am wondering whether this department is any further along in that allocation for future years than perhaps DPC was.

The Hon. A. MICHAELS: I do not believe so. Mr Reid, you might answer that question.

Mr REID: We have provided a notional allocation for the 2022-23 budget year for the purposes of the Agency Statements, but beyond that we are still working through the allocations across the programs in the entire department.

The Hon. J.A.W. GARDNER: I do not think there is a reference elsewhere to it, so I assume that, although this part of the department, the program area, is assigned to this minister, we are not looking at any machinery of government changes to move it to within DPC. Will it remain with two separate departments under the arts ministry at this stage?

The Hon. A. MICHAELS: At this stage, but I am considering where is the best home to deal with the needs of the arts ecosystem in South Australia. We are looking at that, and I am getting some advice on that at the moment.

The Hon. J.A.W. GARDNER: The net budget for the program is $18.202 million. I note that grants and subsidies within that program are $16.597 million, a very significant bulk of that, notwithstanding a modest revenue. If there are $3 million of savings to come, can the minister identify the reductions in grants that will be provided to each of the key organisations supported by this program, they being the SA Film Corporation, the Adelaide Film Festival and the JamFactory? You will let me know, I am sure, if there are others.

The Hon. A. MICHAELS: The Film Festival is getting an additional $2 million to annualise, so half a million dollars a year to annualise. Of the $10 million live music package, $5 million is actually sitting in Treasury. You cannot see that in those figures because it is for the event cancellation fund. The rest of the $5 million is there, and $1 million of it has been allocated to 2021-22 because the support act money, $250,000, is out the door by 30 June, and $750,000 of some of those grants—I think it is the new improvement grants, largely, and a portion of the See It Live grants—is out the door.

So $1 million is showing in the 2021-22 figure, $4 million is in the 2022-23 figure and the $5 million cancellation fund is sitting in the Treasury numbers. For a couple of those organisations, I think SAFC's agreement is until 2024 and the Film Festival has an agreement until 2025.

The Hon. J.A.W. GARDNER: From that, I understand that the minister in her answer prior to that last part was talking about new funding that is coming in for new purposes. The area I am interested in exploring is the existing effort of this program area on the work that was being done prior to the election. Of that, $3 million has been allocated for departmental efficiences. So when the minister says the SAFC has an agreement until 2024 and the Film Festival until 2025, can I take from that that those two bodies will have those agreements honoured up until the end of the agreements?

The Hon. A. MICHAELS: Correct.

The Hon. J.A.W. GARDNER: And at the end of that agreement, in 2024 and 2025 respectively, the government will offer a new agreement that may or may not reflect the departmental efficiencies that are required at the time?

The Hon. A. MICHAELS: Yes. That is still to be determined.

The Hon. J.A.W. GARDNER: That was the Film Corporation and the Film Festival. The JamFactory was the other organisation I asked about.

The Hon. A. MICHAELS: It is 2024 for the JamFactory.

The Hon. J.A.W. GARDNER: So the JamFactory, SAFC and Film Festival have their funding protected until the middle of 2024, or 2025 in the case of the Film Festival, and the Film Festival is to have that extra $500,000 per year. What other programs, in terms of grants, are there within this program area?

The Hon. A. MICHAELS: The Music Development Office (MDO) is in there. They are largely music grants. There is the Robert Stigwood Fellowship project, contemporary music organisations funding that helps groups like Music SA, and there are some other smaller projects in that as well.

The Hon. J.A.W. GARDNER: Within that, outside of the new money coming in as identified in Budget Paper 5, are any of those existing grants, or the fellowship or the contemporary music organisations funding, quarantined from the departmental efficiencies or are they set to make a contribution towards that task?

The Hon. A. MICHAELS: The chief executive is tasked with doing all of that work and will come back to me with what his suggestions are.

The Hon. J.A.W. GARDNER: I am happy for you to take this on notice, but can we get a breakdown of how much is provided to each of those separate streams?

The Hon. A. MICHAELS: We can take that on notice, yes.

The Hon. J.A.W. GARDNER: Within that, was it music grants for artists that the minister mentioned before?

The Hon. A. MICHAELS: Yes.

The Hon. J.A.W. GARDNER: In relation to that one, if you have the number now, can I ask how much that is?

The Hon. A. MICHAELS: It is 4.7 for total MDO grant programs. It is a question we may need to take on notice because of the breakdown.

The Hon. J.A.W. GARDNER: But to be clear, those programs are all within the gamut of people who are going to make a contribution towards the $3 million in savings.

