DEPARTMENT OF STATE DEVELOPMENT, $672,950,000
ADMINISTERED ITEMS FOR THE DEPARTMENT OF STATE DEVELOPMENT, $10,448,000
Mr Gardner substituted for Mr Marshall.
Ms Redmond substituted for Dr McFetridge.
Dr D. Russell, Chief Executive, Department of State Development.
Ms A. Reid, Deputy Chief Executive, Department of State Development.
Mr P. Louca, Executive Director, Arts South Australia, Department of State Development.
Ms H. Schultz, Director, Cultural Heritage and Assets, Arts South Australia, Department of State Development.
Ms J. Layther, Director, Arts Programs, Organisations and Initiatives, Arts South Australia, Department of State Development.
Mr J. Andary, Director, Arts Industry and Finance, Arts South Australia, Department of State Development.
Ms S. McDonnell, Ministerial Adviser.
The CHAIR: We welcome everyone back to committee A. The estimates committees are a relatively informal procedure and, as such, there is no need to stand to ask or answer questions. I understand the minister and the lead speaker for the opposition have agreed an approximate time for the consideration of the proposed payments, which may facilitate a change of advisers. Can the minister and the lead speaker for the opposition confirm that the timetable for today's proceedings on arts, as distributed, is accurate.
Mr GARDNER: Yes.
The Hon. J.J. SNELLING: Yes.
The CHAIR: Changes to the committee membership will be notified as they occur. Members should ensure that the Chair is provided with a completed request to be discharged form. If a minister undertakes to supply information at a later date, it must be submitted to the committee secretary by no later than Friday 28 October 2016. This year, estimate committees responses will be published during the 15 November sitting week in corrected daily Hansard over a three-day period.
I propose to allow both the minister and the lead speaker for the opposition to make an opening statement of about 10 minutes each, should they wish. There will be a flexible approach to giving the call for asking questions based on about three questions per member, alternating each side. Supplementary questions will be the exception rather than the rule.
A member who is not part of the committee may ask a question at the discretion of the Chair. Questions must be based on lines of expenditure in the budget papers and must be identifiable and referenced at the beginning of each question. Members unable to complete their questions during the proceedings may submit them as questions on notice for inclusion in the Assembly Notice Paper.
There is no formal facility for the tabling of documents before the committee; however, documents can be supplied to the Chair for distribution to the committee. The incorporation of material in Hansard is permitted on the same basis as applies in the house, that is, that it is purely statistical and limited to one page in length. All questions are to be directed to the minister and not the minister's advisers. The minister may refer questions should he wish.
During the committee's examinations, television cameras will be permitted to film from both the northern and southern galleries, and we do ask for noise to be kept to a minimum. I call the Minister for the Arts to make an opening statement if he wishes.
The Hon. J.J. SNELLING: Just very briefly, and I will introduce advisers here at the table. The arts, obviously, are very important to our state. Increasingly, we have tried to shift the emphasis in the portfolio towards its potential to build economic activity in our state. A lot of the reason for the shift from where the arts portfolio had traditionally been located, in the Department of the Premier and Cabinet, into the Department of State Development under the leadership of Dr Don Russell, is to give it that sharp economic focus that is so important.
I think if you look at the combined economic impact of the Adelaide Festival, the Fringe and WOMAD, our most recent combined economic impact of those three festivals is $158 million, so these festivals are bringing people into South Australia, creating economic activity and putting dinner on the table of hundreds, if not thousands, of South Australian families.
We are also keen, obviously, to develop the arts industry in itself and develop new opportunities for our artists to develop their skills and take their skills around the world. We did extremely well, as I said previously in the house, in the Helpmann Awards, with a number of South Australians picking up key awards. WOMAD in particular picked up the award for the best festival in Australia, which we are very proud of. I think that award had historically always gone to Byron Bay, so it was very good to see WOMAD being acknowledged as one of Australia's leading festivals.
The government has made the biggest investment into our arts infrastructure, I think, than at any time since the 1970s, with significant upgrades to the Festival Centre and of course the redevelopment of the Plaza area, and significant investments within the Festival Centre itself. A significant investment at Her Majesty's Theatre will really provide new opportunities to bring shows through Adelaide and take a lot of pressure off the Festival Centre. At the moment, some of our home companies are feeling a little bit squeezed out because the Festival Centre has been so successful in attracting commercial productions, so having that additional expanded capacity at Her Majesty's will make a significant difference.
Of course, in last year's budget we made significant investments to our regional theatres. The government has also provided funding for a business case to begin development of a potential new art gallery in this state under the leadership of Nick Mitzevich, the director of the South Australian Art Gallery. We are very proud of our sector here and I am very keen to promote it. I continue to work with our arts industry to develop it in this state and provide new economic opportunities for our state. That concludes my statement but I will briefly introduce Dr Don Russell, who is the chief executive of the Department of State Development; Alex Reid, who is the deputy chief executive of the Department of State Development; and Mr Peter Louca, who is the executive director of Arts SA.
