Level 1, 15-17 Queen Street Melbourne Victoria 3000 T 61 3 8614 2000 F 61 3 9614 1166 W www.liveperformance.com.au ABN 43 095 907 857 30 November 2015 Dr Helen Nugent AO Chair, National Opera Review National Opera Review Secretariat Robert Garran Offices 3 5 National Circuit BARTON ACT 2600 By email: operareview@arts.gov.au Dear Dr Nugent AO, LPA Submission to National Opera Review Discussion Paper Live Performance Australia (LPA) welcomes the opportunity to provide comment on the National Opera Review Discussion Paper ( Discussion Paper ). ABOUT LPA LPA is the peak body for Australia s live performance industry. Established in 1917 and registered as an employers organisation under the Fair Work (Registered Organisations) Act 2009, LPA has over 400 Members nationally. We represent commercial producers, music promoters, major performing arts companies, small to medium companies, independent producers, major performing arts centres, metropolitan and regional venues, commercial theatres, stadiums and arenas, arts festivals, music festivals, and service providers such as ticketing companies and technical suppliers. Our membership spans from small-medium and not-for-profit organisations to large commercial entities. LPA has a clear mandate to advocate for and support policy decisions that benefit the sustainability and growth of the live performance industry in Australia. All of the government-funded Major Opera Companies are LPA Members, as is Victorian Opera. LPA POSITION SUMMARY 1. LPA s submission argues that the Government needs to clearly identify its objectives for securing the opera sector in Australia. We submit that the fundamental questions the National Opera Review ( Review ) should address are: What is the national strategic vision for opera in the 21st century? What strategic objectives should be pursued to achieve this vision? What resources are required to secure the opera art form and business in Australia? 1
2. The issues of Major Performing Arts (MPA) Governance addressed in the Discussion Paper are beyond the scope of this Review. It is not appropriate for this Review to address or provide recommendations on the governance of Australia s major performing arts companies. LPA would not support any recommendations or actions that increase government intervention in the management and operation of the major opera companies, or any other major performing arts companies. 3. The National Opera Review provides a unique opportunity to set the foundations for a strategic and holistic national vision for securing a dynamic and vibrant future for opera in Australia. The future sustainability and growth of the opera sector is dependent upon opera companies being provided with adequate autonomy, resources, collaborative opportunities, flexibility and support for innovative practices. 4. With regard to the national opera company, Opera Australia, as our national flagship company, is significant in size and scope but for it to continue to operate at an international standard, Government should be clear on the strategic role of the company, and resource it so that it can meet its strategic objectives. Moreover, if the national company is expected to tour then it needs to be resourced adequately to do this. 5. A one-size fits-all approach to addressing individual state opera issues is not an effective means for meeting public value outcomes in each state. A flexible state-by-state approach should be adopted in which the state opera companies are provided with support and flexibility to address state issues with solutions tailored to meet the individual needs of their state. 6. The industrial proposals suggested in the Discussion Paper to renegotiate terms of employment for artistic and technical employees, as well as reduce the number of international singers and choose repertoire that uses available Australian singers, fails to recognise that opera companies operate within a wider performing arts ecosystem, and that any recommendations made regarding the opera sector may have substantial flow-on effects to the broader performing arts industry. LPA has provided further detailed commentary on our position in our submission attached. Should you have any queries regarding our submission, or would like to discuss these issues further, please do not hesitate to contact LPA at any time. Yours sincerely, Evelyn Richardson Chief Executive E erichardson@liveperformance.com.au 2
National Opera Review Discussion Paper LPA SUBMISSION INTRODUCTION Live Performance Australia (LPA) welcomes the opportunity to provide comment on the National Opera Review Discussion Paper ( Discussion Paper ). LPA s submission is informed by feedback received from our opera company membership, including the government-funded major opera companies and Victorian Opera. LPA s submission argues that the Government needs to clearly identify its objectives for securing the opera sector in Australia. We submit that the fundamental questions the National Opera Review ( Review ) should address are: What is the national strategic vision for opera in the 21st century? What strategic objectives should be pursued to achieve this vision? What resources are required to secure the opera art form and business in Australia? LPA has chosen not to comment on the business operations or management of any specific opera company. Our opera company members will make submissions on their own behalf. 1. Terms of Reference and Evidence-base LPA has some concerns regarding the rigour and evidence-base that the Discussion Paper is based upon and the extent to which the Discussion Paper goes beyond the Review s Terms of Reference. The Review panel should be mindful that the opera companies operate within a wider performing arts ecosystem, and that any recommendations made regarding the opera sector may have substantial flow-on effects to the broader performing arts industry. We also note the relationship between the major opera companies and orchestras may be impacted by any final recommendations made. 1.1 Rigour of Discussion Paper The Discussion Paper provides significant detail and a considerable number of options for a range of identified issues in the opera sector. LPA believes it is important to note that the Discussion Paper lacks rigour in certain areas, which if not addressed could result in misinformed recommendations. 3
