Outcome 1 - Resources for outcomes

A rich and stimulating cultural environment and a stronger, sustainable and internationally competitive Australian sports sector

* Budget estimates as at 2002-03 Portfolio Additional Estimates Statements

** Budget estimates are as at 2003-04 Portfolio Budget Statements.

# Staff numbers reflect a reallocation of overheads.

Note: There are changes in the outcome and output structure in 2003-04. For the purposes of comparison in this

Report these changes have been amended to fit the 2002-03 outcome and output structure.

The 2003-04 changes are:

• Output 1.1 in 2003-04 does not include the Sports component, which is the new Output 2.1 under Outcome 2.
• Output 1.2 will cease to exist as Centenary of Federation in 2003-04 hence no comparison.
• Output 1.3 covering Old Parliament House and the National Portrait Gallery becomes Output 1.2 in 2003-04.
• ScreenSound, which was included in the Output 1.2 in the 2003-04 Portfolio Budget Statements, has since been transferred to the Australian Film Commission effective from 1 July 2003.
• Questacon, which was included in the Output 1.3 in the 2003-04 Portfolio Budget Statements, has since been transferred to the Department of Education, Science and Training effective from 1 July 2003.

Performance indicator index

EFFECTIVENESS

Overall achievement of the outcome

The promotion of excellence and access to the arts and culture for all Australians

The Department provides strategic advice to the Government on a range of arts and sport issues, administers a number of programs, supports the work of arts and sports portfolio agencies and manages the Department's operational groups - Old Parliament House, the National Portrait Gallery and Artbank.

Increasing level of private sector support for the arts

A cohesive framework is in place to facilitate private sector support for the arts

Level of private sector support to the cultural sector through philanthropy and sponsorship

The Government has established an integrated framework to facilitate private sector support for the arts through:

• the Australia Business Arts Foundation (AbaF), a wholly owned Australian Government company whose objective is to increase private sector support for cultural activities; and
• the Australian Government's cultural philanthropy programs:
• - the Register of Cultural Organisations (ROCO), which allows approved cultural organisations to offer tax deductions to donors for the value of their donations; and
  - the Cultural Gifts Program (CGP), which provides tax deductions to donors for donations of significant cultural items to public museums, libraries and art galleries.

During 2002-03, AbaF has effectively facilitated increased private sector participation in a range of activities, including a significantly increased number of business/arts partnerships as outlined in Table 1. With the implementation of AbaF Council's Arts and Business program, there has been a greater focus on the specific areas of smaller and local arts organisations and businesses than on providing general workshops during the year.

Table 1: Private sector participation

The philanthropy programs have also been effective in facilitating private sector support. As outlined in the table below, the value of private sector donations through the CGP during the year increased by 60 per cent compared with 2001-02, building on an increase of 51 per cent between 2000-01 and 2001-02.

Table 2: Private sector donations

The significant increases in donations to the CGP over time (see Table 2) are partly attributable to the Government's enhancements to the tax philanthropy provisions in May 2000, which included the introduction of capital gains tax exemptions and apportionment of deductions over five years for donations under the CGP. The Department has also vigorously promoted the CGP and the benefits of the enhancements for donors.

Full-year data on donations to organisations listed on the ROCO are not yet available for 2002-03. In the first half of 2002-03 donations to ROCO organisations totalled $10.9 million, compared with $11.3 million for the first half of 2001-02. However, it is not possible to assess at this stage how the full-year figures for 2002-03 will compare with 2001-02.

Improved access to cultural activities

A diversity of cultural activity available in regional and remote areas*

Number and geographic range of tours of performing arts, contemporary music and cultural exhibitions and festivals assisted*

Trends in the numbers of visitors to international exhibitions that have been indemnified by the Australian Government

Level of domestic audience reach by the Australian Government film and television investments

Level of online access to cultural information

(*These indicators are for administered items)

National touring programs

The Government supports a number of cultural activities that provide improved access, particularly in regional and remote areas. During 2002-03, the Minister for the Arts and Sport approved funding of more than $6.8 million through the national touring programs for approximately 170 cultural projects:

• through the Playing Australia program, the Minister approved funding of $4 195 794 for 49 performing arts tours including theatre, opera, comedy and circus, compared with $3 768 860 to 36 tours in 2001-02. Itineraries for the approved projects include 184 regional and remote towns;
• through the Festivals Australia program, the Minister approved funding of $921 387 for 70 cultural projects compared with $1 048 807 for 72 projects in 2001-02. Of 63 projects funded in 2002-03, 55 will take place in regional and remote areas;
• through the Visions of Australia program, the Minister approved funding of $1 473 697 for 22 touring exhibitions and seven development applications compared with $1 510 039 for 21 touring exhibitions and ten development applications in 2001-02. Visions of Australia projects funded in 2002-03 will tour to 126 regional and remote towns; and
• in the first round of the Contemporary Music Touring Program, the Minister approved funding of $215 561 for 24 projects to undertake music touring activities around Australia, including visits to 238 venues in regional and remote areas.

The Department receives information on visitor numbers to funded events when projects are acquitted. This data covers tours funded in previous years as well as projects funded and completed in 2002-03.

For example, Playing Australia projects acquitted during 2002-03 showed that more than 143 000 people had attended 27 touring productions to 114 regional and remote locations during the year.

Visions of Australia touring projects acquitted during 2002-03 showed that more than 486 000 people had attended 30 funded touring exhibitions at 188 regional and remote venues.

The touring programs provided access to exhibitions and productions in both metropolitan and regional locations across the country. Table 3 provides information on the number of locations visited by touring exhibitions and productions in 2002-03 and 2001-02 respectively.

Table 3: Number of metropolitan (M) and regional (R) locations visited by touring exhibitions and productions

2002-03

2001-02

*Metropolitan locations include capital cities. In the context of the ACT, 'regional' is defined as Jervis Bay.

Regional Arts Fund

The objective of the Regional Arts Fund (RAF) is to encourage and support community cultural development in regional Australia, and to increase access to information and skills development opportunities for artists in regional communities. Regional Arts Organisations (RAOs) in each State and arts ministries in the Northern Territory and the Australian Capital Territory manage RAF on behalf of the Department and are responsible for decisions about funding.

