Creative New Zealand review

A summary of the Creative New Zealand review has been released by the Ministry for Culture and Heritage. 

Creative New Zealand’s four governing bodies will be replaced by a single board, under a proposal announced by Minister for Arts, Culture and Heritage Christopher Finlayson last week.

One board responsible for policy, strategy and funding allocation would replace the Arts Council, the Arts Board, Te Waka Toi and the Pacific Arts Committee. The number of members would be reduced from 28 to 13, including a minimum of four members with knowledge of Maori arts and at least two with knowledge of Pacific arts.

The review of Creative New Zealand’s governing legislation was promised in the National Party’s arts culture and heritage policy in the 2008 election, which was informed partly by Mr Finlayson’s experience as Chair of the Arts Board from 1998 to 2001. Mr Finlayson said he hoped legislation would be introduced this year to enact the changes.


Review of the Arts Council of New Zealand Toi Aotearoa Act 1994 (Ministry for Culture and Heritage)

Background

Creative New Zealand’s current governance structure is set by the Arts Council of New Zealand Toi Aotearoa Act 1994 and includes:

• a seven member Council

• two seven member arts boards – Te Waka Toi and the Arts Board

• a committee of the Arts Board, the Pacific Arts Committee.

The Minister for Arts, Culture and Heritage appoints Council and board members. Te Waka Toi members and Maori members of the Council are appointed in consultation with the Minister of Maori Affairs.  The Arts Board appoints Pacific Arts Committee members, currently seven.

Why change the current governance structure?

The Government made a commitment to review Creative New Zealand’s governance structure to improve efficiency and make the best investment of resources for the benefit of New Zealand artists and arts organisations.

The main concerns with the current structure are:

i) the split between policy and strategic direction (the role of the Council) and funding allocation decisions (the arts boards) does not operate well in practice because:

• the Council’s remoteness from current and emergent sector issues undermines its strategic and policy development roles

• the arts boards’ responsibility for decision-making on a large part of the Council’s mandate and budget undermines the Council’s accountability for organisational performance

• the position of the Pacific Arts Committee as a subsidiary of the Arts Board complicates accountability arrangements, and

• there is overlap and duplication in the work of the Council and the boards

ii) it is difficult for the Council to hold the Chief Executive accountable for organisational performance because of the lack of clear accountability and efficiency between the roles of the arts boards and management

iii) The cost (direct and indirect) of servicing four bodies is high (estimated at $1,300,000 per annum or 16% of operating costs)

iv) The current arrangements with 28 appointed members are complex and disproportionate to Creative New Zealand’s size (55 staff), functions and budget 
 
What is the proposed structure?

New legislation will establish a single board responsible for determining strategic direction and priorities for the organisation, and for funding decisions.  The board will have the power to appoint advisory committees on matters relating to its functions. 

The board will include members selected to bring:

• appropriate knowledge of Maori arts

• appropriate knowledge of Pacific arts

• representation of the broader diversity of New Zealand’s population

• relevant arts management and/or practitioner expertise, and

• appropriate governance expertise.

What are the benefits of the proposed structure?

One board of up to 13 Ministerial appointees providing appropriate representation, diversity and expertise will:

• require fewer resources and free staff to focus on artists, arts organisations and arts development

• locate responsibility for policy, direction-setting and allocating funding with one body for greater efficiency

• ensure the board’s strategy and policy direction are informed by direct engagement with funding disbursement and awareness of sector issues

• provide clear lines of accountability for the board to the Minister, and between the board and the Chief Executive

• result in direct cost savings of approximately $200,000 per annum and significant indirect savings mainly in staff time servicing the current structure.

How will Maori participate in governance?

At least four board members will be appointed after consultation with the Minister of Maori Affairs.  Appointments will be based on selection criteria to ensure appropriate knowledge of Maori arts.

A committee comprising all board members representing Maori arts will be established.  Its powers and functions will be to:

• give advice and recommendations to the board and carry out any other functions or powers delegated to it by the board. This could include advice related to upholding the principle to recognise in the arts the role of Maori as tangata whenua; for example funding policies, strategic direction and planning, initiatives and recognition of achievements of Maori in the arts

• ensure Maori participation in policy making, strategy setting and funding decisions

The legislation will also include a requirement that Maori are included in peer assessment processes relating to Maori arts.

How will Pacific people participate in governance?

At least two board members will be appointed after consultation with the Minister of Pacific Island Affairs, based on selection criteria to ensure appropriate knowledge of Pacific arts. This will ensure Pacific participation in policy making, strategy setting and funding decisions.

The legislation will also include a requirement that Pacific people be included in peer assessment processes relating to Pacific arts.

What will happen to community arts providers and community arts councils?

The current provisions in the Act that allow the board to establish community arts councils, designate and allocate funding to community arts providers will be transferred to the new board, as a consequence of disestablishing the current arts boards.