I thank the joint committee for its invitation. I am the new chairman of the Arts Council. I took up office on 1 January, succeeding Ms Olive Braiden, whom many of the members would have met during her term of office. This is my first time to attend this or any similar Oireachtas committee. As I still learning in my post, I ask members to bear with me. I am accompanied by Mr. Alan Stanford, actor and theatre director; Mr. Philip King, musician, broadcaster and film maker, and Ms Mary Cloake, director of the Arts Council, whom members will know.
The committee requested that we address the issue of funding of the arts in an economic downturn. I am artistic director at Andrew's Lane Theatre and as such, I am familiar with the funding challenges facing the arts sector. My background is one of the assets I bring to my role as chairman of the Arts Council at this challenging time.
In the reply to a recent parliamentary question the Minister for Arts, Sport and Tourism said that even in these economic times he did not consider investment in the arts, culture and creative sectors as discretionary. The times when the arts might have been seen as a luxury are no more. The arts are part of the fabric of our society and what defines us as a people. They enrich our lives and can help us cope in these difficult times. When we seek to know the nature of a people in another place or time, we study their buildings, artefacts, rituals, stories and music. When we want to understand the meaning of love, death, war or ambition, we study music, drama, art, literature and film. In making art we make ourselves. In understanding art we understand ourselves.
The argument for a public subsidy for the arts derives from the same principle applied to providing a public subsidy for a range of public services. The arts are a social good which, if left to the marketplace, would not survive or would do so in a fashion so distorted that the public good would not be served. Up to now the arts sector has enjoyed a number of years of growing financial allocations, admittedly from a low base. The money was well spent during the past five years. As the Minister noted, the State appreciates and values the contribution the sector has made to the country internationally. Ireland has had a fantastic run in winning awards in recent times, which proves that our greatest natural resource is the arts.
Due to budgetary constraints, the level of funding to the Arts Council has been reduced to €74.439 million for 2009, an effective reduction of €9 million or about 12% less in overall terms than we invested in 2008. Reductions to arts organisations have been minimised as much as possible by the council, with its own costs being cut by €1.5 million. While the reductions were not unexpected and other sectors have taken bigger reductions, the arts are still a delicate flower in Ireland that requires nurturing. As with tourism and sports bodies, the arts sector copes badly with sudden change and its past is littered with job losses and emigration of talent.
The arts offer value for money for the investment made. In some countries the investment in one art form is the same as what the Arts Council receives for investment in the entire sector. The council supports festivals such as that in Galway with only very modest resources. The return for Galway from that investment is great, with some €24 million annually into the local economy and 150,000 patrons, the majority being 25 to 44 year olds with high spending power. We give the Galway Arts Festival very little for this return.
Most jobs in the arts sector are very modestly paid and, given the outcome, represent very good value for money. By extension, a further cut in funding for the arts at this point would mean significant job losses in communities across the country. The real saving to the Exchequer of further cutbacks to the arts would be minimal as almost all of the people concerned would immediately claim unemployment and other social benefits. Cutting the high level of activity we see in the arts all around the country would have no gain. In 2009 the Arts Council is driving as much of its resources as possible to artists and has managed to maintain 60 venues, many of them in the committee members' constituencies. We are funding 400 organisations to ensure there will be great drama in venues, superb local festivals, literary events and so forth. With fewer resources to invest, the council is mindful of the leadership role it plays for the entire arts sector and has made it a priority to maintain excellence in more than a dozen art forms.
That is not to say the Arts Council did not also have to disappoint. It had to maximise its resources and seek value for money in terms of economic impact. There will be some job losses and less theatre, music and so forth. If there are further reductions in our budget, significant grant cuts will be unavoidable and commitments to organisations will have to be reviewed. At this time we do not think there have been large numbers of job losses but if there is further whittling of our funds, there certainly will be. The arts sector has recognised that we are in a new funding environment, that we must all plan accordingly and face up to difficult decisions. In our sector people have pulled together in this time of crisis and continued with their activities, as members will see in their constituencies. Arts Council funding often helps organisations to attract significant additional financial resources and many of our stakeholders do this very well and galvanise and energise their communities to support them.
The arts enjoy massive public support. A good example was when the Gate Theatre took "Waiting for Godot" to 40 venues last autumn. It was a sell-out. Mr. Standford will tell the committee a little more about it shortly. It created an appetite and interest throughout the country to see a world class production. The Arts Council will continue to act in partnership with and as an advocate for artists and the arts. However, it cannot be blinkered to what is happening in the broader public finances.