The Government provided further funding for three years for the RAF in the 2001-02 Budget. The year 2002-03 was the first full year of operation of the renewed RAF.

The Minister for the Arts and Sport announced 179 community arts grants during the year, including:

• arts development in remote Indigenous communities (Western Australia);
• development of theatrical work exploring local community issues (Queensland); and
• a children's arts festival (Tasmania).

A break up of grants provided in 2002-03 is at Table 4.

Table 4: Regional Arts Fund grants

* Community Arts Project grants announced during 2002-03. Some grants have been made from 2001-02 rather than 2002-03 allocations to RAOs. Includes some two-year grants.

# Funds rolled over to 2003-04

Regional Arts Fund grants were also provided to the Australia Council and Regional Arts Australia (RAA) during the year as follows:

• the Council received $100 000 which was allocated to the Queensland Biennial Festival of Music; and
• RAA received $70 000:
• - $35 000 for the National Regional Arts Conference 'Groundswell' held in Albury in October 2002; and
  - $35 000 for a forthcoming publication on regional arts stories.

Artbank

Artbank supports contemporary Australian artists through the acquisition of their works and promotes Australian art through a rental scheme, which gives the private and public sector access to the Artbank collection.

In 2002-03, Artbank acquired 219 new works from 129 artists, valued at $618 373. As at 30 June 2003, there were 5822 Artbank works on display for 552 clients throughout Australia and in Australian posts overseas. This represents a slight decline from 6030 works on display with 563 clients as at 30 June 2002.

While overall client numbers were similar to those for 2001-02, Artbank attracted new clients from a range of locations including its first client located in the Northern Territory, and new public and private sector clients in regional New South Wales, Queensland, Tasmania and Victoria. Revenue from private sector clients increased from 42.7 per cent in 2001-02 to 44.9 per cent in 2002-03.

Kiripuranji: Contemporary Art in the Tiwi Islands, the touring exhibition curated by Artbank, was launched in July 2002. The exhibition toured Australian Embassies and High Commissions throughout the South Pacific during the year and during 2003-04 and 2004-05, it will tour to South East Asia, Europe and Africa. The exhibition provides international access to Artbank's collection and has been well received.

Art Indemnity Australia

Art Indemnity Australia helped to provide access to significant artworks during the year. The Australian Government indemnified two exhibitions predominantly sourced from overseas: Pierre Bonnard, Observing Nature and The Italians: Three Centuries of Italian Art. The scheme also indemnified Out and About, which showcased the best of the National Gallery of Australia's collections to regional Australia. The exhibitions toured to 13 locations in all States and Territories, including the Araluen Centre for the Arts in Alice Springs, the Queen Victoria Museum and Gallery in Launceston and the Mornington Peninsula Regional Gallery in Victoria.

Exhibitions indemnified by the Australian Government during 2002-03 attracted approximately 591 000 visitors. This compared with approximately 600 000 visitors to five exhibitions indemnified by the Australian Government in 2001-02. The slight decline in visitor numbers can be attributed to fewer exhibitions being indemnified in 2002-03, and the popularity of exhibitions held during 2001-02 as the Centenary of Federation year.

Australian Government film and television investments

In the 2002 calendar year¹, the 19 subsidised Australian films that were released earned $41.8 million at the Australian box office. This figure represents 4.9 per cent of the total cinema takings. This compares with 23 Australian films earning $63.4 million at the box office during the 2001 calendar year, representing 7.8 per cent of total cinema takings.

The difference in performance during 2002 is due in large part to the market dominance of three United States blockbuster 'event' films: Lord of the Rings: the Two Towers, Star Wars Episode 2: Attack of the Clones and Spiderman.

The overall performance of Australian films was solid, with three films (Crackerjack, Rabbit Proof Fence, Dirty Deeds) earning over $5 million each. In the first half of 2003, three more subsidised Australian films have had successful releases in terms of box office and/or critical response - Ned Kelly (over $8 million), Fat Pizza (around $3.5 million) and Alexandra's Project (over $650 000).

In 2002-03, 61 television and film productions funded by the Film Finance Corporation Australia (FFC) were screened on television, including The Postcard Bandit, which attracted over 1.6 million viewers, and Looking For Alibrandi with over 1.5 million viewers. This compares with 29 FFC-funded projects screened in 2001-02. The increase in the total number of projects screened in 2002-03 is due to an increased focus by the FFC on extending the audience reach for documentary productions.

Online access to cultural information

The Culture and Recreation Portal (CARP) provides access to the websites of cultural and recreational organisations and provides services and resources for those organisations. In 2002-03, CARP received approximately 1.5 million visitors, a level similar to 2001-02. CARP provided access to 2521 cultural websites at 30 June 2003 compared with approximately 2000 at 30 June 2002.

The Department administers arrangements for the delivery of Australian Museums and Galleries Online (AMOL) website on behalf of the Cultural Ministers Council. By 30 June 2002, AMOL had achieved its target of 1250 cultural organisations participating in AMOL's National Guide², which increased to 1268 cultural organisations by 30 June 2003.

The AMOL site continued to increase in popularity, averaging 2450 users per day during the first quarter of 2003, an increase of 48 per cent compared with the same period in 2002, and substantially above the average of 1625 users per day during 2001-02.

Support the development of a cohesive, world-class sport and leisure industry

Maximise export opportunities for sport and leisure industry products and services

Raise awareness and cohesion of the sport and leisure industry

Enhance industry statistics and research

Identify and promote business opportunities through membership of the Beijing 2008 Olympic Coordination Group

Liaise with the Department of Foreign Affairs and Trade to address trade barriers through current General Agreement on Trade in Services (GATS) negotiations round

Identify and assess industry statistical needs

Provide funding support to key stakeholders

Support industry association awards and schemes

Provide secretariat for sport and leisure action agenda implementation committee and the Recreation and Sport Industry Statistical Group

The sport and leisure industry is an emerging industry making an increasing contribution to the Australian economy. Australian Bureau of Statistics (ABS) research shows that, in 2000-01, sport and physical recreation services generated almost $8.5 billion in income - nearly three times the income level recorded in the previous survey, conducted in 1994-95.

