It wasn't that long ago, when a BBC reporter told me when I was being interviewed, not to use the term "austerity", as I had just done, and to use another term. That was 5 years ago. Now, the reality of austerity is on everybody's lips and the compounding effects of cuts are being felt across all sectors.
For those of us in the arts looking not just to support the people, schools,
organisations and client groups we serve but to enhance that offering and
service, the options continue to be challenging. Indeed, for the whole arts
sector, staring down very likely cuts over successive budgets, the outlook isn’t
good.
I’ve been trying to offer an assessment and range of considerations that
organisations, especially those working in community-based arts, might wish to look at. There is a PowerPoint presentation available on the CAP website that
outlines these areas of consideration.
Here, I just wish to amplify some of these areas and using the
opportunity that the Arts Council of Northern Ireland’s Sustainability programme
presents, look to the future for organisations at this time
Making significant and permanent change to any arts organisation should
really be painstakingly thought through. But at this time, with the axe poised
to fall on funding, we perhaps do not have that luxury. But at least, through
the Arts Council of Northern Ireland Sustainability Programme, we might have
the resource to help us consider what might be the best option for the organisation.
I suppose, like anyone doing any fundamental business planning we need
to consider the context that we are working in currently. I have looked at a
few comparisons, but they don’t serve to inspire much confidence. We are pretty
much bottom of the European League in Arts Subsidy.
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Northern Ireland now lags significantly behind our EU colleagues and
near neighbours in Scotland and ROI. On a comparative basis, according to the
Cultural Policies and Trends In Europe annual research, Northern Ireland
treasury spending on the arts, at around
€ 8.5 for every person annually, compares very poorly with say
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Latvia (55) Germany (117) never mind the highest investors in culture
Norway (534) Sweden (274) Austria (286). Holland (267).
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Spending in the Republic of Ireland was € 38 per capita with over € 23
in Scotland. Only Moldova spent a similar amount per person on the arts as Northern
Ireland.
These figures do not necessarily represent the fullest reflection of funding
available. For example, if we add in arts Lottery funding, it takes our per
capita budget to c €17, but that still looks so slight compared to our European
neighbours.
I have looked at a high level PESTLE analysis too. You can see that
politically, we are facing a time of great uncertainty. Between austerity, new
super councils, a new department for communities coming soon, general budget uncertainty
locally and the lack of political support the arts have experienced in recent
budget settlements, it doesn’t look like a particularly positive outlook.
Adding in the economic factors that flow from these political issues.
Again, more challenges lie ahead. Ironically of course, for those of us who
assist the most marginalised in Northern Ireland, the needs of those on low incomes
or who face other daily challenges become greater. Welfare reform, if and when
it eventuates, will hurt this group disproportionately more than others. Bear
in mind that there has been an insistence by people like Grow NI,
the business lobby, (not the excellent grassroots charity http://www.grow-ni.org/
that support community gardens) about a cash-back tax-cut to business that will
represent the solution to all our woes…in 5…or maybe 10…or maybe more
years. And in the meantime, those most vulnerable lose the protections and
supports that many rely upon and see that services from a range of sectors are
not able to respond to their needs either. The corp tax lobbyists haven’t addressed the key
arguments mind you http://www.taxresearch.org.uk/Blog/2015/01/09/northern-irelands-low-corporation-tax-rate-will-not-attract-new-business/
but that’s another issue, albeit related.
Of course there are further legal and environmental considerations too.
Enter ACNI’s Sustainability Programme, which offers support in a time of
challenge and change. The areas that this funding looks to support is detailed
in it guidance and I have looked at some of the top-line areas and issues that
I would consider most important for the sector to consider before making
application. This requires honest self-reflection for organisations and perhaps
a re-assertion of their mission, vision and values that drive their work.
We should also bear in mind at this time that as charities, we have to
make sure that our trustees’ personal liability is protected. Taking every step
to minimise and mitigate risk is what every chief executive should be assisting
a board to achieve. In times of reduced funding, when core costs and financial positions are under extreme stress, mitigating risks and instead finding
solutions like looking for new partnerships, collaborations, trading arrangements,
or diversifying revenue streams, alternative funding mechanisms etc, might not be the absolute priority because they all take time. And time can be the scarcest resource when
situations are moving so quickly. So, taking the opportunity to consider and evaluate
what may make things more sustainable is very worthwhile, even if there are opportunity
costs.
We had a good turnout of community arts organisations and others as
well at our look at sustainability and the opportunity that the new funding
from ACNI might represent.
We ran this workshop seminar on Monday 22nd June and as an introduction to this area, representatives who attended recognised the sobering financial outlook but also heard of the potential and opportunity that this funding might afford organisations. For any organisation at this time, the chance to enhance operations that make them more sustainable must be looked at. For many beyond our sector, there may not have been even the chance to consider such questions, before the axe fell.
For arts organisations receiving public
funding, their work is all about making change happen, for people, through the
arts. Now, some of those organisations themselves may need to consider how they
change to continue their mission.
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