07 Feb 2017
The Arts Council expects to invest about $40.7 million in the arts in the 2016/17 financial year and has introduced new measures to provide the arts sector with more certainty over funding levels if forecast revenue changes significantly throughout a year.
In March, Creative New Zealand signalled it would have to reduce arts investment in 2016/17 due to a decline in forecast revenue from the New Zealand Lottery Grants Board (NZLGB) for 2015/16. This revenue has since increased to be on a par with the $30 million forecast received at the beginning of the year. Forecast revenue for 2016/17 is $28.67 million.
“Our July forecast from the NZLGB for 2015/16 brought a substantial and welcome improvement in Creative New Zealand’s financial position. This means the Arts Council can maintain its investment in arts funding, capability building, international presentation and advocacy in 2016/17,” said Creative New Zealand Chief Executive Stephen Wainwright.
“The $3.7 million change in NZLGB forecast revenue during 2015/16 has highlighted the need for Creative New Zealand to take what further steps it can to provide the sector with more certainty over funding levels,” said Mr Wainwright.
At its July meeting the Arts Council established a new flexible fund of $600,000 (approximately 2.5% of projected NZLGB revenue) to complement its equity policy. The fund will only be invested in the last quarter of a financial year once Creative New Zealand has confidence that actual revenue is unlikely to reduce substantially from initial forecasts.
“The fund, coupled with a minimum equity policy, will provide Creative New Zealand with the flexibility to buffer an up to $2.2 million decrease in the NZLGB’s forecast revenue for 2016/17 ($28.67 million),” Mr Wainwright said.
The Arts Council will finalise its draft 2016/17 budget at its meeting in September pending updated NZLGB forecasts.
NZLGB forecasts are based on profit forecasts from Lotto NZ. Almost all of Creative New Zealand’s funding is from a combination of Lotto NZ profits, via a grant from the NZLGB, and Crown funding via Ministry for Culture and Heritage (MCH). Funding from the Crown via MCH will continue at $15.69 million.
Creative New Zealand revenue:
|
Year |
MCH (million) |
NZLGB (million) |
Other (million) |
Total (million) |
|
2016/17 |
$15.69 |
$28.67* |
$1.79^ |
$46.15^ |
|
2015/16 |
$15.69 |
$30.03* |
$1.44^ |
$47.16^ |
|
2014/15 |
$15.69 |
$31.07 |
$1.86 |
$48.62 |
|
2013/14 |
$15.69 |
$37.38 |
$1.11 |
$54.18 |
|
2012/13 |
$15.69 |
$31.02 |
$1.69 |
$48.40 |
|
2011/12 |
$15.69 |
$27.52 |
$0.98 |
$44.19 |
* Based on Lotto NZ forecast as at 12 July 2016
^ Estimated
For more information contact:
Helen Isbister
Communications Manager
04 473 0187
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