During 2002-03, the Australian Government provided funding for a range of activities to support the development of the sport and leisure industry including:

• $101 000 and other assistance to Australia Sport International (ASI) to promote Australia's sport-related businesses internationally;
• A further $31 000 to ASI to formulate a measurement model as a basis for valuing sport and recreation exports. Results from this funding will be available in 2003-04;
• $50 000 to Sport Industry Australia to coordinate a project assessing the economic and social benefits of sport and recreation at a domestic level. Results from the project will be available in 2003-04; and
• $15 000 sponsorship for the Sport Export Award at the 2002 Sport Industry Awards, which promote achievements in the sports industry through the year.

During 2002-03, the Department provided secretariat services to the Recreation and Sport Industry Statistical Group (RSISG), whose aim is to improve the range, definition and quality of statistics for the sport and recreation industry.

RSISG oversaw a work plan delivered with the assistance of the ABS. Key ABS publications released during the year included Sports Industries, Australia 2000-01 (Cat. 8686.0), Employment in Sport and Recreation (Cat 4148.0), and Sport and Recreation Funding by Government (Cat 4147.0).

The Department participated in two meetings of the Beijing 2008 Olympic Coordination Group formed by the Australian Trade Commission to encourage a cooperative approach to international trade activities associated with the Beijing 2008 Olympics and other major sporting infrastructure opportunities.

The Department also participated in three meetings of the GATS Inter-Departmental Committee. The Department and the Department of Foreign Affairs and Trade are working with ASI and industry to further trade liberalisation through the submission of a proposal under the current GATS round.

Promotion of effective anti-doping measures in sport, both nationally and internationally

Effective administration of anti-doping grant programs

Effective representation at international anti-doping forums

Anti-doping funding directed to projects addressing agreed priorities

Effective framework in place for developing whole of Government positions for international anti-doping forums

Funding fully allocated to stakeholders in a timely manner

Australia has one of the most rigorous anti-doping regimes in the world and is committed to supporting anti-doping measures both domestically and internationally. International activity during 2002-03 included participation by the Minister for the Arts and Sport and/or Departmental officials in all six World Anti-doping Agency (WADA) Board and Executive Committee meetings.

The Minister and officials also attended two meetings of the International Intergovernmental Consultative Group on Anti-Doping in Sport (IICGADS), of which the Minister was the Co-Chair. The meetings were held in Moscow in December 2002 and in Copenhagen in March 2003 in conjunction with the World Conference on Doping in Sport. Departmental officials formed an integral part of the IICGADS Secretariat.

Australia was the primary drafter of two international anti-doping instruments, the Moscow Memorandum of Common Principles on Anti-Doping and the Copenhagen Declaration on Anti-Doping, the latter currently signed by over 70 countries with a further 28 pledged to do so. Officials in the Department coordinated international and domestic input, produced successive drafts and participated in international negotiations that led to the successful conclusion of these instruments.

The Department also had significant input to the development of the World Anti-Doping Code, coordinating responses from the Australian sporting community and other key stakeholders to various drafts of the Code. Australia's participation in these forums and its pivotal role in negotiating these two instruments has been commended by the President of the World Anti-doping Agency (WADA), Richard Pound QC.

During 2002-03, the Department administered grants under the Sport and Recreation Program (Anti-doping), whose priorities are to improve drug detection research, implement international best practice in testing and encourage international collaboration.

In 2002-03, the Australian Government provided funding of $789 366 for four projects selected by the Anti-Doping Research Panel as most consistent with the research priorities for 2002-03 (the first year in which funded projects were selected by the Panel). All funding was allocated to the successful proponents in accordance with funding agreements.

Australia also provides support for WADA, which promotes and coordinates the fight against doping in sport internationally. Australia was among the first nations in the world to make its allocated financial contribution of $372 634 during 2002-03.

Enhanced community awareness of and access to Australian history, culture and portraiture

Increase in understanding of Australian political history, culture and portraiture

Improved access through Old Parliament House (OPH) and the National Portrait Gallery (NPG) online activities and the NPG's touring exhibitions, publications and further development of the NPG's Circle of Friends

High-quality OPH and NPG programs, events and exhibitions which appeal to visitors and are perceived to be of a high quality as measured by visitor feedback and media commentary

Delivery of a wide range of public and education programs and exhibitions which highlight Australia's political history and cultural diversity and the development of portraiture

Public and education programs, exhibitions and events to interpret OPH as a key heritage site are attended by an increased number of people

Enhanced community access through OPH and NPG online activities, the NPG's touring exhibitions, publications and further development of the NPG's Circle of Friends

During the year, OPH and the NPG provided a range of activities for visitors to the OPH building. Details are provided under Output 1.3, on page 32.

In addition OPH, and the NPG provided a number of outreach activities. OPH provided online access to a range of resources through its website and provided improved access to the website during the year, especially for sight-impaired users or those connecting to the Internet in regional and remote areas.

The NPG's national outreach activities included:

• touring exhibitions (David Moore: From Face to Face, Tasmanian Museum and Art Gallery, 4 October to 17 November 2002 and William Yang: Australian Chinese, Brisbane City Gallery, 6 August to 13 October 2002);
• three exhibition catalogues and brochures;
• the regular Portrait magazine with four issues in 2002-03 and circulation increasing from 1000 to 2500;
• the growth of the NPG's 'Friends' group, The Circle of Friends, which is now in its second year with an approximately 90 per cent membership renewal rate. Nationwide membership increased from approximately 550 in 2001-02 to 750 in 2002-03; and
• online access through the NPG website. The NPG registered growth in use of its website, with an eight per cent increase in the numbers of page requests from 2001-02 to 2002-03.

In February 2003, OPH and the NPG were awarded the National Tourism Award in the cultural and heritage category for 2001-02. The award recognises OPH and the NPG as offering a unique experience to visitors linking history, heritage and culture to tourism.

DEPARTMENTAL OUTPUTS

Output 1.1 Strategic policy advice, support and awareness for the cultural and sport sectors

Timely and high-quality advice provided to the Government on cultural and sport matters, including legislative responsibilities, statutory and other appointments and policy matters

Policy advice

The Department provided strategic advice to the Government on a range of arts and sport matters during the year including:

• the Government's response to the Myer Inquiry into Contemporary Visual Arts and Craft;
• the Review of Cultural Agencies agreed in the 2002-03 Budget context;
• the integration of ScreenSound Australia with the Australian Film Commission from 1 July 2003. The Australian Film Commission Amendment Act 2003 received Royal Assent on 30 June 2003;
• foreign film production in Australia, including the refundable film tax offset;
• Australia's position on the treatment of measures supporting cultural objectives in bilateral and multilateral trade agreements and international fora;
• strategic issues for the collections sector;
• regional cultural policy issues;
• anti-doping in sport;
• implementation of the national strategy for the sport and leisure industry;
• coordination of the Australian Government's involvement in the Melbourne 2005 Deaflympics Games and the Melbourne 2006 Commonwealth Games; and
• governance issues for the portfolio agencies.