The Hon. A. MICHAELS: Potentially, but the chief executive has not done that work to come back to us on that.

The Hon. J.A.W. GARDNER: The Adelaide Film Festival, as we said before, is receiving an extra $500,000 per annum to support its annualisation. Is that money being provided directly in addition to their existing grant or is there a different mechanism in place to expend that money?

The Hon. A. MICHAELS: We are varying the existing agreement to give them that extra money.

The Hon. J.A.W. GARDNER: If you have it on hand, what does that make the total grant for the Adelaide Film Festival this year and next year?

The Hon. A. MICHAELS: The current agreement is for $4.909 million until June 2025, and there is the extra $2 million on top of that.

The Hon. J.A.W. GARDNER: The spread of that money, I assume, is done annually and the Film Festival organises itself accordingly, okay. The minister is confident that the Adelaide Film Festival now has sufficient resources to fulfil its annualisation?

The Hon. A. MICHAELS: Yes. In fact, I got a call from the chair Tuesday night, I think. He is very excited about what that actually means in terms of some other announcements. I will not steal his thunder but he is very excited about what that annualisation means for their organisation and what they can do with the festival. There is some news to come.

The Hon. J.A.W. GARDNER: They obviously have that confirmed until the end of 2025, so it will not be until then that they will be asked to contribute to efficiencies, so I am sure they will be very happy. In relation to Budget Paper 5, pages 88 to 90, which is where we look at the music measures, can you advise whether the live music grants, the grants for venues and the live music mental health program are all to be rolled out through the Music Development Office or is there another mechanism being used?

The Hon. A. MICHAELS: It is all through the Music Development Office.

The Hon. J.A.W. GARDNER: And when will those grants be rolled out?

The Hon. A. MICHAELS: Apart from the cancellation fund, which is within Treasury.

The Hon. J.A.W. GARDNER: And, indeed, the Royal Show grant, presumably.

The Hon. A. MICHAELS: Correct.

The Hon. J.A.W. GARDNER: When will those grants be rolled out and details announced?

The Hon. A. MICHAELS: The voucher scheme and the grants opened on Sunday for registration. They will be rolled out through the rest of this calendar year. The support act money has gone or is about to go before the end of financial year and the Royal Adelaide Show money will be out the door by 30 June.

The Hon. J.A.W. GARDNER: Excellent. I am happy to move back to the DPC staff.

Departmental Advisers:

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

Ms J. Layther, Director, Arts SA.

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

Mr M. Smith, Director, Financial and Business Services, Department for Innovation and Skills.

The Hon. J.A.W. GARDNER: I apologise to the DPC staff for the inconvenience. I blame the leader of the house. Can I go to page 31 of Volume 4. Country Arts SA is one of the organisations that is listed on page 31. Country Arts SA, of course, currently manages the Hopgood Theatre. Is the government proposing that it will continue to do so, or is the government looking to transfer that asset to Onkaparinga council?

The Hon. A. MICHAELS: I think that is a question for the Minister for Education. It is a TAFE asset.

The Hon. J.A.W. GARDNER: Country Arts SA obviously has a funding line in terms of managing and running the Hopgood Theatre. Is there an allocation for the 2022-23 financial year within Country Arts SA, or future financial years, to continue to manage that asset?

The Hon. A. MICHAELS: That will be dealt with once the Minister for Education deals with the ownership of the asset. The Hopgood money has never come through the arts budget. It has been separately dealt with through Education, I assume.

The Hon. J.A.W. GARDNER: Country Arts SA's budget falls within arts, as I understand it, and I further understand that grants have been provided—I have some familiarity—from the education department to Country Arts SA for several years, in addition to the revenue generated by Country Arts SA, which it applies through its budget, which is part of the arts budget. Does that line still exist within the Country Arts SA budget?

The Hon. A. MICHAELS: I will take it on notice and come back to you.

The Hon. J.A.W. GARDNER: Is the government going to proceed with the upgrade to the Hopgood Theatre that was put on the table by the former government?

The Hon. A. MICHAELS: To the Hopgood? Again, I will get some notes from the education minister and come back to you.

The Hon. J.A.W. GARDNER: In relation to page 28, we are talking about highlights. One of the highlights is in relation to progressing implementation of recommendations to government in the Arts and Culture Plan South Australia 2019-24, which is an excellent highlight, providing much interesting material to the casual viewer of parliamentary estimates. (I am informed that there are thousands.)