The CHAIR: So nothing extra for Parliament: The Musical then?
The Hon. J.J. SNELLING: No, I am afraid not—put in a grant application.
The CHAIR: I remind the committee that estimates of payments for the Department of State Development and Administered Items for the Department of State Development are still open.
Mr GARDNER: I think Peter Louca is the executive director of Arts South Australia as a result of the government's branding change, not Arts SA any more.
The Hon. J.J. SNELLING: Absolutely. I am corrected. I did get a kick under the table.
Mr GARDNER: I will go to questions. I refer to page 74 of Budget Paper 4, Volume 4. There are significant funds in grants and subsidies and intergovernment transfers, which is the bulk of this budget, which is through grants to the Museum, Art Gallery, Festival and so forth. Can we please have a list, either today or taken on notice, of the total grants for each of those bodies for 2014-15, 2015-16 and 2016-17?
The Hon. J.J. SNELLING: We have it. Do you really want me to read it out?
Mr GARDNER: Can I have the 2016-17 ones?
The Hon. J.J. SNELLING: Yes, sure. For the Adelaide Festival Centre Trust, $20,566,000; for the Adelaide Festival Corporation, $8.3 million; for the Adelaide Film Festival, $1.05 million; for the Adelaide Fringe, $1.412 million; for the Adelaide Symphony Orchestra, $2.566 million; for the Art Gallery of South Australia, $10.605 million; for Artlab Australia, $2.113 million; for the Australian Dance Theatre, $1.196 million; for Carclew Youth Arts Board, $2.518 million; for Carrick Hill, $907,000; for Country Arts SA, $4.712 million; for History SA, $5.308 million; for JamFactory Contemporary Craft and Design, $1.13 million; for South Australian Film Corporation, $4.768; for South Australian Museum, $10.539 million; for the State Library of South Australia, $33.482 million; for State Opera of South Australia, $1.571 million; for the State Theatre Company, $2.5 million; for Tandanya, $1.099 million; and Windmill, $1.057 million.
Mr GARDNER: Thank you. On the same page, I am interested in the FTEs. The actual in 2014-15 was 101. It was budgeted for a cut of seven, but the estimated result is an increase of four. Has that estimated result proved to be accurate?
The Hon. J.J. SNELLING: Essentially, the bulk of that 100-odd is an estimate based upon the overall budget allocation. It is an estimate that Treasury comes up with based upon that. The reason for the increase would be because there has been an allocation to Arts SA as part of its management of the Festival Plaza redevelopment project. That would be the reason for the increase. We have not actually employed four extra people as part of that. Treasury plugs the numbers in and it spits out this FTE count, and that would be the reason for the increase.
Mr GARDNER: The FTE count and a number of these figures throughout costs and so forth in last year's corresponding budget paper were significantly less than it is in this year's. In the identification of what as in the 2015-16 budget, for example, was 76.9 FTEs last year but this budget paper identifies it as 94. Can you explain that difference?
The Hon. J.J. SNELLING: It would just reflect the fact that we are spending more in the arts portfolio.
Mr GARDNER: We are not comparing apples with apples, because last year it identified that the 2015-16 budget was 76.9. This year, it identifies that the 2015-16 budget was 94. Is there a restructure within the department that is incorporating extra people?
The Hon. J.J. SNELLING: No, there has been no restructure and no job cuts. We would need to get back to you to account for that difference.
Mr GARDNER: While you are doing that, there are significant changes between last year's budget papers and what this year's budget papers say last year's budgets were down the list. So, if you can fulfil that answer, that would be great.
The Hon. J.J. SNELLING: I just refer the member for Morialta to footnote (a) on that page:
(a) The 2015–16 Budget amounts contained in the 2016–17 Agency Statements differs from those amounts contained in the 2015–16 Agency Statements to reflect internal resource allocations for each program. The 2015–16 Budget amounts in these statements have been amended for comparative purposes.
Basically, as has been explained to me, what has happened is Treasury, in the way that they allocate these things within Department of State Development, have obviously changed the allocation to provide more to Arts SA. That is why there has been in the change in the numbers. We would have to get back to with the exact reasons for that and why the change in methodology.
Mr GARDNER: The last question just in this fiddly bit. The FTEs are listed as then dropping to 92. Could we have perhaps the actual number of FTEs working in this area in 30 June 2015 and 30 June 2016 as well? Is there going to be a cut, as these papers would suggest?
The Hon. J.J. SNELLING: The 2016-17 cap for the state budget for the Art Centre of South Australia was 30.3, and Artlab, which is included in this number, was 24.5. Then there is a corporate overhead allocation, so that is basically a figure that Treasury come up with across DSD into that division, which is 37.2. That leaves a total of 92.
