DRAFT BUDGET 2015-16:

CONSULTATION ON SAVINGS DELIVERY PLANS AND EQUALITY IMPACTS

WITHIN THE DEPARTMENT OF CULTURE, ARTS AND LEISURE

9 February 2015

DEPARTMENT OF CULTURE, ARTS AND LEISURE

DRAFT BUDGET 2015/16

CONSULTATION ON SAVINGS DELIVERY PLANS AND EQUALITY IMPACTS

CONTENTS

1.Introduction

2.Consultation arrangements

3.Contact details

4.Final budget outcome for 2015/16

5.Summary of savings delivery plans

6.Summary of equality impacts

Appendix 1 – Summary of responses to first consultation exercise

Appendix 2 – Individual savings delivery plans

Appendix 3 – High level impact assessment on spending proposals

1.INTRODUCTION

Following publication of the Executive’s draft budget for 2015/16, the Department arranged an initial consultation exercise in November 2014. There were a great many responses to this, a large proportion of which reflected support for Libraries and for the Arts sector, including NI Screen. A summary of these can be found at Appendix 1.

Since then a final budget for 2015/16 has been agreed by the Executive. The purpose of this document is to:

set out the Department’s final budget allocation:

present savings delivery plans which show how reductions to budgets will be achieved:

present assessments of the equality implications of these plans and

invite comments on these plans and assessments.

The consultation period will extend for four weeks from 9February, 2015, ending on 9 March, 2015. This shortened period reflects the fact that an initial consultation exercise, lasting six weeks, has already taken place.

This document is available in a range of formats on request. Please contact us with your requirements on 028 90 515081 or by writing to:

Finance Branch

Department of Culture, Arts and Leisure

Causeway Exchange

1-7 Bedford St.

BELFAST

BT2 7EG

2.CONSULTATION ARRANGEMENTS

The Department will be writing to key stakeholders and in particular, it will consult with the Assembly Committee for Culture, Arts and Leisure.

It is also publishing this document on its website: While the Department welcomes any comments: it is particularly interested in observations on the savings delivery plans themselves and their equality impacts.

3.CONTACT DETAILS

For the sake of efficiency, representations should be made directly to the Department. Respondents are strongly encouraged to use the link below:

Using this survey tool will allow us to collect and summarise comments in a timely and efficient manner.

You may also send written responses to the contact address given aboveor by

4.FINAL BUDGET OUTCOME FOR 2015/16

The Executive’s final Budget sets out allocations for departments for both current expenditure (for example, pay, operating costs and grants) and for capital investment (for example, in buildings and facilities).

The tables below compare the draft and final allocations for DCAL (excluding non cash costs).

Budget area / Draft allocation / Final allocation
£m / £m
Current expenditure / 89.9 / 91.7
Capital investment / 54.1 / 8.1

Current budget (excluding non cash items)

The draft budget for 2015/16 reflected an overall 10% reduction compared to the Department’s budget for 2014/15. Following the adjustments made in agreeing the final budget, the Department’s position has improved and the required savings are now (overall) 8.2% of the 2014/15 budget. However, this has not affected the position of all but one of the Department’s Arm’s Length Bodies for the reasons outlined below.

The movement between the current budget for 2014/15 and for 2015/16 is explained as follows:

£k
14/15 Budget / 99,947
Less savings of 10% / (10,003)
Less transfer of functions / (246)
Add additional allocations / 2,000
15/16 Budget / 91,698

After removing budget of £246k which is transferring to Councils along with a number of related functions (concerning 20 Water recreational sites and Armagh County Museum), the allocation for current budget has increased by £2m. The Executive provided this to address inescapable pressures within the Department and in NI Screen which could not be addressed within the draft budget allocation. This means that elsewhere in the DCAL and its ALBs budgets will still be cut by either 7.5% (Libraries) or 11.2% (all other areas) as indicated in the original consultation document. Overall, the Department’s current budget for 2015/16 has reduced by £8,249k compared to the opening budget for 2014/15.

The revised budget allocations across the Department and its ALBs are detailed in the table below.

