ADELAIDE FESTIVAL CENTRE TRUST (FINANCIAL RESTRUCTURE) AMENDMENT BILL

Second Reading

Second reading.

The Hon. P. HOLLOWAY (Minister for Police, Minister for Mineral Resources Development, Minister for Urban Development and Planning) (17:53): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation inserted in Hansard without my reading it.

Leave granted.

This government is committed to the long-term sustainability of the Adelaide Festival Centre, in recognition of the key role that it plays as a presenter of the best of our home-grown, national and international performing arts product, for the enjoyment and benefit of South Australians and our visitors.

Evidence of this commitment includes this government's investment of $8 million in the current refurbishment of the Dunstan Playhouse, as the next stage in a long-term process of revitalising the Festival Centre precinct.

CEO and artistic director of the Festival Centre, Mr Douglas Gautier, developed the Trust's new artistic vision, entitled New Directions. This was publicly announced in October 2006, and the government and community have enthusiastically embraced it. New Directions places a far greater emphasis on the development, marketing and presentation of suitable product for the Festival Centre and on customer relationship management, and focuses on the doubling of audience numbers over a five-year period.

We note that the Adelaide Festival Centre Trust's operating position over recent years has been adversely affected by the debts of the past – including the original $20 million building debt, which has remained on the Trust's balance sheet since the 1970s.

The Adelaide Festival Centre Trust has been running at a loss (inclusive of depreciation) for several years given its current financial structure and asset base.

As part of our strategy for future success, this government announced, in June 2007, the clearing of some $28 million in debt from the Trust's balance sheet.

The government is now looking at management options which would enable the Trust to focus on its core mission, as outlined in its Act, of 'encouraging and facilitating artistic, cultural and performing arts activities throughout the State', in particular to focus on managing the development marketing and presentation of its artistic vision. One way of achieving this would be to have another government agency take responsibility for the financial and strategic management of those Trust assets, such as land and buildings. Such an arrangement would see a transfer of assets within Government, with the Trust of course retaining the use of those assets for its purposes.

The government therefore proposes to amend the Adelaide Festival Centre Trust Act 1971 to enable a future transfer of Trust assets and liabilities, which would nevertheless remain within government ownership.

Such a step would allow the organisation to better realise Douglas Gautier's New Directions artistic vision, which is already beginning to show success. And it would enable the Trust to focus on the future with confidence, and for the benefit of all South Australians.

The Adelaide Festival Centre Trust Act 1971 makes provisions for the Festival Theatre and certain land to be vested in and belong to the Trust. It also foreshadows the later construction of drama facilities, being the Dunstan Playhouse, Space Theatre and amphitheatre. And the Act provides for the care, control, management, maintenance and improvement of the Centre and of all things necessary for, incidental and ancillary to such care, control, management, maintenance and improvement to be the responsibility of the Trust.

The Adelaide Festival Centre Trust (Financial Restructure) Amendment Bill 2008 removes references in the Act to property being vested in the Trust and imports a facultative provision enabling the future transfer of assets and liabilities via a proclamation issued by the Governor.

I commend the Bill to Members.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

3—Amendment provisions

These clauses are formal.

Part 2—Amendment of Adelaide Festival Centre Trust Act 1971

4—Amendment of section 4—Interpretation

This clause removes the definition of "the vesting day" and definitions of references to section numbers of land. The terms are removed as a consequence of the deletion of various provisions of the Act that use those terms.

5—Repeal of section 18

This clause deletes section 18 (section 18 currently vests certain real and personal property in the Trust).

6—Amendment of section 20—Objects, powers etc of Trust

The addition by this clause of the words "(subject to such arrangements as may be established from time to time for the occupation of the Centre by the Trust)" serves to emphasise that the future responsibilities of the Trust are those of occupier, not owner.

7—Repeal of section 23

This clause deletes section 23, an outdated section that enabled the Trust to assume the care, control and management of the Festival Theatre while the Festival Theatre was vested in the Council, pending its vesting in the Trust. The section had no more work to do once the Festival Theatre was vested in the Trust.

8—Amendment of section 24—Construction of Drama Facilities

The amendments effected by this clause ensure that, at such future time as the Trust becomes occupier rather than owner of the land, the ability of the Trust to construct drama facilities and associated works and conveniences on land will be preserved.

9—Substitution of Parts 3A and 4

This clause removes Parts 3A and 4 which effected the vesting of certain land (including the Festival Theatre) in the Trust. Once such land was so vested, these provisions no longer had any work to do. The clause replaces these Parts with new Part 4 (consisting of section 29).

Part 4—Ability to transfer property

29—Ability to transfer property

Proposed section 29 enables the transfer of the Trust's assets or liabilities (or both) to the Minister by proclamation.

10—Repeal of Schedules 1, 2 and 3

This clause deletes Schedules 1, 2 and 3 as a consequence of the deletion of Part 4. The Schedules currently provide map descriptions of sections of land referred to in Part 4.

Schedule 1—Transitional provision

1—Transitional provision

This clause clarifies that the vesting of property that occurred before the commencement of this Bill is not affected by the repeal of any provisions of the principal Act by this Bill, however, such property may, after the commencement of this Bill, be subject to transfer effected by proclamation under proposed section 29 of this Bill.

Debate adjourned on motion of Hon. D.W. Ridgway