This Statement of Intent for 2008-09 responds to the Statement of Expectation for 2008-09 from the Minister for the Environment, Heritage and the Arts. The Statement of Intent is a formal commitment by the Australia Council to meet the expectations of Government. It is intended to enhance communication between the Minister, the Australia Council and the Department. The Australia Council confirms that it will meet the Minister’s expectations, as outlined below.

Strategic priorities

The Australia Council’s business plan includes six strategic priorities.

These six strategic priorities are:

1. Increasing artists’ income levels
Most artists have to supplement their artistic activity with other paid work. The Australia Council is committed to developing the arts as a properly remunerated career path. Increasing income levels for artists is essential to attract and retain the best creative talent. Our core business—grants and funding programs—provides a crucial income stream for artists.

2. Promoting a greater appreciation for the arts
Australians love the arts, but not everyone knows it. Approximately 6 million adults attend a performing arts event, 3.6 million attend a visual arts event, and more that 3.5 million of us make creating art a major part of our lives each year. Yet many people think the arts are for a select few. The Australia Council plays a leadership role in promoting Australians’ engagement with our shared culture and fostering participation in the arts.

3. Promoting greater business and philanthropic involvement in the arts
Business and the arts work together. The arts give back in incalculable ways - from creative skills for the workforce through to marketing partnerships and the personal well-being of employees. The Australia Council has facilitated links between business, philanthropy and the arts for many years. Artsupport Australia, our initiative to grow cultural philanthropy, has been leading the way in this area since 2003. Over the past five years, Artsupport has facilitated approximately $20 million in philanthropic donations to artists and arts organisations. It has linked up artists with income sources, mentored artists and organisations to fundraise themselves, and raised understanding of philanthropy throughout the sector.

4. Becoming a knowledge centre on the arts in Australia
The Australia Council has a strong tradition of providing research and insights into the arts sector. Over the past decade, we have produced more than a hundred research reports, resources and other publications on the arts in Australia. This forms the bedrock of our policy and advocacy, and is a valuable resource for the arts sector and community. The Australia Council is working to strengthen our capacity even further, and to be universally recognised as the leading source of information on the arts in Australia. Our research program has already had major impacts in 2007–08. Sector-leading reports into the digital downloading of music, future trends in the major performing arts and protocols for producing Indigenous arts were all important resources for the sector. We have also launched an online research hub through www.australiacouncil.gov.au —a one-stop shop for information about the nation’s arts and culture.

5. Increasing development of arts content for the digital era
Digital content is changing the way Australians work and play. Online, mobile, gaming, broadcast and interactive industries already contribute more than $21 billion to the economy each year. Creativity is critical, with artists and animators making up nearly one-third of people producing digital games. The Australia Council recognises that artists must be supported to push their creativity into new domains. Digital technologies help connect with new audiences and provide an important source of income. We have supported cutting-edge artists working in media arts and inter-disciplinary arts through grant programs and initiatives for many years. Initiatives in 2007–08 have enabled writers to develop narratives for new media, major performing arts companies to beam hit productions across the country, and artists to create and commercialise content for mobile platforms, to name just three examples.

6. Extending the national impact of the Australia Council
The Australia Council’s reach must extend across the nation to properly support and sustain the entire arts sector. With offices based in Sydney, our challenge is to use technology and travel to reach further into all of Australia’s metropolitan and regional areas. The Australia Council is committed to improving our communication with, support for and presence in all the nation’s arts communities. A program to employ staff in other states and territories has already begun. Artsupport Australia has appointed managers in the Northern Territory, Queensland and Western Australia in partnership with the relevant state arts and territory agencies. The market development section now has staff in Victoria and Queensland working on major projects. In 2008, the governing Council is holding meetings in Sydney, Melbourne, Hobart, Canberra and Alice Springs, enabling Council members to talk with local artists and industry representatives.

Building a sustainable arts sector

Major and small-to-medium performing arts companies
The major performing arts companies in receipt of additional funding as an outcome of the second Review of the Major Performing Arts Inquiry Funding Model will report annually to the Australian and state governments on their investment of additional base grant funding to address the areas of artform development, artist development and access.

The Australia Council is reviewing the small to medium performing arts infrastructure in order to strengthen the sector to deliver greater outcomes in the areas of new work, international touring and organisational stability. The review will be completed by the end of 2008, with results being delivered from 2009.

Foster innovation in arts practice and administration
The Australia Council is committed to building longer term sustainability of the arts sector, through strategic initiatives and activities including business planning, financial and operational advice, career development initiatives, generating philanthropic income and marketing skills development.

Some outcomes include facilitating philanthropy mentoring for selected triennially funded arts companies, and assisting arts organisations to interact with new technologies in the creation and delivery of artistic works.

The Australia Council has implemented on-line grant acquittals, and is rolling out an on-line applications system in time for the first grant round of 2009.

Implement of new funding initiatives

Artists in residence
The Australia Council will implement the new funding initiative for artists in residence, in collaboration with state and territory arts and education departments. The funding will support a combination of programs – residencies, sessional staff programs and artist/teacher professional development programs – to improve young people’s access to quality arts education and provide opportunities for artists and teachers to develop effective teaching methods and practices for the arts.

