Change to distribution of Lotteries funding

23/8/94

The arts and sporting communities are set to benefit through a change to the distribution of Lotteries funding announced today by Racing and Gaming Minister Max Evans.

Mr Evans said the amendment had been made necessary by the success of Lotteries over the past year, which had highlighted an anomaly in the formula for arts and sports funding.

The Minister said it was found a section of the Lotteries Commission Act related to arts and sports funding did not allow arts and sports to benefit as much as other areas supported by Lotteries when Lotteries sales were high and inflation was low.

"Arts and sports are guaranteed whichever is the lower of either two per cent of Lotteries receipts each, or the amount received the previous year adjusted for inflation," Mr Evans said.

"Until 1993-94 the formula worked well, because annual sales of Lotteries products did not increase at a higher rate than inflation, and arts and sports consequently received the standard two per cent of total sales receipts.

"However, with the increase in Lotteries sales now outstripping inflation this section of the Act works to the disadvantage of arts and sports, whose share of the Lotteries cake would fall to less than two per cent each.

"This was clearly not fair to arts and sports, and the Government has moved to end the anomaly."

The removal of Section 22(3)(b) from the Lotteries Commission Act to maintain arts and sports funding at two per cent of Lotteries receipts will in effect provide additional funding of between $200,000 and $400,000 a year, depending on the level of Lotteries sales and inflation.

Lotteries Commission funding is used by the Ministry of Sport and Recreation for sport development purposes.  Support is provided to some 65 State sports associations based on priorities identified in their development plans.

Financial support is provided to another 40 small State sport associations in accordance with other criteria, and is also the primary source of funding for the Western Australian Institute of Sport, the Women's Sport Foundation, the Coaching Foundation, and the Aboriginal Development Foundation for Sport and Recreation.

The Department for the Arts uses the funding to support the State's arts and cultural industry through grants to 26 major arts organisations, individual artists, and community groups.

In 1993-94 Lotteries funding comprised 57 per cent of a total of $10.6 million granted for this purpose.  The support directly affects the number and scope of cultural events throughout the State, and the resulting level of public involvement in the arts.

Media contact:  Tony Barker-May 366 0300