Mr GARDNER: We will go to page 77. The description is:
Provision of museum…and preservation services that enable the state's cultural, heritage and arts assets to be maintained and kept accessible to the community.
Minister, we have previously had some discussions in this chamber about the storage facilities for the Aboriginal cultural collection at the Museum which you have described as unacceptable at the moment. You previously said:
…in the current facility we cannot protect against issues regarding insect infestation, but we are certainly looking at what might be other options, and we certainly recognise that, in the medium term, the continued keeping of that collection at the present site is unacceptable.
We have also identified water damage on at least one occasion. What is the government doing about this?
The Hon. J.J. SNELLING: Within our existing budget allocation, we made about $200,000 available to the Museum to take some remediation action to protect the collection as far as we can within the current facility. More money, no doubt, is going to need to be spent there. I make no secret of the fact that long-term storage at the Netley facility is not going to be able to continue. The government is going to have to invest or find a new solution to the storage of those cultural artefacts because the Netley facility is just not up to it, but we are spending $200,000 to take some remediation work and to develop a business case as well around the long-term storage of those cultural artefacts.
Mr GARDNER: When was that $200,000 allocated, and when was the work carried out or is the work being carried out?
The Hon. J.J. SNELLING: Some maintenance work has been carried out by DPTI. Basically, the works are a continuing program and, as I say, we are also doing the preliminary work so that we might be able to present a case for the budget for long-term storage of those important cultural artefacts. There is work that is happening as we speak and will continue to happen to make sure that we protect those artefacts as much as we possibly can within the confines of the Netley facility.
Mr GARDNER: It is important that we do this, as it is the world's largest collection of Australian Indigenous artefacts. Who owns the building at the moment that it is stored in? Is it a government building, or a privately owned building being rented?
The Hon. J.J. SNELLING: The government sold the building a few years ago, so it is now privately owned and the government rents the building off the private owner.
Mr GARDNER: Minister, can you identify how many incidents there have been where there have been reports to Arts SA, or indeed to the Museum board, of water getting into the area where the collection is stored?
The Hon. J.J. SNELLING: There have been five incidents of water ingress at the Netley storage facility during 2016. One occasion in January and three in July were the result of extremely heavy rain conditions. The remaining incident was the result of a break-in during March, in which the fire sprinklers were tampered with. Artlab Australia reported the damage to the Museum collection's items from the January incident to be in the vicinity of $50,000. Despite reports to the contrary there has been no damage to collections from the other incidents. This can be attributed to the responsive actions of staff.
Heavy rains increase the risk of further water ingress. The Department of Planning, Transport and Infrastructure's site manager has increased the cleaning of the gutters from seven times per annum to monthly. However, heavy rains continue to reveal roof leaks, and the government is investigating options to address this. So that should answer your question. There have been five, only one of which has resulted in damage to the collection.
Mr GARDNER: How many artefacts were damaged on that one occasion?
The Hon. J.J. SNELLING: I do not have the figure, but Artlab estimated the damage to be $50,000.
Mr GARDNER: What are the insurance arrangements for the collection?
The Hon. J.J. SNELLING: Through SAICORP.
Mr GARDNER: Can we go to the next page, page 78. I am interested in the History SA Adelaidia app, which I notice was identified last year. Last year, there was a highlight of having doubled the content of the app; this year, the highlight is listed as having expanded the online content in the app. How is this app run? Is it contracted out to a private company? Do you have somebody in History SA whose job it is to manage this piece of tech, and at what cost?
The Hon. J.J. SNELLING: I think it is a combination. They would be engaging some outside expertise, but mainly I think doing it in-house, but I will find out from History SA.
Mr GARDNER: While you are finding out, can we also get some information about how many users have currently downloaded the app and how it has been marketed. Is it advised by Tourism SA?
The Hon. J.J. SNELLING: The app currently showcases 730 sites to explore across the city and has been downloaded 1,960 times. The website continues to see strong usage with a 54 per cent growth in users over the past 12 months.
Mr GARDNER: Some of these tech things will give you the opportunity to find some analytics and identify whether it has been downloaded by people within South Australia or by tourists and people from overseas; if there is any information that can be provided there, it would be good.
The Hon. J.J. SNELLING: Yes, we will be able to provide that.
Mr GARDNER: Is there a policy on data collection by the app? Is there a restriction across government of apps of the use of data collected in those apps?
The Hon. J.J. SNELLING: There would just be the general privacy provisions, but nothing else. We will find out if there is anything specific. There is certainly nothing in the regulations of the History Trust.
