Arts Council of Wales grilled over spending decision

The Arts Council of Wales (ACW) has been accused of being “obsessed with the process” and “losing sight of the outcomes” by Welsh Committee Assembly Members (AMs) over its approach to spending.

The Culture, Welsh Language and Communications Committee session was prompted by a submission from Arts & Business Cyrmu (A&BC) that said ACW’s decision to “withdraw” an annual £70k in core grant funding had put the organisation at “imminent risk” of closure.

The move meant that A&BC had to change the way it operated and submit tenders to carry out similar activities.

AMs questioned the rationale behind forcing organisations with a proven track record of using grant funding efficiently to be funded in this way: “Is there not a risk of killing something valuable to the overall eco-system just to comply with best practice,” an AM asked ACW Chief Executive Nick Capaldi.

Procurement model

Capaldi accepted the comments, but argued support for A&BC had not been withdrawn. He said a two-year funding agreement with the Welsh Government had instead come to an end, and that he remained “pretty confident” A&BC would continue to operate.

“I can entirely understand why they would wish to be allocated a sum of money and no doubt they would use it well, but we do have to go through the proper process of procurement,” he added.

“We do need to be able to reassure the Welsh taxpayer that we are getting the best value for the public pound.”

Challenge

AM Lee Waters claims that ABC fills a recognised skills gap and had been able to use its core funding to generate a further £1.4m of private investment.

He described ACW’s distinction between an organisation eligible for grant funding and an organisation required to bid for funding as “arbitrary”, concluding he was “not convinced” that the procurement process had to be applied for ABC.

“I take your point that no organisation has a right to exist, and we are not deaf to special pleading – we understand that people are fighting for their organisations in austere times,” he said.

“However, it does seem in this case that they are providing a specialist skill set you don’t have. Your response to it is a rather bureaucratic obstinacy about what you regard as direct creation or not.”

Jeremy Miles, AM for Neath, asked whether there had been any internal assessment at ACW of the time, management and staff costs of moving to the procurement system.

Capaldi said there hadn’t, but he didn’t think the change would generate a cost for ACW – pointing to internal plans to reduce staff by 25% as proof of a commitment to low internal running costs.

The scrutiny took place alongside the ongoing inquiry into music education funding, at which ACW has committed to giving evidence.