One of the Arts Council's less visible roles is in creating and supporting communities through funding the arts in schools and elsewhere for young people, in hospitals, through local authorities and in encouraging people from all walks of life to participate in the arts. In many cases, modest amounts of funding have an enormous impact, empowering communities and encouraging the tens of thousands of arts volunteers on whom the sector relies. As far as we can, we will continue to maintain these activities. However, we also hope we can inspire audiences in the arts to spread their levels of interest. The arts are the single biggest pursuit in Ireland, bigger than the GAA and even bigger than political involvement. People all over the country get involved, by making it a career or as a volunteer or part of an audience. From the young to the not so young, the arts inspire and fuel the imagination.
The Arts Council's plan to sustain the sector during the recession is to connect the arts with the national agenda and in this way we hope other funding streams will become available that will help the arts community through the downturn. My objective is to do this in two ways during my term as chairman of the council. The first relates to cultural tourism. This area of tourism is already growing at a fast pace — three times faster than general tourism, according to the World Tourism Organisation. This works well in other countries. Many tourists like a cultural focal point to their holidays and this strand of tourism attracts high net worth holidaymakers. Cultural tourism is estimated to be worth €5.1 billion annually to the economy. Of the 4,800 individual "products" or events identified by Fáilte Ireland in its strategy document on developing cultural tourism in Ireland, almost 2,000 of these are arts events. Festivals take place during the year, many of which are funded by the council and they are a terrific magnet for tourists to local areas. They can be made an even more powerful attraction for cultural tourists and an even greater contributor to the local and national economies. The council is continuing its support for festivals in its allocations for 2009 and will continue to do so. We will work with Fáilte Ireland and Tourism Ireland to achieve the most for Ireland in tourism terms for the future. We know that Ireland's reputation is founded on the brilliance of its arts and artists, with international award winners in literature, theatre, music and so forth. This achievement must be maximised for the State and the Arts Council intends to work with the tourism bodies to drive cultural tourism during the recession. There should be much stronger linkages between arts events and tourism opportunities, while still maintaining the integrity of both.
The second area where I wish to connect the arts with the national agenda relates to the power of the sector to drive innovation. There is a drive by the Government to make Ireland the innovation island. The arts have a powerful contribution to make. We already know the power of the arts to promote social cohesion and an equitable society, two important ingredients at this difficult point. They can be harnessed, too, to attract investment to Ireland. They are a breeding ground for ideas and talent. Their healthy presence is also vital when company executives come to Ireland to decide on locations for investment. They tend to locate where there is a cultural life. When John F. Kennedy came to Ireland almost half a century ago, he spoke of the remarkable qualities of the Irish. He said they were hope, confidence and imagination. Now more than ever this imagination and creativity need to be harnessed if this is to become the smart economy of the future in technology and other sectors. In my term as chairman I want the Arts Council to have a greater connection with the IDA, Enterprise Ireland and the other job creating agencies of the State. I hope that in time we will bring together artists and companies to converse about innovation, creativity and commercialisation.
The arts are major providers of employment. We estimate that approximately 50,000 are employed, a big percentage of the employed Irish population. The Western Development Commission has estimated that the arts could create another 2,000 jobs in the west. The total potential of the sector is another 10,000 jobs based on international comparisons. The arts sector has the opportunity to be used in back-to-work and other programmes to get through the downturn. I am aware that Deputies on the committee have raised the importance of retaining skills in the sector during the downturn and I agree fully with them. The Arts Council will make the case for the arts to continue to receive funding, given the job creation potential of the sector. We will also make the case for the arts to be a part of the solution in this time of crisis. They can very much facilitate the smart economy drive and the move towards making Ireland the innovation island. One of my objectives as chairman of the council will be to connect the arts with the enterprise and creativity sectors. I will be asking the executive of the Arts Council to look at its organisation so that it can best support the "innovation island" future that Ireland seeks.
While these are dark times, we must look to the opportunities and potential possibilities. We must keep an eye to the future and we must secure an infrastructure for the arts and for the public. We hope Ireland will continue to win on the international stage.
I thank the committee for inviting us here today. I will now ask my colleagues, Philip King and Alan Stanford, to say a few words. Mr. King will address the committee about our unique Irish voice and its part in the arts and culture of our country. Is the Chairman happy with that?