Dáil debates

Wednesday, 24 November 2010

1:00 pm

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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Question 24: To ask the Minister for Tourism; Culture and Sport if she will detail in tabular form the annual percentage change in funding in real terms, taking account of inflation, of the Arts Council for each year from 2000 to date in 2010; and if she will make a statement on the matter. [44228/10]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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I am supplying the Deputy with a table that sets out the following details in regard to the Arts Council for each year from 2000 to 2010: total grant in aid; the nominal percentage change in funding compared with the previous year; the rate of inflation as measured by the consumer price index; and the real percentage change in funding compared with the previous year, taking inflation into account. The overall position is that total Arts Council funding has increased from €45 million in 2000 to more than €68 million in 2010, which is an increase of 52.3% in the ten year period. This is equivalent to a real increase of 19.2% over inflation for the 10 year period, as measured by the CPI. It also represents an average real increase of 1.8% each year over the 10 year period.

The Government appreciates the economic and social importance of the arts and culture sector. The economic value of the arts and creative industries, and their role in supporting enterprise and innovation in the economy as a whole, was highlighted at the Global Irish Economic Forum at Farmleigh and at the follow-up group of the Global Irish Network, which I chaired in New York. The value of our unique cultural assets in helping to distinguish Ireland from other tourism destinations has been also stressed as an increasing focus has been put on cultural tourism in recent years.

At the same time, while our arts, culture and heritage are important contributors to sustainable economic recovery, we appreciate that their contribution should never be measured in financial terms alone. Rather, they should be appreciated also for the social, cultural and educative benefits they bring to communities large and small around the country. The Government directed major increases in funding at the arts when resources were available. The unprecedented level of capital investment in arts facilities in particular will stand to the sector in the coming years. The challenge in the coming years will be to assist the arts in working smarter within the limited public financial resources available, building on our strengths and seizing new opportunities. Despite the undoubted challenges that will face the sector over the next few years, I am confident it can come through these difficulties stronger and in a position to achieve greater success in the years ahead.

The table below shows the annual grant-in-aid to the Arts Council from 2000 to 2010 inclusive together with the nominal changes and real changes in those years. Real changes are calculated by reference to the Consumer Price Index or CPI from 2001 to 2009 as published by the Central Statistics Office. The CPI for 2010 is taken from the most recent Department of Finance forecast.

Arts Council | | | | |
| | | | | |
| | | | | |
| Total | | | | |
| | | | | |
| | | | | |
| Grant-in-Aid - | | | | |
| | | | | |
| | | | | |
|Nominal and Real| | | | |
| | | | | |
| | | | | |
|Increase 2000 to| | | | |
| | | | | |
| | | | | |
| 2010 | | | | |
|----------------+-------------------+---------+---------------+-----------|
|Year |Total Grant-in-aid |Nominal |Inflation |Real Change|
| | | | | |
| | | | | |
| |€000s |Change % |Consumer Price |% |
| | | | | |
| | | | | |
| | | |Index % | |
|----------------+-------------------+---------+---------------+-----------|
| 2000| 45,080| | | |
|----------------+-------------------+---------+---------------+-----------|
| 2001| 48,140| 6.8%| 4.9%| 1.8%|
|----------------+-------------------+---------+---------------+-----------|
| 2002| 47,669| -1.0%| 4.6%| -5.3%|
|----------------+-------------------+---------+---------------+-----------|
| 2003| 44,101| -7.5%| 3.5%| -10.6%|
|----------------+-------------------+---------+---------------+-----------|
| 2004| 54,500| 23.6%| 2.2%| 20.9%|
|----------------+-------------------+---------+---------------+-----------|
| 2005| 66,233| 21.5%| 2.5%| 18.6%|
|----------------+-------------------+---------+---------------+-----------|
| 2006| 82,310| 24.3%| 4.0%| 19.5%|
|----------------+-------------------+---------+---------------+-----------|
| 2007| 83,000| 0.8%| 4.9%| -3.9%|
|----------------+-------------------+---------+---------------+-----------|
| 2008| 81,620| -1.7%| 4.1%| -5.5%|
|----------------+-------------------+---------+---------------+-----------|
| 2009| 73,350| -10.1%| -4.5%| -5.9%|
|----------------+-------------------+---------+---------------+-----------|
| 2010| 68,649| -6.4%| -1.0%| -5.5%|
|----------------+-------------------+---------+---------------+-----------|
|Total change | | 52.3%| | 19.2%|
| | | | | |
| | | | | |
|2010/2000 | | | | |
|----------------+-------------------+---------+---------------+-----------|

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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I thank the Minister. I appreciate that my question related to the period from 2000-10. However, if we move to 2005 and consider the relative changes between 2005, when we were still in Celtic tiger mode, and 2010, there was a decrease in real terms when corrected for inflation. While there was still an option for increasing the relative amounts, taking account of inflation, the figure was actually reducing. My fear is that the arts will become a soft option, so to speak, in terms of budgetary considerations. We recognise very much the contribution of the arts to society, and it is hugely important to make that recognition. However, there is also a major economic value. If the funding is cut, it is certain small groups throughout the country will become the victims. Theatres will close down and there will be a knock-on effect in terms of jobs. I want an assurance that this will not be allowed to happen and that the arts will be protected.

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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Deputy Upton is being a bit disingenuous in regard to specific areas and figures. The figure she refers to for 2005 was €66 million but that had jumped 21% from the previous year and was only €54 million in 2004. On the question I was asked, the figure was €45 million in 2000 and €68 million in 2010. The key point made by the Deputy was on the need to ensure the arts are not a soft option. I assure her the arts and culture sector is not a soft option for cuts in the coming budget or for the next four budgets. The figures in today's plan will outline this. We accept the importance of the arts sector, particularly at a time of difficulties for communities throughout the country. Whereas the sector will of course have to take a cut, like everybody else, it is not a disproportionate one.

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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One of my concerns is in regard to the small theatre companies throughout the country. Although these are not high profile nationally, they are very high profile locally and are extremely important. I am aware of some small theatre groups and companies that are already in a difficult situation and are very concerned about funding for next year. Some of this relates to local government support, and it is very important we make a strong connection between local government, arts support and the national slice of cake in terms of budgetary input into the small theatre groups. There is genuine concern that there will be a significant local knock-on effect if those theatres and companies are allowed to disappear.

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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Looking back at the funding that has been paid out for capital projects and in current funding in recent years, we can see that a huge number of very small groups has benefited. While I do not have the day-to-day decision making in regard to the expenditure by the Arts Council, I will suggest to the council that it needs to be considerate of this in making its allocations for next year because there are many jobs involved and much good work is carried out throughout the country.