Area / Draft allocation / Final allocation
£k / £k
Department / 18,574 / 19,647 *
Libraries NI / 29,434 / 29,434
National Museums / 11,333 / 11,140 **
Arts Council / 10,927 / 10,927
Sports Council / 8,231 / 8,231
N/S Language Body / 5,127 / 5,127
Waterways Ireland / 3,726 / 3,726
Armagh Observatory and Planetarium / 1,356 / 1,356
NI Screen / 1,004 / 1,870 ***
NI Museums Council / 240 / 240
89,952 / 91,706

‘*Thisrepresents £1,134k of the Executive’s additional allocation to cover PRONI running costs and preparatory work on the Sub Regional Stadium. This is offset by the £53k reduction following the transfer of 20 water recreational sites to local government.

‘** The £193k budget reductionfollows the transfer of Armagh County Museum to local government.

‘*** £866k budget increase represents the Executive’s additional allocation to cover NI Screen pressures.

Capital budget

The Department’s allocation in capital budget was reduced by £46m between draft and final budget. This adjustment followed the outcome of the judicial review on planning permission for the construction work at Casement Park. However, the adjustment has left the Department with no budget for the Stadium’s programme in 15/16 and £8.1m to cover a number of contractual commitments and high priority projects. The Finance Minister has indicated that, in view of the circumstances in which the Regional Stadia funding was surrendered, the Executive will consider any specific bid from DCAL favourably, subject to available funding. The Department continues to engage with the Department of Finance and Personnel on the issue.

5. SUMMARY OF SAVINGS DELIVERY PLANS

Savings measures across the DCAL family

The tables below show the savings allocated across the Department and its ALBs and a summary of the impacts on front line service delivery and corresponding saving delivery plans.

Detailed savings delivery plans, outlining savings at programme level, the associated risks, timescales and potential impacts in relation to Equality, Good Relations and Sustainable Development, are contained in Appendix 2.

Table 1 – front line impacts and saving delivery plans

Area / £k / Impact on front line delivery / Savings plans
Department / 2,335 /
  • Grant to a variety of sectors will be reduced.
  • Fewer fisheries events and outreach programmes, potential deterioration to the public angling estate.
/
  • Paybill reductions: £1,368k
  • Reductions in grant and programmes: £867k
  • Reduction in overheads: £100k

Libraries NI / 2,387 /
  • Reduction in book stock spend to £1.50 per head of population, also affecting e- and audio book formats
  • Opening hours reducing by between 5% and 10%
/
  • Book stock reduction: £361k
  • Paybill reductions: £1,581k
  • Reduction in maintenance: £195k
  • Reduction in overhead: £250k

National Museums / 1,425 /
  • Seasonal closures of areas in Ulster Folk and Transport Museum and Ulster American Folk Park; gallery closures at Ulster Museums
  • Reduced opening times
  • Potential curatorial losses
  • Reduced number of events and exhibitions
/
  • Paybill reductions: £1,052k
  • Reductions in programmes: £292k
  • Reductions in operating costs: £81k

Arts Council / 1,374 /
  • Reduced provisions on both development of the arts and on arts provision to the public
/
  • Reduction in grant programmes: £1,130k
  • Paybill reductions: £120k and reduction in administrative costs: £124k

Sports Council / 1,035 /
  • Savings will made across all grant programmes
  • Larger cuts in performance sport and coaching
  • Activ8 programme not funded
/
  • Reduction in grant programmes: £785k
  • Paybill reductions: £250k

N/S Language Body (note) / 644 /
  • Outside the scope of this exercise
/
  • Outside scope

Waterways Ireland (note) / 468 /
  • Outside the scope of this exercise
/
  • Outside scope

Armagh Observatory and Planetarium / 171 /
  • Reduced research
  • Higher entrance charges
  • Reduced number of shows and events
/
  • Reduction in paybill and overhead costs

NI Screen / 126 /
  • Work in digital innovation and development will be reduced: Fablab outreach into schools will fall and digital apprenticeships will not be taken forward
/
  • Reduction in administrative costs and programmes

NI Museums Council / 30 /
  • Limited impact
/
  • Reduction in overheads

Total / 9,995

Note

The budgets for the North/South Bodies are agreed by the North South Ministerial Council and are dealt with under different arrangements. They are therefore outside the scope of this exercise.

