Hon CHRISTOPHER FINLAYSON (Minister for Arts, Culture and Heritage) : I move, That the Arts Council of New Zealand Toi Aotearoa Bill be now read a first time. At the appropriate time I intend to move that the bill be considered by the Government Administration Committee, that the committee present its final report on or before 3 December 2010, and that the committee have the authority to meet at any time while the House is sitting, except during oral questions, during any evening on a day on which there has been a sitting of the House, and on a Friday in a week in which there has been a sitting of the House, despite Standing Orders 192 and 195(1) (b) and (c).
This is a great day for the arts in New Zealand. The Arts Council of New Zealand Toi Aotearoa Bill replaces the Arts Council of New Zealand Toi Aotearoa Act 1994, and the purpose of the bill is to streamline the governance structure of the Arts Council of New Zealand, otherwise known as Creative New Zealand. Let me remind the House of the role the council plays in the cultural life of New Zealand.
Grant Robertson: Please do.
Hon CHRISTOPHER FINLAYSON: When Mr Robertson goes to a performance by Black Grace or the Auckland Philharmonia Orchestra and stays for the entire performance, when he attends a Taki Rua or Auckland Theatre Company production, when he supports his friends’ sons and daughters’ performances at the Smokefree Rockquest, or when he attends writers and readers festivals or Style Pasifika, he should know that those arts events are supported by the Arts Council. Those are just a fraction of the arts activities and organisations that receive support from that great institution.
The council also awards bursaries and scholarships to help our best and brightest in their chosen field, it partners with local authorities on community arts initiatives around New Zealand, and it awards hundreds of grants each year through the contestable funding programme. It also administers major awards, such as the Prime Minister’s Awards for Literary Achievement and the Michael King Writers’ Fellowship. The council’s decisions are made independently of the Government and are informed by assessments from fellow artists. I strongly believe in the arm’s length funding model because I do not think politicians should be making decisions about particular arts projects.
Under the current legislation, the governance of the Arts Council consists of a seven-member council. I acknowledge the great contribution of Helen Kedgley, the sister of Sue Kedgley, to the seven-member Arts Council; Te Waka Toi; the Arts Board; and a committee of the Arts Board, the pacific arts committee. I have always considered that this structure was weird. It is cumbersome and it is top-heavy. A ratio of up to 28 appointed members for 55 staff is disproportionate. The four governing bodies are also a significant cost to the organisation, and that diverts resources from Creative New Zealand’s core business: arts, arts organisations, and arts development.
Other significant inefficiencies have been identified. The work of the council and the board overlaps. The council is expected to develop effective strategy and policy despite having no direct contact with the sector. The council is accountable for organisational performance even though it has no part in the board’s decision making. The lines of accountability between the Arts Board and management are not clear. The pacific arts committee’s status as a subsidiary, if you like, of the Arts Board also has complicated accountability arrangements.
This bill addresses these shortcomings by replacing the current complex structure with a single board, to be called the Arts Council. It will have 13 members, who will be appointed for their knowledge of professional and community arts. Part 1 of the bill prescribes the new Arts Council’s functions, powers, and membership, and it reaffirms the council’s independence from ministerial direction in relation to cultural matters. For the purposes of the Crown Entities Act 2004, the members of the Arts Council will constitute the board.
The Arts Council will be responsible for determining strategic direction and priorities, and for funding decisions. Under clause 7(1)(c), funding will be allocated to projects for professional and community arts, including funding for Māori arts, the arts of the Pacific Island peoples of New Zealand, and the arts of the diverse cultures of New Zealand. The council will set guidelines for the allocation of funding and for community arts providers. Where appropriate, the council will use peer assessment processes for the allocation of funding. It is to be emphasised that Māori are to be included in any assessment process relevant to Māori arts, and Pacific Island peoples will be included in the assessments of arts of the Pacific Island peoples of New Zealand.
Clause 10(4) of the bill stipulates that at least four members of the Arts Council will be appointed with regard to their knowledge of te ao Māori, tikanga Māori, and Māori arts, and at least two will be appointed with regard to their knowledge of the arts of the Pacific Island peoples of New Zealand. These responsibilities reflect the Government’s particular responsibilities for tangata whenua and for the maintenance and promotion of Pacific Island peoples’ arts, particularly for those nations where such a large number of their population now reside in New Zealand.
Under clause 11(1) of the bill, at least four council members representing Māori will constitute a committee of the Arts Council. The committee will give advice and make recommendations to the council on matters relating to Māori arts, and it will carry out any other functions or powers delegated to it by the council. Under clause 10 of the bill, the Minister for Arts, Culture and Heritage will appoint all 13 members of the council. The Minister of Māori Affairs will be consulted on the appointment of members who have knowledge of tikanga Māori and Māori arts, and the Minister of Pacific Island Affairs will be consulted on the appointment of the members with knowledge of the arts of Pacific Island peoples.
I believe that this new governance structure has very clear benefits. The responsibility for policy, strategy direction, and the allocation of funds will be contained within one body for greater efficiency. Fewer resources will be required, and staff will be freed up to focus on artists, arts organisations, and arts development. Māori and Pacific arts will be represented at the council table, with full participation in policy making and strategy setting, as well as in funding decisions. The council’s strategy will be informed by the direct experience of funding disbursement and sector issues. There will be clear lines of accountability from the council to the Minister and between the council and the chief executive. A more streamlined structure will improve service delivery, and, I believe, it will be less costly.
Under the bill, the powers and functions of the existing arts boards related to community arts providers and community arts councils will transfer to the Arts Council. Under section 10 of the 1994 Act, the Arts Council must produce and consult on a strategic plan every 3 years. This bill does not continue that requirement, with the reason being that under the Crown Entities Act 2004 the Arts Council is already required to produce a statement of intent. Stakeholders can expect to continue consultation through the annual letter of expectation from the Minister for Arts, Culture and Heritage.
The Arts Council looked at various governance models during its review, in consultation with former chairs of the council, arts boards, Pacific arts committees, and related Government agencies. The Ministry for Culture and Heritage consulted Māori and Pacific arts organisations and also community leaders about their view, and I have to say there was broad support for the proposals but concerns about representation of Māori and Pacific Island people in the new structure. I tried to address these measures in the bill in order to address those concerns. The select committee will, of course, provide opportunity for further feedback.
I am confident that the governance model I have outlined today will improve the Art Council’s efficiency and responsiveness and ensure the best investment of resources for the benefit of New Zealand artists, arts organisations, and, indeed, the wider community. I hope that the bill will receive wide support, as the changes it includes will deliver better value for taxpayer dollars and a more efficient service directory for an organisation that has done a great deal for New Zealand since a previous National Government created it in the 1960s. I commend the bill to the House.
