16/12/02
The State Government has been advised to merge the boards of the West Australian Ballet and West Australian Opera into one new company to provide the maximum opportunity for the long-term sustainability and development of ballet and opera in Western Australia.
This is the recommendation of a working party, headed by independent chair David Young, which was established by Culture and Arts Minister Sheila McHale in February 2002 upon a recommendation of the Nugent Inquiry. It was part of an agreement between the previous State Government and the Federal Government regarding the provision of increased recurrent funding to both organisations.
The working party, which included representation from the boards of the two companies, determined that combining the administrative and management functions of the companies would foster the long-term viability of both artforms.
"I have presented the boards of both companies with a copy of the report and have asked them to respond to me in writing by January 31, 2003 as to whether they are prepared to support and recommend this course of action to their members," Ms McHale said.
"I believe that there is strong potential to secure the long-term future of both artforms and the financial viability of the companies in this State through pursuing the merger, but I will not continue down this path if the companies cannot assure me they will embrace the proposal to merge in a spirit of goodwill and co-operation to see it succeed."
The merger recommendation relates only to the administrative and management structure of the organisations. The artforms will retain their identities and artistic staff and their programs will continue as they are.
In receiving the report, the Minister said the recommendations provided an opportunity to consider a new approach to the development of ballet and opera in the State.
"The working party has proposed a new business model that responds to the changes in the local and national arts environment over the last decade or so," she said.
"Both the West Australian Ballet and the West Australian Opera have experienced financial vulnerability, which has required the Government in recent years to provide additional stabilisation funding on top of their operating grants, to ensure their ongoing operation.
"The Government has significant demands on its arts budget. In particular, the Small to Medium Performing Arts Report has raised significant expectations and the Myer Inquiry into the Visual Arts has recommended increases in State and Federal funding.
"It would be extremely difficult to consider bailing out the companies should they find themselves in a deficit situation in the future.
"The proposed merger into one new company will provide the maximum opportunities across administrative and management structures to ensure the viability of these important artforms."
Minister's office: 9213 6900