Ministerial support

During 2002-03, the Department prepared 444 briefs and 690 minutes on Arts and Sport issues for the Ministers, compared with 373 briefs and 534 minutes in 2001-02. Eighty per cent of briefs and minutes were provided within the initial requested timeframe, with alternative arrangements made with Ministers' offices for the remaining 20 per cent.

The Department received 1894 items of Arts and Sport related Ministerial correspondence during the year compared with 1516 in 2001-02. In 2002-03, 1043 letters were assigned for reply with 811 replies prepared. Of those, 110 (14 per cent) were returned for redraft compared with 88 replies (13 per cent) returned for redraft in 2001-02. As at 30 June 2003, there were 61 items of ministerial correspondence requiring a reply, with 23 per cent of those overdue. This compares to 30 June 2002, when 109 items required a reply, with 25 per cent of those overdue.

The Department assisted with 117 statutory and non-statutory appointments and reappointments to portfolio agencies and advisory committees during the year. The Department provided prompt assistance on these matters. The Department also provided briefings to new directors of portfolio agencies on their responsibilities and the public sector governance framework.

The Department also provided secretariat support to the review panel which undertook an evaluation of the National Museum of Australia's exhibitions and public programs during 2002-03.

Efficient and timely program administration

Film programs

Film Tax Incentives 10B and 10BA

In 2002-03, the Department received 202 provisional applications for certification under Division 10BA of the Income Tax Assessment Act 1936. Ninety per cent of the applications were processed within three weeks of receipt. This resulted in 172 eligible Australian films receiving provisional certification making investors eligible to claim the 100 per cent tax deduction under the scheme. In 2001-02, the Department received 255 provisional applications and issued 233 certificates.

In 2002-03, the Department received 108 final applications for certification under Division 10BA of the Income Tax Assessment Act 1936, significantly more than the previous year. Sixty-eight final certificates had been issued at 30 June 2003 compared with 82 final certificates from 85 applications processed in 2001-02.

As at 30 June 2003, the Department was waiting for further information from applicants on 11 of the 42 outstanding applications, before they could be finalised. Of the remaining outstanding applications, 21 were received in the last month of the financial year. The Department gave priority to processing the increased number of applications for provisional certificates lodged during that period as film producers rely on receiving provisional certificates before the end of the financial year as prerequisites to raising investment capital.

Foreign Actors Certification Scheme

The Department processed 76 applications providing certificates for 321 foreign actors coming to Australia to work on film and television productions. Of the complete applications received, 100 per cent were processed within the target time limit of five working days. The number of certificates issued in 2002-03 was seven per cent higher than in 2001-02.

Refundable Film Tax Offset

During the year, the Department received two applications under the Refundable Film Tax Offset Scheme - one for a certificate of eligibility for the tax offset and one for a provisional certificate of eligibility. Both applications were processed well within the published target timeframe of ten weeks as indicated in the guidelines.

Philanthropy programs

Cultural Gifts Program

The Department processed 746 new donation submissions and 62 valuer applications during 2002-03 compared with 484 new donation applications and 73 valuer applications in 2001-02. All applications were processed to ensure that they were submitted to the next Taxation Incentives for the Arts Committee meeting.

Register of Cultural Organisations

The Department assessed 82 applications for the Register of Cultural Organisations (ROCO) during 2002-03 compared with 75 in 2001-02. All applications were assessed against ROCO eligibility criteria and eligible applications were submitted in a list to the Minister for the Arts and Sport and the Minister for Revenue and Assistant Treasurer for their consideration every three to four months.

Register of Cultural Organisations and Cultural Gift Program clients are familiar with the provisions of the programs, including the new philanthropy measures

In order to raise awareness of the programs the Department implemented an enhanced communications strategy in 2002-03, which included:

• a significant update of promotional materials;
• 23 advertisements in a range of arts and finance media; and
• a ministerial letter to all Federal MPs and Senators, and State/Territory Arts Ministers.

During the year there was greater participation in the philanthropy programs. The number of organisations on the Register increased by 46 to 891 over 2002-03 and the reach of the Cultural Gifts Program was broader, with participating institutions increasing from 373 to 390 during the year.

Customer satisfaction with service delivery, using outcomes of Department's client survey in relation to the Arts and Sport - part of the review of the Service Charter

Information on the outcomes of the Department's Client Service Charter survey is provided at page 119.

Produce quality research and statistics to support the cultural and sport sectors

The Australian Government's contribution of 50 per cent of the funding of the Cultural Ministers Council Statistics Working Group (SWG) supported the cultural statistics activities of the Australian Bureau of Statistics (ABS), including the ongoing production of core cultural statistics by the ABS.

This program provides information required for an understanding of developments in the cultural sector. The contribution also funded a number of SWG projects which included work on estimating the retail sales value of Indigenous art and craft and the economic impact of cultural tourism. These projects address significant data deficiencies in high priority cultural areas.

The Department provides secretariat support for SWG's activities including two meetings during the year. Information on the work of the Recreation and Sport Industry Statistical Group is provided under Support the development of a cohesive, world-class sport and leisure industry at page 23.

Coordination mechanisms for the provision of Australian Government security and non-security support to the Melbourne 2006 Commonwealth Games are established

Extent to which Australian Government position and guidelines on provision of security and non-security services to support the staging of the Melbourne 2006 Commonwealth Games are defined

The Minister for the Arts and Sport chairs a Ministerial Committee, convened to consider the Australian Government's non-security support to the Melbourne 2006 Commonwealth Games (M2006 Games). The Treasurer, the Minister for Finance and Administration and the Minister for Justice and Customs are also members of the Committee.

The Ministerial Committee met in February 2003 to consider the national benefits and legacies that the Australian Government could derive through its involvement in the M2006 Games, and the policy positions and guidelines Australian Government agencies should adopt when providing specific non-security services.