Mr GARDNER: No, I would not imagine so. Can we go to page 56, and I imagine that at some stage in this one of my colleagues might also have some interest in this area. Can I start with the Adelaide Festival Centre remediation works. I want to identify that last year's corresponding budget papers also showed some costs in the remediation works from the 2014-15 budget, but I remember that in last year's estimates, minister, you identified that it appeared this part was going to come in under budget because there had been some favourable tender considerations. Can I clarify, given that the 2015-16 estimated result is $3.1 million (which seems to be $400,000 more than was expected in the budget), whether this part of the Festival Centre, this remediation works line, is now completed, and has it come in under budget?
The Hon. J.J. SNELLING: Since last year, when we thought the project would come in under budget, we discovered a bit of asbestos which had to be remediated, so we now expect the project to come in on budget. There is a bit of extra cost associated with that, but it is still on budget.
Mr GARDNER: So that $500,000 fat in the budget, as it was, has come in handy?
The Hon. J.J. SNELLING: There would still be a normal contingency anyway in the budget for these sorts of things but, yes, the estimate is that it would come in on budget.
Mr GARDNER: In the same manner, the Festival Centre Precinct, a $63 million project—and we are all hoping that it comes up as excellent—is it on time and on budget at the moment?
The Hon. J.J. SNELLING: On our works it is. In the 2015-16 state budget, the government announced that it has committed $109.6 million to the Festival Plaza Centre Precinct. Of this, $6 million to $7 million will be invested to upgrade areas of the Festival Centre. The remaining funding is being delivered by the Department of Planning, Transport and Infrastructure for the redevelopment of the car park, and the Festival Plaza contributes $200,000 for annual plaza maintenance.
Design and documentation is well underway for the delivery of new entries from the north face of the Festival Centre. Refurbishment of the foyers to the Festival Theatre and Dunstan Playhouse, the upgrade to the Elder Park kiosk and toilets, the new transition area from the Festival Centre to Elder Park on the site of the current amphitheatre, and construction works to the north face and northern entries are due to commence in late 2016, with the upgrade of the Festival Theatre foyer to follow in 2017.
In addition, $5.14 million is being committed within this project to complete remediation works around the Adelaide Festival Centre, including the replacement of the membrane to the Festival Theatre roof shells, and repairing all concrete elements across the exterior of the centre. Of the $11.122 million dedicated to the upgrade of technical equipment within the theatres, $2.2 million is being contractually committed, which includes a new sound desk, microphones, the upgrade of microphones and radio microphones, follow spots, lighting equipment, lighting control desk, sound desk, headset communications and theatre drapes. It is forecast that the project will be completed in 2017-18, and I think it is all on time.
Mr GARDNER: What is happening to the Hajek sculptures?
The Hon. J.J. SNELLING: I will let the Executive Director of Arts SA take that question. I think the member for Davenport wants them for his front yard.
Mr GARDNER: I think he was thinking for his electorate office.
Mr LOUCA: The engineering reports presented to Arts SA, and to the project management team, have indicated that the concrete degradation also affects the sculptures. The removal of the sculptures commenced last Friday, with the removal of a plinth, one of the rhomboid elements of the Hajek installation. The government has consulted extensively with the Hajek estate, which contrasts with the original intent of Otto Hajek, who wrote to the government while he was still alive stating that if there was any interference or removal or changes to the artwork his preference was that the entire work be decommissioned. The estate took a different view from that after his passing.
After extensive negotiations, which articulated the way the work would be recorded—including 3D laser scans of the environmental sculpture (high definition photography)—the resolution was that an element of the Hajek original installation would be preserved and reinstalled in the redesigned plaza, with a commemorative plaque reflecting that this was the site of Otto Hajek's largest installation.
Ms REDMOND: Before I ask the question I was intending to ask, could I perhaps first of all ask about the car park and the new arrangements. Does the Festival Theatre get the benefit of any of the money generated from parking once the new car park is established, or does that all go to the Walker Corporation?
The Hon. J.J. SNELLING: There is an allocation of car parks, so overall there would be an allocation of a certain number of car parks, and I am just trying to find out what that is. Yes, they would get the revenue from the allocation they have. Treasury are managing that, apparently, at the moment.
Ms REDMOND: So, there will be an allocation for the Festival Theatre.
The Hon. J.J. SNELLING: That is right, yes.
Ms REDMOND: That means that they will get the money from those?
The Hon. J.J. SNELLING: That is my expectation. The bottom line is that they will not be disadvantaged.
Ms REDMOND: How many levels will the new car park have? Does anyone know yet?
The Hon. J.J. SNELLING: It is about five levels. It goes down quite deep.
Ms REDMOND: The question I want to ask on that is still on page 56, new projects, Her Majesty's Theatre redevelopment. I notice the budget for this year is a bit over $1½ million, and the overall project cost is close to $35½ million, and I imagine that those costs will blow out. That seems a fairly minimal amount. To what extent is the fundraising that Barry Humphries is heading going to accommodate the costs of that overall redevelopment?