EQUALITY ASSESSMENT

Summary of the Equality and Good Relations implications of DCAL’s Final Budget plans 2015/16.

High Level Impact Assessments to ascertain the impact of DCAL’s spending proposals have been conducted in accordance with Section 75 (1) and (2) of the Northern Ireland Act 1998. These are attached in Appendix 3. We consider that in relation to Section 75 groups these assessments have indicated a largely neutral impact. The table below provides an initial assessment of the impact of the Budget proposals in relation to the services provided by the Department and its ALBs.

Section 75 group / Current spending
plans / Savings plans
Between men and
women generally / Neutral impact / Minor negative impact
Persons of different
age / Neutral impact / Minor negative impact
Persons with or
without disability / Neutral impact / Minor negative impact
Persons of different
religious belief / Neutral impact / Neutral impact
Persons with or
without dependents / Neutral impact / Minor negative impact
Persons of different
political opinion / Neutral impact / Neutral impact
Persons of different
marital status / Neutral impact / Neutral impact
Persons of different
racial group / Neutral impact / Minor negative impact
Persons of different
sexual orientation / Neutral impact / Neutral impact

In deciding on savings, the Department’s expenditure has been thoroughly reviewed in order to determine how the required level of savings could be delivered whilst safeguarding Section 75 groups and frontline services as far as possible. The relative impact of each savings measure option has been assessed by High Level Impact Assessments and summarised in the Savings Delivery Plans in Appendix 2.

The measures identified follow very difficult decisions that seek to optimise the use of resources through scaling back programmes and taking forward cost reduction measures. This will also require DCAL to reduce the number of staff working across the Department.

The Minister is committed to a balanced and fair approach to delivering the savings ensuring that all possible steps are taken to protect the most vulnerable in our society.

Appendix 1 – Summary of responses to first consultation exercise

Appendix 2 – Individual savings delivery plans

Appendix 3 – High level impact assessment on spending proposals

Appendix 1

DCAL 2015/16 budget consultation

Summary of responses

December 2014

Michael O’Dowd

DCAL Head of Finance

Background

The consultation for the DCAL 2015/16 budget was launched in November 2014. Respondents to the consultation were able to respond by email, post or through an online survey. This report provides a breakdown of the response to the consultation.

Respondents to the budget consultation process

There were 9,853 responses received. This is broken down as follows:

  • 9,771 responses from individuals
  • 82 responses from organisation

Included in the responses from organisations is one from the Arts Council which states that it has received 13,443 independent petitions of public support for “no more cuts to the arts”.

Responses from individuals

Respondents were asked what area in DCAL they were interested in. Responses were received by email, post or through an online survey. Responses received by email and post were interested in only one area, while most responses from the online survey were interested in more than one area (Table 1).

  • DCAL received 7,122 responses by post, 704 individuals were interested in the Arts sector and 6,418 individuals interested in Libraries; and
  • DCAL received 2,310 responses by email from individuals interested in the Arts sector.

Table 1: Areas of interest highlighted in on-line survey

Area / Number of responses
Architecture and the built environment / 73
Arts / 173
Fisheries / 30
Irish language / 54
Libraries / 213
Museums / 135
Other languages / 61
PRONI / 41
Sport / 111
Ulster-Scots / 20
Waterways / 36
Other / 49

Table 2 provides a summary of the issues raised and key themes for each area of activity.