A High Level Officials Group (HLOG) was also established during the year to provide advice and support to the M2006 Ministerial Committee. The HLOG, which is chaired by the Secretary of the Department of Communications, Information Technology and the Arts, met twice during the year.

The M2006 Inter-Departmental Committee continued to meet as necessary to convey information to relevant Australian Government agencies. A M2006 Communications Working Group was established to develop a whole-of-government communications strategy for the Australian Government's involvement in the M2006 Games.

In November 2002, the Government decided that M2006 security matters would be addressed through existing Australian Government security coordination mechanisms.

At the working level, representatives of relevant Australian Government agencies will convene in a M2006 Security Working Group established under the auspices of the Australian Government Counter-Terrorism Committee.

Output 1.2 Increase awareness, knowledge and understanding of the Centenary of Federation and encourage participation in events celebrating the Centenary

Degree of satisfaction of the National Council and the Minister with Secretariat services, quality and timeliness

Degree to which the communications strategy and the celebratory activities are effectively integrated to ensure widespread community knowledge and interest in the activities and the delivery of activities that are relevant to the community

The effective and efficient administration of the History and Education program

Levels of awareness across the community of the centenary and proposed celebratory activities increase (as measured by the community sample surveys)

The range of national celebratory activities are delivered around the country (featuring at least one major event in each State and Territory) and across the year (featuring a major event approximately every month of 2001) leading ultimately to widespread community involvement

The performance indicators for Output 1.2 refer to activities about which the Department reported in 2001-02. The National Council for the Centenary of Federation was disbanded in March 2002. However, minor funding was provided in 2002-03 to support finalisation of the program.

Through its History and Education Program, the Council offered grants to support projects encouraging Australians to gain a better understanding of the events leading to Australia's Federation, reflecting on the changes that had taken place in Australia in the past 100 years and looking ahead to Australia's future as a nation. All 120 projects funded under the program were completed by 30 June 2003.

The Council's website has been archived by the National Library of Australia's Pandora Archive and may be accessed at: http://nla.gov.au/nla.arc-10492.

Following the success of the Peoplescape concert and installation of November 2001, a book was published in late 2002 by Hardie Grant Books in conjunction with the National Council for the Centenary of Federation. The Peoplescape, celebrating Australians was written by Michael McKernan and tells the story of the Peoplescape. It includes images of the installation as well as the individual figures together with an index of those nominated and of the name of the nominator.

Output 1.3 Understanding and knowledge of Australian history, culture and portraiture through access to Old Parliament House and the National Portrait Gallery

Interpretation of OPH as a key heritage site in accordance with the OPH Interpretation Plan

Major interpretation of two key heritage spaces; four OPH exhibitions; commemoration of the 75th anniversary of OPH with a program of events, activities and public programs; six oral history interviews; six NPG exhibitions, with a range of educational and public events and activities to complement each exhibition; one NPG seminar; and a sponsored NPG anniversary lecture with a speaker of international status

Enhanced visitor experience through delivery of high quality visitor services, exhibitions, public and education programs at OPH and the NPG

Both OPH and the NPG offered a range of popular and well-received exhibitions, programs, tours and related activities and services in 2002-03. Visitor feedback, exit surveys and program evaluations showed positive responses, with 98 percent of visitors rating their experience as very good or good.

OPH undertook six key interpretation projects during the year including:

• interpretive panels in the Lobbies, reinterpretation of the Opposition Lobby, Senate, Government Party Room and President of the Senate Suite;
• interpretation of rooms representing the Liberal, Labor and National Parties (scheduled for completion in November 2003); and
• a self-guide interpretive pathway on women in the House.

The OPH Oral History Program - a valuable tool in increasing historic knowledge and facilitating interpretation of OPH - recorded 19 interviews this year, up from eight in 2001-02. Highlights of this year's program include a series of interviews with four former House of Representatives Clerks.

By comparison to six major and four minor exhibitions in 2001-02, OPH presented nine major exhibitions during 2002-03:

• Icons: Images of 20th Century Architecture;
• Our House: The Story Of Old Parliament House;
• National Schools Banner Competition exhibition;
• Seat of Power;
• Playing Politics: The Cartoons of Pickering & Pryor;
• In the Picture;
• Salt of the Earth;
• The Other Side of the Ditch; and
• Pierre Trudeau - 1968-84.

A range of relevant public programs, such as floor talks and four 'Night Sittings' panel discussions complemented exhibitions. OPH adopted a policy of assessing and evaluating all future exhibitions and programs during the year. Forward evaluation of major initiatives helps to inform decisions about exhibition development and content, as well as marketing strategies.

Enhanced visitor services provided by OPH during the year included:

• several new visitors' publications, including self-guided brochures in German, Japanese, Chinese and French and a self-guide brochure on the role of women in the House;
• a new family-oriented area and further Museum Theatre presentations focused on attracting family audiences;
• new tours and interpretive talks (a specialist political history tour and a talk about the Speaker's Chair); and
• new student programs were developed and existing programs and educational materials modified.

The NPG presented nine exhibitions during 2002-03, a reduction from 11 exhibitions in 2001-02. While there were fewer exhibitions in 2002-03, they were generally more substantial than in the previous year:

• Sir William Dargie: 90th birthday tribute exhibition;
• The Story So Far...National Portrait Gallery Collection;
• Bill Brandt: A Retrospective;
• Being Me: Headspace III;
• Contemporary Australian Portraits (presented at Commonwealth Place);
• Rarely Everage: The lives of Barry Humphries;
• POL: Portrait of a Generation;
• Lewis Morley: Myself and Eye (presented at Commonwealth Place); and
• Max Dupain: The Vintage Years.

The 2002-03 exhibition program both built on existing strengths (such as The Story So Far...) and explored new areas for the NPG. For example, Rarely Everage was the first NPG biographical exhibition, and possibly a world-first as a biographical exhibition on a living subject.