The Hon. J.J. SNELLING: Of the $35 million, the government has committed $32 million, and $3.2 million is expected to be raised through fundraising efforts.
Mr GARDNER: While we are on Her Majesty's, who is in charge of running this project? Is it Arts SA or the Festival Centre?
The Hon. J.J. SNELLING: I will give that to Peter Louca.
Mr LOUCA: Under the cabinet guidelines, this is an Arts South Australia project and the builder is DPTI. Clearly, this is a project that we are working on hand in glove with the Festival Centre Trust. We are still working through the governance arrangements around that project.
Mr GARDNER: When will building work commence?
The Hon. J.J. SNELLING: We expect it to be next financial year, January 2018.
Mr DULUK: I refer to page 77 and the list of targets for 2016-17. In the 2015-16 Agency Statement, you list that the target was to commence planning on the Shandong Provisional Library for implementation by 2020. I just notice that it is not included in the 2015-16 highlights in this year's budget papers or 2015-16 targets. Is this project still ongoing?
The Hon. J.J. SNELLING: On pages 76 and 77, there is a reference to it. One of the highlights 2015-16 is, 'Hosted two interns form the Shandong Provincial Library for 10 weeks.'
Mr DULUK: What is the cost of that one?
The Hon. J.J. SNELLING: It would be pretty minimal.
Mr DULUK: Is hosting those two interns part of the One Card library network program?
The Hon. J.J. SNELLING: No, they are different things. My advice is that the intern is focused on two key projects: one was the proposed development of the One Card system and the other was the State Library and the University of South Australia industry partnership, which provides library archive and record management courses, both on site and online, as well as expertise and lecturers.
Mr DULUK: So we are still going down this One Card path?
The Hon. J.J. SNELLING: It is still ongoing, but it has been slow going because of circumstances in China.
Mr DULUK: Do you see it being completed?
The Hon. J.J. SNELLING: Yes, indeed, I think it will be continued. Certainly, the Library is very keen and the relationship overall is very good.
Mr GARDNER: I refer to page 79. Looking at all these estimated results, can we have the actual results, please—either provided on notice or here, I do not mind.
The Hon. J.J. SNELLING: The actuals get published in MYBR in any case, but, yes, we can make them available as soon as we can, but they are normally published as part of MYBR.
Mr GARDNER: In terms of History SA, I notice that in 2014-15 we went from $2.4 million actual to $1.2 million target the following year, which was vastly exceeded. Why are we not optimistic that we will again be over $2 million next year? Why do we have such a low target? Is there any particular reason? What is the basis behind those fluctuations?
The Hon. J.J. SNELLING: Are you talking about the revenue target?
Mr GARDNER: Yes.
The Hon. J.J. SNELLING: It was a one-off, and the increase in the 2015-16 estimated result compared to the target is mainly due to the amalgamation of separate funds from the History SA foundation into the general ledger in accordance with changes to the Australian Accounting Standards. There were funds off balance sheet held in the History SA foundation and the accounting standards changed and they were brought onto the balance sheet, and that is why there is an increase in revenue. So, that is the reason; it was a one-off increase for that reason.
Mr GARDNER: That is fine. On page 80, in the financial commentary there is reference to the provision of funding to the Hans Heysen Foundation's Heritage Appeal to secure The Cedars for public access of $1 million. I understand the commonwealth Catalyst fund put in $1 million and Mount Barker council $1.5 million. My understanding is that the next stage of what they are hoping to do at The Cedars will require some further support from the three levels of government, or at least they are asking for the support from the three levels of government. Is the government open to that?
The Hon. J.J. SNELLING: Probably not. I have had discussions with Peter Heysen about that. From the government's point of view, the most important thing was to secure the future of the site and to prevent it being broken up and sold off, so the government and the commonwealth both committed funding to that. I know that the foundation has further plans to develop the site. They have not put a formal proposal to us, but I made very clear to them that from my point of view my first priority was to ensure the security of the site. If they come to us in the future about any further work they want to do or further development they want to do on the site, we will give it due consideration.
Mr GARDNER: I understand your answer. It would have been about $3.5 million from the three levels of government at this stage, plus funds raised by the foundation. Is it your understanding that that amount has been sufficient to secure the site for the Hans Heysen Foundation rather than have a risk that it be potentially broken up?
The Hon. J.J. SNELLING: I do not think it is. I cannot remember the exact amount of money that they needed to secure it, but the government was prepared to make a significant contribution towards that. I know it is similar, or I think exactly the same, as what the commonwealth has made. I think the balance, if indeed there is a need, will be raised through their financial appeal. They have a structure set up to raise those funds.