One of the recommendations, section 9, is in relation to the Aboriginal arts and culture strategy, which in itself is another excellent document with many tasks assigned to it. I am wondering if the minister is able to advise the committee how Arts South Australia is going and whether it is continuing to deliver on the recommendations in the Aboriginal and Torres Strait Islander Arts Strategy for South Australia.

The Hon. A. MICHAELS: It is continuing with that work. The strategy was released in February this year, so that work is being done and that strategy is being implemented. There are no plans at this stage to change any of that. I do not know if Ms Layther wants to add anything.

Ms LAYTHER: Only that we are about to make an offer of employment to an Aboriginal person following a recruitment process into a dedicated Aboriginal role, because we believe that we need an Aboriginal person delivering that work. So that in and of itself is quite significant.

The Hon. J.A.W. GARDNER: There are four aspirations in the strategy and a number of more specific actions in the strategy. Regarding the officer who has just been identified and is about to be employed, will it be their task, or their task in conjunction with Arts SA, to enact the actions that are identified in the strategy? Let me ask a slight variation of the question if it makes it easier. Are there any actions that the government is not proposing to deliver on?

The Hon. A. MICHAELS: No.

Ms LAYTHER: At this point, no. It was always proposed that there would be an advisory committee that would support the prioritisation of that work, which will be undertaken in partnership with Aboriginal community members and existing funded organisations. It will be Aboriginal-led within the context of Arts South Australia and its grant and funding programs.

The Hon. J.A.W. GARDNER: Thank you for that. Some of the actions would not require financial provisioning, some of them would. Are there any funds that have been made available to deliver on this program, other than the employment of the new role that has been described?

The Hon. A. MICHAELS: Within existing resources, that work will be done.

The Hon. J.A.W. GARDNER: Has there been any draft budget within the DPC or within the program area to identify how much funding within existing resources over and above the 1 FTE that is being employed?

The Hon. A. MICHAELS: It is within the grant funding, so no, I have not received one and I do not think one exists.

The Hon. J.A.W. GARDNER: I will go to other aspects of the arts plan on the same budget line then, if I might. I was going to ask about recommendation 2.1, which relates to maintaining the existing grants funding structure and assessment processes, but we probably dealt with that in earlier questioning. I might skip ahead to section 4, which is a series of recommendations designed to develop and deliver a statewide digital access plan. This is something that has been talked about in the sector for a number of years. I am wondering if we can have any advice on how that statewide digital access plan and the recommendations therein are going.

The Hon. A. MICHAELS: We will partly answer as much as we can and we will come back to you.

Ms LAYTHER: There was a business case done to look into that whole area of digital access across the cultural institutions. There was funding allocated for a pilot project, which is happening at the moment, to train particularly volunteers—through the History Trust of South Australia, working with the collection of the Adelaide Festival Centre, the performing arts collection—to start that digitisation process. The institutions themselves, the library, the Museum and the Art Gallery, are continuing within a framework of digitisation to digitise their collections for access to the public.

The Hon. J.A.W. GARDNER: Right, sounds quite good. Can I ask a question in relation to recommendation 7. There are a couple of specific recommendations: 7.2 is to:

Devise a coordinated set of Arts and Culture targets across relevant ministries to support the delivery of programs achieving social outcomes and impacts from arts and cultural focused activity.

Does that remain a recommendation the government is supporting and proposing to deliver on?

The Hon. A. MICHAELS: We have not made any changes to that as yet, so yes.

The Hon. J.A.W. GARDNER: I am wondering how the minister has gone or does she intend to pursue those targets across relevant ministries? I am thinking of a couple of her ministerial colleagues and how they have received that suggestion and whether they have provided any response to the minister.

The Hon. A. MICHAELS: Not as yet; we have not done that work as yet.

The Hon. J.A.W. GARDNER: I look forward to hearing about it next year. In relation to recommendation 7.1, 'Develop a whole-of-government measurement framework', it particularly talks about the arts plan advisory group, which would include representatives from across government, and continuing to support the integration of the arts plan recommendations across government. Does that arts plan advisory group exist, or still exist?

The Hon. A. MICHAELS: Yes, it does exist.

The Hon. J.A.W. GARDNER: What is its status? Is it meeting regularly; is it continuing to do this work? How is it going?

The Hon. A. MICHAELS: We are due to have another meeting of that group. It meets roughly every six months. I have had separate conversations with a number of people on how we actually measure the value of the arts, and I would like to see some work done on that, particularly post-COVID. I think there is something beyond hotel night measurements and that sort of thing, something to really be able to measure the arts more fully in terms of what it contributes to our community. I have had those conversations as well.