The NPG presented three lectures, nine seminars and one symposium during the year:

• a symposium, Art Museums: Sites of Communication was presented in partnership with the National Gallery of Australia on 14 and 15 March 2003, with 200 attendees;
• as part of Adult Learners Week, the NPG held four Learning Circle Workshops in September 2002, with 120 attendees;
• Sir Roy Strong, previously the Director of the NPG London and the Victoria and Albert Museum, gave a lecture, entitled The Artist, the Banquet and the Garden, to 350 guests on 11 February 2003, and also gave lectures in Melbourne, Adelaide, Sydney and Brisbane for the NPG to a further 1700 people; and
• James Elkins (Chicago School of Art Institute Professor of Art History, Theory and Criticism) presented How Portraits Work to 343 attendees on 14 June 2003.

This compared with six lectures and nine seminars in 2001-02. The events were well received - a number of Sir Roy Strong's lectures were sold out and the symposium generated positive feedback from industry peers.

Further development of a national portrait collection recognised for its national inclusiveness and quality

Relative increase in donations of works of art, project sponsorship and acquisition funds to the NPG

The NPG continued to develop its permanent collection, which consisted of 563 works (352 gifts and 211 purchases and commissions) as at 30 June 2003. The assessed value of the collection at the end of 2002-03 was $10.4 million. During the year the NPG acquired 136 works, including 101 gifts, for the collection. This compared with 243 acquisitions in the previous year, including 174 gifts.

Particularly significant additions to the NPG collection during 2002-03 included:

• gift of six portraits from Coles Myer Limited;
• gift of 13 portraits of art from John Fairfax Holdings Ltd;
• gift of David Strachan's portrait of Kenneth Rowell (transferred from the Art Gallery of New South Wales - gift of Margaret Olley);
• gift and purchase of 31 photographs by Max Dupain;
• photographs (Australian subjects) from Lewis Morley's exhibition Myself & Eye;
• Self-portrait and portrait of Ambrose Patterson by Hugh Ramsay; and
• Dame Joan Sutherland by Robert Hannaford.

Portraits of business people was one area in which the collection showed particularly strong growth during the year. The NPG's growing reputation was also evidenced by requests for loans of six works from its permanent collection.

Further development of the NPG as a centre for understanding of Australian portraiture and history

The November 2002 opening of the Commonwealth Place Gallery Annex, with its additional exhibition space and specific focus on contemporary Australian portraiture, has strengthened the NPG's role as a centre for the understanding of Australian portraiture and history.

Since the opening of Commonwealth Place, a number of successful educational programs have been delivered to upper secondary and tertiary students. The NPG also hosted professional development programs for schoolteachers and presented a range of public and educational programs.

Wider national reach of NPG programs, in particular through travelling exhibitions and through publications, catalogues and online programs

The NPG received several Museums Australia Publications Design Awards, celebrating excellence in design and communications of museum publications across regional and metropolitan Australia, including:

• exhibition and collection catalogue - So You Wanna be a Rock Star (highly commended) and Salvatore Zofrea: Fifty Portraits (short listed);
• poster and calendar - Rarely Everage (winner) and Bill Brandt (highly commended);
• magazine and newsletter - Portrait (winner);
• promotion - Rarely Everage (winner); and
• website - Rarely Everage (highly commended).

Details of the NPG's travelling exhibitions and outreach activities are provided at the under Enhanced community awareness of, and access to, Australian history, culture and portraiture, on page 26.

Increase in visitor numbers and the numbers of school groups participating in OPH and NPG education programs

Total visitor numbers in 2002-03 to OPH and the NPG Commonwealth Place Annex were 189 714. Visitor numbers to the OPH building dropped six per cent compared to 2001-02, from 171 489 to 161 213. However, since opening in November 2002, the NPG Annex has attracted 28 721 visitors. Total visitor numbers to the OPH building and the NPG Annex show a ten per cent increase on 2001-02 visitor numbers.

While overall visitor numbers to the Australian Capital Territory (ACT) were generally maintained in June-December 2002, a significant decrease of approximately 20 per cent occurred from January 2003, following the ACT bushfires. The drop in visitors to the OPH building is primarily attributable to a decrease in interstate visitation, consistent with declines in visitor numbers to all major ACT attractions.

School visitors to OPH increased slightly from 31 121 in 2001-02 to 31 575. Forty-one per cent of all interstate school groups visiting Canberra visit OPH, making it one of Canberra's most popular attractions for students. Feedback from surveys indicates that teachers are also very satisfied with their students' experience at OPH.

Conservation of OPH is carried out in accordance with the OPH 2000 Conservation Management Plan and heritage studies

Research and planning for projects such as the conservation of the original OPH kitchens

Repairs and maintenance of OPH are carried out in accordance with the OPH Master Building Plan

During the year, OPH developed and implemented a new five-year Capital Works Plan for a program of major refurbishment and restoration. The Capital Works Plan replaced the earlier Master Building Plan for OPH. A total of $2 991 000 in major capital works projects was expended in 2002-03.

Major projects commenced included:

• replacement of the roof at the front of the building;
• refurbishment of key exhibition spaces, the old Private Dining Rooms and upper floor of the Senate Wing;
• heritage analysis and scoping of works for the restoration of the Old Kitchens; and
• essential mechanical, plumbing and electrical services projects such as the removal of old and potentially hazardous wiring.

These works followed appropriate research and planning and address a range of conservation issues, occupational health and safety needs and emergency services requirements.

In addition to expenditure of $267 000 for building conservation works (included in the capital works expenditure noted above), $163 000 was expended on conservation works for the OPH furniture collection during 2002-03.

Major conservation works undertaken during the year included:

• maintenance of the Senate Wing upper floor and retention of its key heritage fabric;
• ongoing floor coverings conservation works; and
• conservation of the heritage furniture collection and general preventative conservation measures.

Such works ensure the ongoing preservation and integrity of the OPH building while also facilitating public display and access. All works were carried out in accordance with OPH's Conservation Management Plan, international standards and the legislative requirements of the Australian Heritage Commission Act 1975.

ADMINISTERED ITEMS

Cultural Development Program (including grants to cultural agencies and support for cultural activities)

A total of $37.26 million was allocated to the Cultural Development Program (CDP) in 2002-03 for a range of cultural activities, including the national cultural and touring programs and support for cultural organisations such as the national arts training institutions, Film Australia Limited, and the Australia Business Arts Foundation. Distribution of CDP funding is approved by the Minister on an annual basis.

Specialist advisory committees appointed by the Minister for the Arts and Sport assessed applications for the cultural and touring programs against approved guidelines and made recommendations to the Minister on which projects should be approved.