Ms REDMOND: Just on that, given that it is in my electorate—and once again thanks to Barry Humphries who is also involved in that particular appeal—has that $1 million actually been paid over, or is it to be paid over on the occurrence of a certain contingency? What is the arrangement?
The Hon. J.J. SNELLING: We are drawing up the grant agreement at the moment. We expect it to be paid by September.
Ms REDMOND: I have a couple of others on this page, if I may. Firstly, on that same area of financial commentary, the second dot point on page 80 concerns the provision of a grant to the City of Mount Gambier to enable the purchase of the Riddoch Art Gallery collection from Country Arts SA for $2.1 million. I wanted to get my head around what is actually going on there because it reads to me as though the government is giving the council money to purchase something from the government. Is that correct?
The Hon. J.J. SNELLING: Yes, that is correct. The collection of the Riddoch Gallery is held by Country Arts SA, and we have been in discussions with the Mount Gambier council about the future of that collection. We came to an agreement to transfer that collection from Country Arts SA into the care of the City of Mount Gambier. The collection has a book value of $1.976 million and is worth $2,058,855, and the facility for that transfer is to provide a grant to the Mount Gambier council for them to purchase the collection back off the government.
Ms REDMOND: What is the reason for that, rather than simply gifting it?
The Hon. J.J. SNELLING: I think it is just an accounting treatment of it. It is an accounting treatment because we cannot gift a thing. We have to make a transfer of money, apparently; we cannot make a gift of an object. We actually have to provide a grant to purchase whatever it is and that is then paid back to us. They balance each other out.
Ms REDMOND: I just wanted to be sure I was not misreading it, that you were in fact giving the money for them to purchase something from us.
The Hon. J.J. SNELLING: Yes.
Ms REDMOND: The original dot point above that, 'additional funding in 2016-17 to maintain arts activities and sustain jobs growth and economic benefits for the state ($3.0 million)', which is the largest single figure in that list of the financial commentary. What specifically is that $3 million going to be spent on, and when you say 'sustain jobs growth' is that to say that there is a trend already apparent that there has been jobs growth in the arts area?
The Hon. J.J. SNELLING: The extra money basically has the effect of offsetting savings that were required of the agency. Otherwise, it would have had to have been allocated to all the institutions. So, it offsets that, so it will go back into the institutions. Obviously, while the whole area of arts will still be expected to make some efficiencies, this does enable us to ensure that we do not make any cuts to any of the programs or anything like that that otherwise would have been necessary.
Ms REDMOND: Sorry, minister, I am dumb, obviously. I do not understand how that explanation fits with spending an additional $3 million.
The Hon. J.J. SNELLING: It is money that otherwise was not there. It is money that was being taken out and put estimates at a decrease.
Mr DULUK: Staying on that line of questioning of the member for Heysen, has any modelling been done around what $3 million of new investment will do to sustain jobs growth? Has Treasury done any modelling on behalf of—
The Hon. J.J. SNELLING: We do have a fair idea of what $3 million worth of savings would have looked like. It would have had a significant impact on our agencies, on the institutions and on our festivals. It would mean, particularly with the festivals, significant reductions in programming across all festivals such as, obviously, the Adelaide Festival, the Guitar Festival, and the Film Festival. Those savings would have had a significant impact across all of those institutions and festivals that we have.
Mr DULUK: Going back to page 76, second to last dot point on the page around the installation of radio frequency. What percentage of this project was completed in 2015-16?
The Hon. J.J. SNELLING: The project is over 75 per cent completed, with three million of the total four million items tagged, and is on track to be completed by January 2017.
Mr DULUK: So, it is four million to be tagged, is it?
The Hon. J.J. SNELLING: Three million out of a total of four million, so it is three-quarters complete.
Mr DULUK: In last year's statement, it was stated that there were two million to be tagged. So, it is four million?
The Hon. J.J. SNELLING: So, they have been able to do more.
Mr GARDNER: If we can go back to page 74. Minister, at the beginning of this session you were kind enough to give us the list of the grants to all of the institutions for the current financial year. Do we have a budget for what we expect those grants to be in the 2017-18 financial year?
The Hon. J.J. SNELLING: We would not set that until next budget.
Mr GARDNER: So, that is for next budget. When are the institutions informed?
The Hon. J.J. SNELLING: Normally, the day after the budget.
Mr GARDNER: As to the institutions that are potentially to receive less funding next year than they do this year, perhaps I will ask you about the ones this year. Is it your intention to let them know in advance if they are to have any haircuts to make?
The Hon. J.J. SNELLING: We are constantly in contact with Arts SA and constantly in contact with the institutions and other agencies about their funding. It is never the case that they are presented with a shock. Obviously, if there is to be a significant cut, we do not leave that until the day after budget day to tell them. We work with them very closely and it goes through the normal budget process and the argy-bargy between Arts SA and Treasury about what might be able to be accommodated and what might not and what the implications might be of certain decisions taken.