Table 2: Summary of responses by individuals

Area / Summary of issues raised and key themes
General comments / There were a number of comments that stated that the cuts are too big. However, there is some acceptance that there is little that can be done about the proposed cuts.
There is concern about the impact of the cuts on education, communities and frontline services.
Restructuring in the public service would help release money to front line services. There were some other suggestions on how income could be generated in a number of areas.
There is concern that some of the ALBs are not able to make objective decisions on what should be cut and prioritised in the budget.
Arts / There is already a small budget and respondents to the consultation felt that the cuts will have a greater impact for the arts. Arts funding should be enhanced, not cut. There is concern that the sector would not recover from the cuts. Respondents highlighted that cuts to the arts will affect other sectors such as the economy, employment opportunities, tourism, dependence on Health services and education.
A large number of comments related to Northern Ireland Screen indicating that the cuts would have a major detrimental impact on programmes aimed at young people and in supporting the screen industry. Some specific comments are as follows:
  • The cuts to NI Screen will impact on education, in particular on creativity and digital skills.
  • Cuts to Cinemagic will impact on job creation and education.
  • The cuts to the creative learning centres/ AMMA centres will impact on teachers and their training in ICT as well as developing creativity in children.
  • Cuts to the QFT and film festivals will have a negative effect on the economy, education and tourism.
  • Concern was raised about the impact of the cuts on the Ulster Orchestra. Another comment indicated that the Ulster Orchestra should no longer be funded.
  • One respondent said there is too much spend on ‘elitist’ arts and arts in Belfast.
  • The impact of the arts on building a shared space and how cutting the arts will impact on communities.

Libraries / Many of the comments around libraries underlined the importance that libraries play in peoples’ lives. In addition to core services, comments highlighted the value of services such as free courses, arts displays, access to the internet and various children’s activities such as “Rhythm and Rhyme”. Comments also highlighted the importance of library services for older people, jobseekers, students and rural communities. Comments around libraries show that people feel the cuts will impact on the service delivered by libraries.
Opening hours and libraries closures is a key area for library users from the consultation. Respondents felt that opening hours need to include evenings and weekends. There is already concern about the cuts in opening hours in libraries. There is also concern that cuts to smaller libraries are harder to absorb than larger libraries. However, some responses indicate that there is a preference to reduce opening hours than to close libraries altogether.
Some comments suggest that there is a need to look to other shared resources such as community centres and schools.
There is concern about the impact of the cuts on book stock by some respondents.
Some responses indicate that people were pleased that libraries received some measure of protection in the allocation of budget cuts within the Department.
Sport / There were a number of comments in relation to sport which stated that sport is lacking investment. Sport funding should be enhanced, not cut. Respondents felt that the cuts will impact on coaching, education and health and there will be a greater dependency on volunteers to deliver programmes. There were concerns that the cuts will impact on frontline services and on the reduction in grants.
One respondent felt there is a need for clearer links with DSD and DHSSPS who also run sports programmes.
There were some specific comments to some areas of sports:
  • International sport;
  • Youth sport.

Museums / It was felt that the cuts in the museums sector would have negative impact on peoples’ lives and diminish the offerings for tourists.
Waterways / There was one response who stated that other sectors should be cut and funding to Waterways Ireland should be increased.
Equality comments / In total, there were 193 comments to this section of the consultations. Most of the comments expressed a view that the cuts will have a negative impact on all of the Section 75 groups. There was also a view that the cuts will impact other disadvantaged groups such as people living in poverty.

Responses from organisations

Organisations were asked what area in DCAL they were interested in. Responses were received by email, post or through an online survey. Most responses from the online survey were interested in more than one area (Table 3).

DCAL received 46 responses by email and post from organisations interested in the various sectors within DCAL.

Table 3: Areas of interest highlighted in the on-line survey

Area / Number of responses
Architecture and the built environment / 6
Arts / 20
Fisheries / 3
Irish language / 7
Libraries / 10
Museums / 7
Other languages / 3
PRONI / 1
Sport / 16
Ulster-Scots / -
Waterways / 3
Other / -

Table 4 provides a summary of the responses broken down by the main areas in DCAL.

Table 4: Summary of responses by organisations

Area / Summary of issues raised and key themes
General comments / One organisation agreed with the budget cuts.
Most responses stated that the cuts will have a direct impact in terms of future investment and delivery of core service provision. Any reduction in existing funding is likely to impact upon future capital/physical investment schemes, the level of support provided to key revenue programmes and initiatives. Some organisations welcomed the opportunity to work in partnership with the NI Executive, DCAL and its ALBS.
One organisation suggested cuts to Governmental benefits/expense packages as they are a public service.
One organisation criticised DCAL for not providing the basic information within the consultation process and stated that it undermined the consultation process.