The Committees were supported by departmental secretariats. Feedback on the secretariats' performance was very positive in terms of the overall quality and timeliness of advice and services provided by the Department.

Extent of compliance by grantees with funding agreement

The Department provides funding in accordance with agreements that require grantees to meet rigorous accountability and reporting requirements.

During the year, 94 per cent of Visions of Australia grantees and 90 per cent of Playing Australia grantees fulfilled their funding obligations. While comparative figures are not available for 2001-02, compliance by applicants for funding under these programs is consistently high. This is because many applicants seek funding more than once and applicants are ineligible if previous Australian Government grants have not been acquitted.

Of Festivals Australia grantees, 65 per cent fulfilled their funding obligations compared with 31 per cent in the previous year. Lack of compliance generally relates to failure to acquit grants within three months from the end of the tour or festival. A number of Festivals Australia acquittals were outstanding at 30 June 2003. The Department reminded grantees of their obligations to acquit their grants, noting that many acquittals are received within a few weeks of the deadline. The first round of Contemporary Music Touring Program grants were approved in 2002-03 with first acquittal reports due in 2003-04.

Seven arts training organisations received total Australian Government funding of $11.9 million during 2002-03. The National Institute of Dramatic Art, the Australian Youth Orchestra, the Australian Ballet School, the National Institute of Circus Art, the Australian National Academy of Music and the Flying Fruit Fly Circus fully complied with the terms of their funding agreements. The Department provided assistance to the National Aboriginal and Islander Skills Development Association in meeting its funding obligations in light of governance issues identified during the year.

Other funded organisations such as the Australia Business Arts Foundation (AbaF), Film Australia and AusFILM complied fully with the terms of their funding agreements. The Department identified some minor issues for the Australian Children's Television Foundation (ACTF) in relation to separate ledger requirements for Australian Government funds. These issues will be resolved during 2003-04.

The cultural organisations funded under the CDP achieved a number of outcomes consistent with the terms of their grants during the year:

• there were 95 graduates of the training institutions compared with 91 in 2001-02. (These figures do not include the Australian Youth Orchestra and the Australian National Academy of Music as they do not offer degrees to students, nor the National Institute of Circus Arts as its first intake of students will not be graduating until 2003);
• there were 4007 applications for placement in the training institutions, an increase of 13 per cent compared with 3561 applications in 2001-02. These resulted in 628 successful applicants compared with 754 in 2001-02, a decrease of 17 per cent compared with that year but an increase of nine per cent compared with 2000-01;
• Film Australia delivered 21 National Interest Program titles by 30 June 2003, consistent with its obligations to produce 100 programs under its five-year contract with the Department; and
• production funding was approved by the ACTF for Holly's Heroes and script development funding provided for ten projects.

Funding delivered promptly to recipients in accordance with funding agreements

The Department provides funding to grantees as outlined in funding agreements, which specify the timeframes in which grant instalments will be paid (timeframes vary according to the nature of the grant).

The Department achieved 100 per cent compliance in providing funding within the timeframes specified in funding agreements to all cultural organisations which receive funding through the CDP, including the arts training institutions, Film Australia, the ACTF, AusFILM and AbaF. This is consistent with the Department's performance in 2001-02.

In 2002-03, the Department provided 100 per cent of grant instalments for the cultural and touring programs, Playing Australia, Festivals Australia and Visions of Australia, in accordance with funding agreements. This is consistent with the Department's performance in 2001-02.

The Department requires evidence of current public liability insurance before finalising funding agreements. However, as at 30 June 2003, 30 per cent of Contemporary Music Touring Program clients had not finalised their public liability obligations, because of low levels of pre-existing public liability insurance. This led to delays in the Department finalising agreements and making grant payments to those clients.

Cultural Ministers Council (CMC) and stakeholders are satisfied with the management of National Collections Advisory Forum Secretariat and work program

The National Collections Advisory Forum is convened and advice on its terms of reference is provided back to the CMC

The National Collections Advisory Forum met three times in 2002-03 and reported to both the CMC Standing Committee and the CMC during the year.

The Forum prioritised the following items on its work program:

• a feasibility study on a representative industry body for the collections sector;
• the development of a National Collections Strategy;
• the development of significance training materials for volunteers;
• a pilot project to test the feasibility of a regional outreach network; and
• a feasibility study on developing collections management benchmarks for the sector.

CMC endorsed the work program at its March 2003 meeting and asked that the Forum report back to Ministers in August 2003 on the feasibility of establishing an industry body to represent the collections sector.

Feedback from the Chair of the Forum, Professor Margaret Seares, during the year has been very positive, including in relation to the timeliness of secretariat services and the quality of advice provided to the Forum.

Percentage of Indigenous communities notified of the existence of their cultural property in Australian and State Government museums compared with the number of communities' cultural property represented in these museums' collections

The Department manages the Return of Indigenous Cultural Property (RICP) program for the CMC. Participating museums have advised that 80 per cent of all relevant communities have been notified of their holdings, and provenance research on the remaining holdings will continue in 2003-04.

The RICP program has now been extended to December 2005, reflecting the complex nature of the repatriation process and the need to ensure that Indigenous communities are appropriately consulted and have the opportunity to participate in the repatriation of their cultural property.

Targeted online resources meet the key needs of regional collecting institutions

Australian Museums and Galleries Online (AMOL) redevelopment scoped and expansion to cover the collection sector commenced

To assist regional collecting institutions, AMOL currently provides a range of resources including:

• search access to 92 collections and 500 000 object records under the Open Collections facility;
• communication support through the Museum Forum;
• resources and training, including digitisation, support through Museum Craft and Discovernet - a gateway to museum education resources; and
• thematic case studies and other products including the National Exhibition Venues Database, ResourceFinder, reCollections, BePrepared, Significance and TOUR (refer www.amol.org.au).

At its May 2002 meeting, the CMC agreed that the Department would manage a Business Analysis Review of the AMOL website to inform the Ministers' consideration of redevelopment options.

The Review consultancy was completed in March 2003 following consultations with all State and Territory Governments, 31 State and Territory collecting institutions and 11 industry bodies. The redevelopment report proposes that the website focus its resources on the small-to-medium regional collections sector and extend its scope to include libraries, museums, archives and galleries.