The Discussion Paper does not provide international benchmarks for analysing and comparing the state of opera and the role of our national opera company in Australia with overseas examples. A rigorous review of the opera sector, and particularly the role of a national opera company, must be informed by international examples and benchmarks to provide valuable insight into how Australia compares internationally and how similar issues have been addressed by international counterparts. Commentary on the financial status of individual companies is proffered in the Discussion Paper that provides a misleading portrayal given that financial data for the opera companies is only considered up to December 2014. Therefore, the commentary on company financials is not an accurate reflection of their current financial viability. The Review Panel must ensure that all relevant evidence is carefully considered and accurate before submitting recommendations to Government that may have significant implications for the sector. The landscape for opera has changed considerably over the past twenty years. The Discussion Paper recognises that audience expectations and the social context in which opera is presented have changed, all against a backdrop of declining audiences for opera internationally. However, in examining the responses of the various opera companies the Discussion Paper appears to give disproportionate attention to the importance of subscribers. As subscription as a mode of attendance decreases world-wide, the importance of developing new audiences is increasingly important. This factor needs to be recognised in any consideration of future strategies. 1.2 MPA Governance LPA notes that Major Performing Arts (MPA) Governance issues addressed in the Discussion Paper are outside the scope of the Review. The Terms of Reference strictly limits the Review to issues specifically relating to the four major opera companies. The options stated in the Discussion Paper for MPA Governance have significant flow-on implications for all 28 major performing arts companies. Therefore, it is not appropriate for this Review to address or provide recommendations on the governance of Australia s major performing arts companies. LPA strongly argues that to date no evidence has been provided to suggest that the current MPA model is broken. Changes to MPA governance should only be considered if evidence arises that implies the model should be reviewed. If any consideration of changes to MPA Governance were to be pursued, it would require a separate review and extensive consultation with all of the MPA companies outside of the National Opera Review. 4
LPA strongly supports the current model in which all major opera companies work in partnership with Government, yet operate as autonomous entities that have their own individual boards, governance structure and management capabilities. Any recommendation for increased direct intervention by Government undermines the partnership model for opera companies with Government and could limit the ability of company boards to fulfil their legal obligations. LPA would not support any recommendations or actions that increase government intervention in the management and operation of the major opera companies, or any other major performing arts companies. Any proposal to turn back the clock and impose government intervention would not be appropriate and runs counter to well established principles that were developed to foster diversification of revenue streams and innovation, both artistically and operationally. 2. Sustainability and Growth of Opera in Australia in the 21 st Century The live performance industry operates within a globalised context and the opera sector is no exception. Opera companies in the 21 st Century are facing new challenges such as the changing nature of how audiences enjoy art, changing consumer behaviour due to technological advances, increasingly diverse audience demographics, and the evolving artistic language of contemporary opera. To secure the future sustainability and growth of opera in Australia, the fundamental questions this Review should address are: What is the national strategic vision for opera in the 21st century? What strategic objectives should be pursued to achieve this vision? What resources are required to secure the opera art form and business in Australia? The Discussion Paper provides a substantial number of options for addressing primarily operational issues of individual companies. Overall, these options lack cohesion and are often contradictory. LPA recommends that the Review Panel should focus on developing cohesive recommendations that address how we secure opera in Australia for the 21st Century. LPA has provided suggested values that the Review should base their final recommendations upon that we believe the future sustainability and growth of the opera sector is dependent upon. This includes opera companies being provided with adequate autonomy, resources, collaborative opportunities, flexibility and support for innovative practices. These values are addressed in further detail throughout this section of our submission. 2.1 Autonomy As stated on p.4 of LPA s submission, LPA would not support any recommendations or actions that increase government intervention in the management and operation of the major opera companies. 5
This would undermine the current roles and relationship between Government and the major opera companies. The role of Government is to define the expected outcomes from financially supporting opera companies that will deliver value to the public. It is the role of the opera companies, with expert company boards and management, to determine how best to deliver on these expected outcomes. LPA would argue that Government should not interfere in the day-to-day corporate governance, management, and artistic operations of the major opera companies. Red tape and government micromanagement of opera companies may stifle further creativity and increase burdens that limit their ability to provide high-quality opera to the Australian public. The autonomy of opera companies should be upheld and a strict separation between Government oversight and internal company management maintained. 2.2 Resources For opera companies to produce and present opera to a high-quality international standard as expected by Australian audiences, companies must be adequately resourced and funded. Currently, opera companies are required to deliver activities and outputs expected by Government that they are not adequately funded to deliver. This places an excessive financial burden on companies and restricts their ability to achieve their strategic and artistic goals. The Discussion Paper proposes opera companies adopt a range of costly initiatives, such as commissioning more works created in Australia or increasing the number and size of regional tours. These are exceedingly costly ventures with potentially low revenue returns. Although these are important initiatives, they cannot be achieved without an equivalent increase in funding support. A key issue facing the opera sector is the growing discrepancy between the income that can be generated and the cost of delivery, particularly of mainstage opera. LPA strongly argues that the Review needs to clearly identify the role and objectives of each of the companies and resource them properly. Each of the companies has different objectives and cost structures which need to be considered, particularly in relation to the commissioning of new work, audience development and touring. 2.3 Collaboration Collaboration drives innovation and ingenuity that is needed to inspire and engage Australian audiences. An environment of collaboration should be encouraged between the major opera companies, with international opera companies, other arts organisations, festivals, commercial entities or any other advantageous partnership that can inspire exciting collaborative projects that contribute to the growth of an exuberant culture of opera in Australia. 6
