Decline in Lotto revenue to affect the arts 1 Apr 2016
Related articles
- Australia Jumping on the Boy Bandwagon Living
- Minister launches SmartGate in Wellington Travel
- Waitakere Mayor championsing NZ film in China Living
- Wellington Band At Top British Film Awards Living
- Sludge Report #192: The Naked Budget Columns
- Budget 2010 – Building the Recovery News
- Budget provides $321m for RS&T activities News
- New Zealand Music Month turns 10 Living
- NZ economy expands at fastest pace in two years Business
- New Zealand Short Film Wins At Sundance Living
Decline in Lotto revenue to affect the arts
Creative New Zealand is reviewing its budgets for the 2016/17 financial year and beyond, following a further forecast decline in revenue from New Zealand Lottery Grants Board (NZLGB) for the 2015/16 financial year.
The Arts Council of Creative New Zealand receives approximately two-thirds of its revenue from Lotto NZ profits via a grant from the New Zealand Lottery Grants Board. The remainder of revenue is mostly from the Crown through the Ministry for Culture and Heritage ($15.69 million).
“The arts sector has benefited from steady increases in lottery profits peaking at $37.38 million in 2013/14, which was a record profit year for Lotto NZ. In 2014/15 revenue fell to $31 million and this financial year our latest forecast revenue from the NZLGB is $26.31 million, which is $3.69 million less than forecast at the start of the year,” said Creative New Zealand Chief Executive Stephen Wainwright.
“Creative New Zealand now stands to receive $11 million less this financial year than it did two years ago in 2013/14.
“Since 2014/15 Creative New Zealand has been using financial reserves to cushion the effect on the arts sector and has reduced spending in the 2015/16 financial year by not renewing pilot projects. Unfortunately we are now unable to sustain our current level of support for artists and the arts in the coming financial year,” said Mr Wainwright.
Creative New Zealand expects to invest $44 million in the arts and arts organisations in 2015/16 financial year. Based on current projections this will reduce to $38 million in the 2016/17 financial year. The Arts Council will look at a range of budget scenarios for 2016/17 with a final decision in July 2016.
“If NZLGB forecasts reduce further, the Arts Council will need to further reduce its expenditure,” said Mr Wainwright. “In the meantime we are advising individuals and organisations to plan ahead by developing budget scenarios that assume up to 10% less financial support from Creative New Zealand.”
Creative New Zealand’s operating costs have stayed the same in dollar terms since 2008 as investment in the arts has increased.
“In the short term we will make cost savings. In the medium term we are changing how we deliver our services so we do this at lower cost. We will also continue to advocate for the value of the arts and the importance of our ongoing investment in the arts sector,” Mr Wainwright said.
“Three ways New Zealanders can help mitigate the negative effect of the decline in revenue is by going to the arts, giving to the arts, or buying a Lotto ticket.”
Notes to editors:
• The NZLGB allocates 15% of its available funding to Creative New Zealand under section 279 of the Gambling Act 2003 and provides quarterly forecasts of anticipated revenue.
• Up to the last two years, Lotto NZ’s profit, and therefore revenue from the NZLGB, were more than expected. This benefited organisations that receive revenue, including Creative New Zealand, Sport NZ and the NZ Film Commission. Revenue received by Creative New Zealand was passed on to the arts sector through grants and initiatives.
• Creative New Zealand revenue (million):
Year | MCH | NZLGB | Other | Total • |
2015/16 | $15.69 | $26.31* | $2.44** | $44.68** |
2014/15 | $15.69 | $31.07 | $1.86 | $48.62 |
2013/14 | $15.69 | $37.38 | $1.11 | $54.18 |
2012/13 | $15.69 | $31.02 | $1.69 | $48.40 |
2011/12 | $15.69 | $27.52 | $0.98 | $44.19 |
* NZLGB forecast as at 29 March 2016
** Estimated
• In 2014/15 the Arts Council decided not to extend pilot projects beyond their end date including the already completed Creative Giving Pilot and the Sector Development Incentives Fund which ended in June 2016.
• The Arts Council also decided to discontinue Earthquake Recovery Grants for Christchurch artists and arts organisations in June 2016. All Creative New Zealand’s existing funding programmes will be available to applicants from Christchurch.
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more