The Hon. J.A.W. GARDNER: I could not agree more. I trust that when we are talking about measuring it beyond hotel nights we are not just talking about looking for dollar figures in different ways. You are talking about something broader and more—

The Hon. A. MICHAELS: Yes; more fulsome. There is much more contribution that the arts makes than a dollar figure.

The Hon. J.A.W. GARDNER: Section 11 talks about international engagement and 11.1 talks about the export and investment strategy, or at least recommends that one be developed for South Australia's arts and creative industries. The other two reference international students. How is this part of the program going? Does it remain a priority for the government?

The Hon. A. MICHAELS: Unfortunately, COVID has impacted on what we can do in that space. We expect to see that ramp up again now that people are moving across borders.

The Hon. J.A.W. GARDNER: I am sorry; I do not mean to be difficult but I am actually quite hard of hearing. I missed the last part of the answer.

The Hon. A. MICHAELS: As people are starting to move across borders, hopefully we will be able to see that work ramp up.

The Hon. J.A.W. GARDNER: With that in mind, and given the opportunities that are now being created for international travel, and we heard from the Minister for Tourism a couple of days ago about a couple of new air routes coming into Adelaide, will the minister commit to prioritising this work, particularly the development of an export and investment strategy, given the opportunities that may be created with increasing international travel in the coming year?

The Hon. A. MICHAELS: The tourism minister and I have met a couple of times on how our portfolios cross over and what we can do to improve that interaction, even from the perspective of bringing tourism into South Australia for arts and culture. That is high in our priority, and we are working really well together on that. That will be part of it.

The Hon. J.A.W. GARDNER: There are thousands of people—arts administrators and constituents from around South Australia—watching and some of them will be very interested in asking whether there is progress on recommendation 1.4, which relates to a business case for the viability of an acoustic venue. How is progress going in relation to that matter?

The Hon. A. MICHAELS: I can say that I committed to undertaking that work, so that money has been well spent to have that business case done. I think the report is due maybe December 2022; yes, at the end of this year.

The Hon. J.A.W. GARDNER: That is going through the Infrastructure SA process at the moment?

The Hon. A. MICHAELS: Yes.

The Hon. J.A.W. GARDNER: And we are expecting them to look at it in the second half of this year?

The Hon. A. MICHAELS: Yes.

Mr TEAGUE: One question, if I may, Chair.

The CHAIR: Yes. You do have a minute.

Mr TEAGUE: Again, I take the opportunity to thank the Legislative Council for its hospitality and indicate that I am relying on the technology provided by this council—

The CHAIR: This is the upper house; it is all a bit slower here.

Mr TEAGUE: In that sense I defer to the accuracy of the clock. I am at page 28, both highlights and targets. We can look at the dot points, but the highlight set out there is the contribution to the establishment of the Hans Heysen Museum celebrating Hans Heysen and his daughter Nora Heysen. In relation to the target for 2022-23 to continue that important work, can the minister indicate that the funding commitments by government are not going to be affected by operating efficiencies or other cuts, and that funding supporting that work is to continue?

The Hon. A. MICHAELS: It is commonwealth money through the Adelaide City Deal, so that will not be affected, and I think the project is due to be completed in 2023-24. We are at the design phase now, and construction milestones are estimated to occur in 2022-23 and 2023-24, so that project is happening in your electorate.

Mr TEAGUE: Should the foundation require more funds, then the minister I am sure will stand ready to assist, to whatever extent they may be asked.

The Hon. A. MICHAELS: I am sure I will be lobbied by the local member.

The CHAIR: Given the allotted time has expired, I declare the examination of the portfolios of Arts SA and creative industries completed. I, too, once again thank all of the public servants for their contribution to this process, also the parliamentary staff that have provided support, including Hansard, and of course our security who I always feel sorry for, sitting up there all of those hours having to listen to us.

I acknowledge the members as well, and I would acknowledge the opposition, and the respectful way they have gone about this process. It has certainly made the job of being the Chair very easy. Maybe a bit of colour and movement would have been good to get, but it certainly has been a fruitful enterprise, and I do hope the opposition was able to extract the information that they needed because it is an important part of holding the government of the day to account. With those words I lay before the committee a draft report for Estimates Committee B.

S.E. ANDREWS: I move:

That the draft report be the report of the committee.

Motion carried.

At 16:33 the committee concluded.