The Review was considered by the CMC at its March 2003 meeting, at which Ministers asked the Department to consult further with stakeholders on some remaining policy and technological issues. As at 30 June 2003 an additional round of consultations with State and Territory stakeholders was nearing completion.

Further information on AMOL is provided under Improved Access to Cultural Activities at page 19.

Educational Lending Right Scheme - Book Industry Assistance Package and Public Lending Right Scheme

Client satisfaction with the delivery of the Public Lending Right and Educational Lending Right Schemes

The Educational Lending Right Scheme (ELR) is one element of the four-year Book Industry Assistance Package. The ELR scheme makes payments to eligible Australian creators and publishers whose books are held in educational lending libraries. The ELR scheme complements the Public Lending Right (PLR) scheme, which compensates creators and publishers whose books are held in public libraries. Both programs also support the enrichment of Australian culture by encouraging the growth and development of Australian writing and publishing.

The trend since 2000-01 reflects a growing usage of ELR and PLR by creators and publishers, as detailed in Table 5.

Table 5: Use of ELR and PLR, 2000-01 to 2002-03

ELR

PLR

Direct feedback from PLR and ELR clients, indicates a high level of satisfaction with the operation and management of both Lending Right schemes.

The Chair of the Public Lending Right Committee noted that the performance of the PLR staff during the year was very good to excellent, and that the efficiency of the PLR Committee is due to their commitment and expertise.

Production by the Australian Bureau of Statistics of book publishing and retailing surveys under the Plan's Statistics Program

During the year, the Australian Bureau of Statistics produced the reports Book Publishers 2000/01 and Book Retailers 2000/01 in accordance with its agreement with the Department. These publications provide data to assist in monitoring developments in the book industry and to assist in policy development for the sector.

Federation Fund

Compliance of funding agreements with Australian and State Government environment, heritage, construction and audit requirements

Proportion of Federation Fund projects completed in accordance with program objectives, and extent of that completion

The Federation Fund provided $434 million to contribute to the enhancement of Australia's cultural heritage through a range of large and small infrastructure projects, and to help celebrate the Centenary of Federation in 2001.

Of funding agreements for Federation Fund projects, 100 per cent required compliance with:

• relevant Australian Government, State, Territory and local authority environmental, heritage and planning laws;
• the National Code of Practice for the Construction Industry and Industry Guidelines; and
• all relevant statutes, regulations, by-laws, and requirements of any Australian Government, State, Territory or local authority.

The program was announced in 1998, with projects expected to be completed or substantially completed in the centenary year. As at 30 June 2003:

• 71 per cent (12) of the 17 Major Federation Fund projects had been completed. One Major Federation Fund project was completed during the year, with a further five still to be completed. Of these, four are expected to be completed in 2003-04 (the Government is still assessing options regarding the Holsworthy Rifle Range project and is yet to make a decision on how to proceed with the project);
• 93 per cent (26) of 28 Federation Cultural and Heritage Program projects have been completed. The remaining two projects are expected to be completed in 2003-04;
• 99 per cent (989) of 1003 Federation Community Projects had been completed with 14 projects still to be completed. The program will be finalised by the end of 2003.

Commonwealth Technology Port (Comtechport) is a high-technology precinct within the Melbourne Docklands development. A final payment of $8 million was made during the year to the Victorian Government for the Comtechport project. Construction of the first building on the Comtechport site commenced in March 2003 as scheduled and is expected to be completed by the end of 2003.

Sports and Recreation Program (anti-doping)

Anti-doping funding distributed to projects addressing agreed priorities

Compliance with grant conditions

Australian Government engagement with the World Anti-Doping Agency and other governments, and participation in international anti-doping forums, enhances international anti-doping initiatives

Funding fully allocated to stakeholders in a timely manner

Details on the Sports and Recreation Program (anti-doping) are provided under Promotion of effective anti-doping measures in sport, both nationally and internationally at page 25.

Water and alpine safety

Funding allocated in accordance with agreed priorities

Extent of compliance with grant conditions

Funding fully allocated to stakeholders in a timely manner

The Australian Government's objectives for water and alpine safety are to reduce the number of drownings, aquatic and skiing accidents and to enable all Australians to participate safely in water and alpine activities.

National trends show 251 people drowned in preventable water-related activities during 2001-02, representing a four per cent decrease on the five-year average. The most recent data available showed that the death rate per 100 000 people decreased from a five-year average of 1.40 to 1.28 during 2001-02, representing a decrease of nine per cent.

Funding priorities to support improved water and alpine safety include:

• management of aquatic locations;
• water safety education;
• alpine rescue service provision; and
• alpine safety education and public awareness campaigns.

During 2002-03, the Australian Government provided total funding of $1.992 million to promote water and alpine safety initiatives, including:

• $1 547 159 in base grant funding through the National Recreation Safety Organisations Program to Surf Lifesaving Society Australia, Royal Life Saving Society Australia (RLSSA), AUSTSWIM, and Australian Ski Patrol Association (ASPA) to address priorities for water and alpine safety; and
• a further $445 000 for ten special purpose water and alpine safety projects to support a range of activities including lifesaving education and scholarships for the international ski congress to be hosted by Australia.

Of grant recipients, 100 per cent fulfilled each obligation of their funding agreement within the 2002-03 financial year, including achievement of a number of safety objectives, such as:

• provision of RLSSA water safety courses to over 750 000 participants. The most recent data available as at 30 June 2003 showed that the number of drownings of Australian children five years or younger in 2001-02 was down 25 per cent on the five-year average; and
• provision by ASPA of national standard first aid training for all member Australian Ski Patrols and also to the Victorian Nordic Rescue Service and Victoria Police Search and Rescue. ASPA trained patrollers attended approximately 10 000 incidents during winter 2002.

The Department provided 100 per cent of payments to grantees according to the requirements of funding deeds and all funding within the National Recreation Safety Organisations Program was paid to stakeholders within agreed timeframes during the financial year.

¹ The Australian Film Commission information is collected on the basis of calendar years to reflect the industry's cycles. Details for the first half of 2003 will be available in November 2003.

² The National Guide is a database of Australia's collecting organisations and their collection strengths. The Guide's aggregator functions have supported award winning tourist trails and cross-regional thematic stories.