Opportunities for young and emerging artists
The Australia Council will implement the new funding initiative for young and emerging artists to deliver high impact programs to increase opportunities for young and emerging artists. These programs will include the presentation of work created by and featuring young and emerging artists through performing arts companies, the development of professional skills, expertise and networks of young and emerging artists, and the engagement of young artists and audiences, particularly through youth arts and new technologies.

Creative communities
The Australia Council will implement the new funding initiative for creative communities to develop partnerships that will support opportunities for Australians to participate in arts and cultural activities of excellence in the places where they live, encouraging innovation and enhancing communities through community wellbeing and innovative community-based arts programs. Key performance indicators to measure outcomes of these initiatives are currently being developed.

Administration of key Government Initiatives

Major Festivals Initiative (MFI)
The Australia Council will continue its efficient administration of the MFI in collaboration with the Confederation of Australian International Arts Festivals. A review of MFI will be undertaken in consultation with the members of the Confederation and will be completed for mid-2009.

Melba Foundation
The Australia Council will continue to manage the administration of the grant to the Melba Foundation to produce high quality recordings of Australian musicians and secure international distribution for the recordings.

The Further Examination of Pit Services
The Australia Council will implement the remaining outcomes of the further examination of orchestral services to Opera Australia and The Australian Ballet subsequent to the completion of the trilateral negotiations between the Australian, New South Wales and Victorian governments.

Books Alive
The Australia Council will continue to manage the administration of the Books Alive campaign, including the development and implementation of the 2009 edition of the campaign. A review of the 2008 campaign, which took place in August 2008, will be completed in October 2008.

Visual arts and craft strategy
The Australia Council is responsible for managing the Australian Government’s contribution to the Visual Arts and Craft Strategy (with the exception of Major Exhibitions Touring and Indigenous Art Centre Projects). It administers recipients’ agreements and distributes funding according to the formula agreed by the Ministers through the Cultural Ministers Council (CMC). Council will continue to monitor recipients’ use of the funding, analyse the qualitative and quantitative benefits of the Strategy and report on the Australian Government funding by 31 August each year.

Orchestras Review 2005
The Australia Council will implement the remaining recommendations of the Orchestras Review 2005 in consultation with the Australian and State governments, including workplace reform and improvements in occupational health and safety practices required by the Review. As part of the implementation, the Australia Council will manage and administer the agreed grant process for the Canberra and Darwin Symphony Orchestras, in accordance with the Minister’s letters to the respective orchestras.

Review of the Orchestras funding package
The Australia Council is managing an Evaluation of the Orchestras Review Funding Package, working with specialist consultants, which was delivered to the Minister by 30 September 2008. The Evaluation includes a detailed assessment of the financial implications of the symphony orchestras’ divestment from the ABC and establishment as fully independent companies, and the effectiveness of the funding package in ensuring implementation of the government-agreed workplace and governance reforms.

Third Review of the MPAI Funding Model
The Australia Council will work with state governments and the Department of the Environment, Water, Heritage and the Arts (DEWHA) to complete the third review of the MPAI Funding Model in accordance with the Terms of Reference approved by the Cultural Ministers Council in October 2008. The Review outcomes will be reported to CMC in 2009.

Relations with Government and DEWHA

The Australia Council is committed to timely, open and effective communications with DEWHA and the Minister’s office. The Australia Council strives to be responsive to Government and the Parliament, providing prompt answers to Questions on Notice and other requests for information.

There is regular liaison with DEWHA in regard to major initiatives such as the Orchestras Review and participation in CMC working groups. Executive staff will continue to meet quarterly with senior DEWHA officials.

Stakeholder relations

The Australia Council will continue to increase non-government funding including in-kind support for projects. This strategy will involve partnerships with other federal, state and local government agencies and with the private sector to influence funding for the arts and to improve coordination of arts related activities.

The Australia Council will continue to manage Artsupport Australia, a program to assist arts organisations and artists to secure greater funding from workplace giving, donations and grants from trusts and foundations, and to promote the Australia Council Donations Fund, established in 2000. Over the past six months, Artsupport Australia has added one staff member in both Western Australia and Queensland in partnership with the state arts departments.

The strategic priorities and Government initiatives managed by the Australia Council require continual liaison with the arts sector and various levels of government.

Corporate governance

The Australia Council will continue to manage its financial affairs diligently and in accordance with legislative requirements.

The governing board of the Council is responsible for the corporate governance of the organisation, including the determination of priorities and the policy and budgetary framework within which the Australia Council and its boards, committees and advisory bodies operate, and for monitoring achievements. The Australia Council will continue to comply with all relevant corporate governance requirements.

All new members of the governing Council, boards and committee undergo an induction program. Members receive a comprehensive orientation pack detailing their role and responsibilities and the Australia Council provides ongoing support to Council members. All Council, board, committee members and peers are to abide by the code of conduct, recently updated and approved by the governing Council.

The Council has a formal risk management strategy and will continue to revise this annually.

A performance assessment of the governing Council’s performance will be undertaken.

A governance report will be provided for discussion at each formal biannual governance meeting.