Screen Australia has announced how it will save more than $5m this year with measures including lowering its maximum investment in films to $2m, cutting 12 full time staff members and shedding $500,000 from marketing support. The publicly-funded body which provides grants to Australian film and drama producers was handed a $25m cut to its budget by the Federal Government over four years in May’s budget, and has undertaken a review of its processes to find where it could make the savings.
Training funds are also set to be cut with $400,000 stripped from the Talent Escalator program, whilst there will be a “transition away” from direct funding for screen resource organisations, with a move to commission them to do professional development activities handled in house.
Staff cuts will see the body reduced to effectively half of its 2008 size, with 100 full time employees as opposed to 190. CEO Graeme Mason said the review had led to a “renewed focus on the core business of the agency”.
In a posting on the Screen Australia website today Mason wrote: “We are streamlining our operations and making processes simpler and easier for industry, and to the greatest extent possible we have tried to maintain funding for on-screen production. We have also had to make difficult decisions, including a further 10 per cent reduction in staff, cuts to professional development and marketing initiatives, transitioning away from funding industry training organisations, and a relatively small reduction in production investment and project development.
“There are challenges before us, but I also see great potential. We will back our creative talent to capitalise on opportunities and take more Australian stories out to the world. We will grow the pie for Australian production by facilitating international collaborations, using advantages such as our talent and our world class production reputation.
“We will reduce process as much as possible and step out of the way of industry, providing more funding as grants, with no copyright interest, so that producers keep more revenue from their productions. We will encourage new models of digital production and distribution that ensure our industry continues to evolve with its audiences.”
AS well as the cuts the review has changed some processes of the organisation, including making all funding up to $500,000 a grant and relinquishing copyright on projects with that level of funding, with a new online application system to be introduced.
The marketing and state of industry departments will be abolished and replaced with a business and audience department to place more emphasis on business development, whilst funding to send talent and producers to international festivals to support their films, which drew criticism last year, have also been revised.
From the Screen Australia announcement:
Key changes 2014/15
In the context of reduced funding, Screen Australia has reviewed its programs to sharpen the focus on where we add the most value. We have also reviewed how these programs are delivered to find greater efficiencies, reduce overheads and simplify processes. Resulting changes are outlined below.
Processes
New terms, effective for applications received from 24 July 2014, will benefit producers:
• All funding up to $500,000 (except P&A loans) will be a grant. This will provide more equity for the producer as well as simplify the contracting process (previously the grant threshold was $200,000, and limited to documentary and some other programs).
• Screen Australia will also relinquish copyright in favour of the producer for all projects up to $500,000, retaining a 1 per cent share only in projects for which we provide recoupable investment.
• These policies will be reflected in revised Terms of Trade, and in program guidelines going forward.
Funding management processes will continue to be streamlined:
• Turnaround times shortened wherever possible
• Feature film Letters of Interest now approved by the CEO
• Applications to be submitted in two stages where possible, requiring fewer initial application materials to limit the burden on applicants
• An online application system to be introduced to make it easier for applicants as well as improve the efficiency of application processing.
Programs
Sharpened program focus is reflected across the agency:
• Greater emphasis on business development through the establishment of a Business and Audience department (replacing the previous Marketing department and the State and Industry programs)
• Enterprise funding to target industry attachments, high-level screenwriting development and industry capacities through new business models and ambitious business plans
• Production funding to sharpen its focus on stories that matter: innovative risk-taking projects that identify and build talent; culturally significant, intrinsically Australian stories that resonate with local audiences; and high-end ambitious projects that reflect Australia to the world
• International festival and market support programs revised to consolidate travel and materials funding, allowing producers to better leverage success at international events as part of release strategies
• Guidelines for the International Co-production program to be revised to better facilitate international partnerships.
Savings
Overall, funds will be retained on screen as much as possible, with the following adjustments:
• a further 10 per cent reduction in staff to 100 FTE personnel (112 at 30 June 2014, down from 190 in 2008), saving approximately $1 million • a $2–3 million reduction across production investment and project development programs, with the cap on Screen Australia investment in an individual feature project lowered from $2.5 million to $2 million in order to spread funds further
• a decrease in funding for traditional prints and advertising (P&A), saving approximately $500,000
• savings of around $400,000 in Talent Escalator professional development programs, avoiding duplication with the new Enterprise: People program, and from consolidation of short film programs
• transition away from direct funding of screen resource organisations, while exploring the potential to commission them to deliver professional development activities currently managed inhouse, creating savings of approximately $1–1.6 million
• small savings across other programs.
Aaddendum: The executive director of Screen Producers Australia, Matthew Deaner, said Screen Australia had done everything possible to minimise the budget’s impact on production levels, reports the SMH. ‘‘They’ve spread those changes across both their programs and internal operations, which was critical,” he said. “And they’ve done their best to minimise the impact on production output.’’
Alex Hayes – mumbrella blog – July 24th, 2014