We are certainly in constant contact with those institutions about what they anticipate but, with the extra money as part of this year's budget, it does mean that it does give far more certainty to those institutions than there otherwise would have been.
Mr GARDNER: On pages 81 and 82, there are a vast number of estimated results that make for fascinating reading, but last year's estimated results did not always have that much of an association with the actuals, so when you are getting those other actuals, potentially prior to the Mid‑Year Budget Review can I ask that we are provided with these actuals as they become available as well?
The Hon. J.J. SNELLING: Sure. We will take that on notice.
Mr GARDNER: Thank you. Just while we are here, in relation to the State Theatre, has legislation been prepared that will set it free from the shackles of being a part of the state government? Is that going to be presented this year? That is the characterisation somebody else used, lest anyone think that was mine.
The Hon. J.J. SNELLING: We are waiting on advice from crown before we can progress that particular matter. I have to also say that the board has been a bit distracted with other issues, such as the transfer of its office from the Railway Station to the Lion Arts Centre, so there have been other issues. Following analysis of the legal governance, financial, operational and compliance issues and risk, Arts South Australia is now awaiting advice from the Office for the Public Sector around the implementation of the proposed changes in structure and ownership.
Mr GARDNER: Can I ask about page 78. You have identified:
Continue the heritage restoration works along the North Terrace cultural precinct including the commencement of stonework restorations on the Mortlock building.
How much is being spent in that area this year and are there any other items apart from the Mortlock building that you will be dealing with?
The Hon. J.J. SNELLING: Are you particularly interested in the Mortlock building or more generally?
Mr GARDNER: The Mortlock is the one you have identified, and I am wondering if there are any others.
The Hon. J.J. SNELLING: The total cost of the precinct is estimated to be over $5 million, which includes the Department of Planning, Transport and Infrastructure's contribution to the heritage works components. Works are being staged over four or five budget periods. In 2015-16, the capital grant funded heritage restorations, external paning and installation of high-level safe work access on the east wing of the South Australian Museum. The total project cost was $1.157 million, with Arts South Australia providing $747,000 and the Department of Planning, Transport and Infrastructure providing the balance of $410,000.
In 2016-17, the heritage restorations and external paning will commence on the Mortlock building of the State Library of South Australia. Arts South Australia and the Department of Planning, Transport and Infrastructure will contribute $255,000 and $300,000 respectively for a total initial investment of $555,000. It is expected the Mortlock building project will continue into 2017-18 once the initial works identify the full extent of restorations required.
Mr GARDNER: Page 57 identifies a range of investments within the Department of State Development, including small programs, which I think are programs under $300,000 possibly. I am wondering if any of those small programs are within the arts portfolio, or the small projects on the previous page, page 56?
The Hon. J.J. SNELLING: My advice is that Arts SA would have some component of that. We will have to get advice back to you about what that would be.
Mr GARDNER: I am happy to have that come back and also the ones on page 56, which is the coming year rather than the annual programs.
The Hon. J.J. SNELLING: Yes.
Mr GARDNER: Thank you. Let me jump back to page 82, which talks about the State Opera. It is identified that the number of paid seats at performances has come down. I think the 2016‑17 projection is 12,500, which is 2,000 fewer than last year due to the availability of the Festival Theatre, or the non-availability, for State Opera as the case may be. I think this year only one of State Opera's performances—I stand to be corrected—is at the Festival Theatre. Can the minister provide some advice as to what the government's plan is in relation to how State Opera might be supported in this way, particularly when I would imagine that one key criteria of people who are enthusiastic participants of opera would be the quality of the audio and other facilities may or may not be up to scratch.
The Hon. J.J. SNELLING: My advice is that audience numbers will bounce around quite a bit for State Opera because it will depend on how many productions they do. It will also depend on the type of production they do and the location where they have the production. Obviously, while the redevelopment is happening at the Festival Centre, we expect that will have issues with regard to State Opera's ability to access the Festival Centre and that will have an impact.
However, one of the main reasons I was very supportive of the investment we are making at Her Majesty's is that State Opera and Adelaide Symphony Orchestra are the two cultural organisations that are most affected by ability to gain access to the Festival Centre. By having an alternative venue, that will certainly do a lot to free up access. Over the next couple of years I think it is still going to be a bit difficult for State Opera, but we would expect that once those works are completed at Her Majesty's you will see additional opportunities for State Opera.
Arts South Australia is in discussion with State Opera about what their needs are going to be. The last significant production they did of Cloudstreet was at Her Majesty's, which obviously at the moment is a far smaller venue than the Festival Centre. As I say, I expect those numbers will be down for a little while but then, with this investment we are making, they will have far greater opportunities to access the Festival Centre.