The Discussion Paper infers that opera companies should not engage in commercial partnerships, particularly in reference to the commercial musical theatre initiatives pursued by Opera Australia. Creative mechanisms of collaboration that allow opera companies to diversify their income streams in the current climate of limited Government funding and increasing production costs should be encouraged. Opera companies are dependent upon the generation of box office and private sector income to support all their activities, including those that operate at a loss but provide public value, such as the development of artists and commissioning of new work. Collaboration between major performing arts companies and commercial partners has been widely adopted and successful, for example the Melbourne Theatre Company s co-production of the Helpmann Award-winning musical ONCE with the Gordon Frost Organisation in late 2014. There are other numerous examples here and internationally of such collaborations (e.g. Matilda, Les Misréables, War Horse, Nicholas Nickleby, etc.), many of them highly successful. LPA does not support Government limiting the ability of opera companies to collaborate with the commercial sector, or any other potential collaborative partners. LPA would argue that all major opera companies must be provided with flexibility to pursue collaborative opportunities, depending on their expertise, circumstances, target audiences and objectives without rigid requirements set by Government. 2.4 Artistic Vibrancy, Innovation and Flexibility The nature of the operatic art form and audience behaviour is transforming in the context of a changing contemporary environment, requiring opera companies to adapt to these changes with innovative practices, productions and projects that ensure opera, as an art form and business is sustainable in the future. The growth of opera in Australia will depend upon the provision of a flexible environment in which opera companies have the ability to make creative and innovative decisions that engage audiences and enable growth. This includes flexibility in funding arrangements, programming decisions, and collaborative projects. For opera companies to respond innovatively to the evolution of the opera art form in the 21 st Century, Government must support experimentation and new ideas by opera companies. Government can encourage opera companies to invest in greater innovation by fostering an environment that encourages risk-taking, creation and presentation of new and original Australian work, presenting opera through alternative contemporary means, and re-imagining ways to engage audiences with opera. This may see some failures as well as successes, but if Government is serious about growing the art form and leveraging our local capability then it must be prepared to provide support for experimentation. 7
The Discussion Paper recognises the need for more new and original operatic works created in Australia to be commissioned and presented. It is well-understood that the cost of presenting new work is much higher and riskier than producing established works. Therefore, LPA recommends that additional funding support be provided specifically for the creation and presentation of new and original opera works created in Australia. Government should encourage and support a flexible environment in which companies can make artistic decisions on diverse programming, whether it is the presentation of traditional mainstage opera, contemporary alternative mechanisms for presenting opera or partnering in commercial production ventures. Strict limitations imposed by government on diverse programming decisions will restrict the ability of opera companies to engage audiences in high-quality innovative works of an international standard. 3. The Role of National and State-based Opera Companies The national and state opera companies should operate in a manner that complements each other to the greatest benefit of all Australians. This requires Government, in consultation with the major opera companies, to set clear and reasonable expectations of each of the major opera companies that meet the purpose of each company and the needs of their target audiences, particularly in regard to touring and collaboration between the companies. With regard to the national opera company, Opera Australia, as our national flagship company, is significant in size and scope but for it to continue to operate at an international standard, Government should be clear on the strategic role of the company, and resource it so that it can meet its strategic objectives. Moreover, if the national company is expected to tour then it needs to be resourced adequately to do this. It is important to acknowledge that each state has different geographical circumstances, audience expectations, and artistic objectives. Therefore, a one-size fits-all response to addressing individual state issues, such as regional touring, funding arrangements, or number and type of productions presented, is not an effective means for delivering public value in each state. A flexible state-by-state approach should be adopted in which the state opera companies are provided with the support and flexibility to address state issues with solutions tailored to meet the individual needs of their state. 4. Industrial Relations The proposal to renegotiate terms of employment for artistic and technical employees fails to recognise that opera sits within the broader live performance industry operating under the Live Performance Award 2010 and industry-wide enterprise agreements (such as the Performers Collective Agreement). 8
The high production costs and supply chain pressures are true across the live performance sector and opera should not be treated in isolation from other live performance genres. To do so would be to ignore the broader industrial context of these pressures and would be detrimental to the wider industry. Similarly, the proposal to reduce the number of international singers and choose repertoire that uses available Australian singers does not recognise that opera, and live performance more broadly, is a globalised industry. While clearly it is desirable to support and foster local talent, international performers can bring both experience, knowledge and global audiences that bolster local productions and situate Australia within the international context. 5. CONCLUSION Australian opera companies must innovatively adapt to changing audience behaviour, public expectations, cultural dynamics and the evolution of opera as an art form in the 21st Century. This Review provides a unique opportunity to determine a national strategic framework to sustain a vibrant and innovative future for opera in Australia. LPA recommends that a national strategic vision and objectives for securing opera in Australia be the primary basis for any recommendations made by the National Opera Review Panel. 9