Ms REDMOND: Following on from that answer, I have a couple of things. On Cloudstreet, which was obviously hugely successful, is there any plan and does the government need to financially support in any way the touring of that particular production around the country or even internationally?
The Hon. J.J. SNELLING: If we did fund it, it would be co-funding with—
Ms REDMOND: Another opera company from interstate?
The Hon. J.J. SNELLING: —probably with the other arts funding bodies. Generally, the opera has access to its own various buckets of money, so I would expect potentially through Catalyst or through Australia Council funding. That might be something they would consider. No approach has been made so far from State Opera for a touring program.
Ms REDMOND: I am just going on the fact that there was an enormously positive reception to it, particularly from interstate people I spoke to on opening night who were thrilled that little South Australia was able to do that production. Opera Australia had announced that day that Julie Andrews was going to direct The King and I.
More importantly, on that point, obviously the reason that Cloudstreet, being Australian, could be produced in Her Majesty's is that there is no need for surtitles. My recollection is that the surtitles we have in the Festival Theatre were funded by the James and Diana Ramsay Trust, I think. In any event, are the discussions in relation to the redevelopment of Her Majesty's incorporating discussions about the provision of surtitling to enable things—perhaps smaller opera, but nevertheless needing surtitles—to be held there?
The Hon. J.J. SNELLING: I am not sure it is being considered, but I am more than happy to have a look at it and see what considerations are being made. I think it is a good point. Because opera is so expensive, in terms of the orchestra—
Ms REDMOND: Yes, there is an orchestra and lots of singers.
The Hon. J.J. SNELLING: Indeed—and sets and everything like that, for those large-scale operas you do need that large Festival Centre. Of course, operas can only play alternate nights as well, because the singers have to rest their voice, so you do need those big venues to do it. I would expect, once these works are completed and once the Festival Centre works are completed, generally speaking that opera would be there. It might be that there would be a few niche productions perhaps that they might do offsite, but it would generally be at the Festival Centre. I think you raise a good point about the availability of surtitles at the redeveloped Her Maj. I would be happy to have a look at it.
Ms REDMOND: Given the comment in here about the lack of availability of the Festival Theatre, to what extent because we are being blessed with getting Tim Minchin's Matilda?
The Hon. J.J. SNELLING: Not just that production, but any number of productions. The trust have been very successful in making a strong commercial drive to make the centre commercially viable. The flipside of that is access into the centre for our home companies. That is one of the principle drivers for our decision to invest in Her Majesty's. With an increased capacity at Her Majesty's a lot of those big, commercial Disney-type productions will be able to be done there and that will free up time at the Festival Centre for home companies (principally the State Opera and the ASO).
The CHAIR: We have not read in the omnibus questions for Health, so we need to do that now. Member for Davenport.
Mr DULUK: These are the omnibus questions:
1.Will the minister provide a detailed breakdown of expenditure on consultants and contractors above $10,000 in 2015-16 for all departments and agencies reporting to the minister, listing the name of the consultant, contractor or service supplier, cost, work undertaken and method of appointment?
2.In financial year 2015-16 for all departments and agencies reporting to the minister, what underspending on projects and programs (1) was and (2) was not approved by cabinet for carryover expenditure in 2016-17?
3.For each department and agency reporting to the minister, please provide a breakdown of attraction, retention and performance allowances, as well as non-salary benefits, paid to public servants and contractors in the years 2014-15 and 2015-16.
4.For each year of the forward estimates, please provide the name and budget of all grant programs administered by all departments and agencies reporting to the minister, and for 2015‑16 provide a breakdown of expenditure on all grants administered by all departments and agencies reporting to the minister, listing the name of the grant recipient, the amount of the grant, the purpose of the grant and whether the grant was subject to a grant agreement as required by Treasurer's Instruction 15.
5.For each year of the forward estimates, please provide the corporate overhead costs allocated to each individual program and subprogram administered by or on behalf of all departments and agencies reporting to the minister.
6.For each department and agency reporting to the minister, could you detail:
(a)How much was spent on targeted voluntary separation packages in 2015‑16?
(b)Which department funded these TVSPs?
(c)What number of TVSPs was funded?
(d)What is the budget for targeted voluntary separation packages for financial years included in the forward estimates (by year), and how these packages are to be funded?
7.What is the title and total employment cost of each individual staff member in the minister's office as at 30 June 2016, including all departmental employees seconded to ministerial offices and ministerial liaison officers?
The Hon. J.J. SNELLING: I will take that on notice.
The CHAIR: There being no further time for questions, I declare the examination of the proposed payments of adjourned and referred to committee B, the omnibus referred to both Health and Arts.
Sitting suspended from 12:30 to 13:31 .