Funding of the arts and heritage - Culture, Media and Sport Committee Contents


Examination of Witnesses (Questions 267-297)

Q267 Chair: Good morning. Can I welcome for the second part of our session this morning Roy Clare, the Chief Executive of Museums, Libraries and Archives Council and Dr Michael Dixon, who is Director of the National History Museum—but you are appearing as current Chairman of the National Museum Directors' Conference?

  Dr Dixon: That's correct.

  Chair: Adrian, if you want to begin.

Q268  Mr Sanders: Thank you. We all know that museums and galleries have been doing quite well over the last few years. They have enjoyed a boom in visitor numbers. Have they been able to capitalise financially on their success?

  Dr Dixon: I believe we have. If you look at the rate of increase of self-generated income by just about all the national museums, over the period, let us say, since the reintroduction of free admission in December 2001, I think that that growth rate considerably outstrips that of the increase in Government funding. In fact it outstrips it probably in most museums by a tune of three or even four times.

  I think it's important to understand that in the free admission era the relationship between the museum and its visitors is quite different. In the charging era visitors would pay for admission and stay in the museum for quite an extended period. Typically—and I will cite the Natural History Museum—they would stay about four and a half hours on average. Obviously a four and a half hour stay means the likelihood of using catering facilities on-site is pretty much 100%.  In the free admission era, the visit is quite different. Typically now our visits average in the region of two and three-quarter hours, so it is perfectly possible for people to not use catering facilities on-site. I think you have to understand the dynamic is quite different. But similarly people, of course, are not a captive audience. They can leave the museum and return, having used catering facilities elsewhere.

  I would make two points. First of all, the dynamic is very different in the free admission era, and secondarily I think museums have worked very hard over the last few years to demonstrably help themselves. I think the statistics on self-generated income will certainly support that.

  Mr Clare: Chairman, I think those remarks hold good for museums outside London that are not nationals where the museums are of scale. It's not true for smaller local authority museums where of course the greater preponderance of the funding is not from national Government but from local government, and the picture is very patchy across the country. I can elaborate, but it's not a holistic picture.

Q269  Mr Sanders: It's a big issue in my part of the world, the far southwest, where 3% of the country's population have to pay for 30% of the nation's coastal asset in the highest water charges in the country. Why should people in my part of the world subsidise free entry to museums that are in London?

  Dr Dixon: Free admission is of course open to everyone. In fact, if you look at the visiting statistics of individual museums you will see that everyone does benefit—predominantly, of course, the major visitors within a certain drive time of the major centres, but these are national assets; the national museums hold national collections for public good. We keep them there, retaining excellence in those institutions, and to have those collections available for study. The statutory obligations of nationals are to look after those national collections and to make them available for study, which means having a great deal of expertise around those collections as well as all the public services that we provide.

  Mr Clare: Chairman, not only the museums in the southwest but the museums across the country do benefit from the sharing of the scholarship, the loaning of items from national collections, the support from Renaissance in the Regions, which has enabled display of those collections, sometimes in museums that are not themselves fully equipped to display at national standard. There has been a supportive approach to this and quite a number of the museums in the southwest have benefited in those ways, in addition to the audience points that Dr Dixon is referring to.

  Dr Dixon: There is an economic factor here too, in that it has been calculated by Arts & Business that national museums[1] contribute about £1 billion net to the national economy.[2] There is an economic benefit to the public subsidy that goes into those museums.

Mr Sanders: Is that from people visiting them from overseas?

  Dr Dixon: It's a wider economic benefit. It's not purely from people visiting the museum.

  

Q270  Dr Coffey: Especially coming from the private sector, there's an element of "you pay for what you value", so it is interesting to hear your experience of how the average length of visits is shortened, but Jeremy Hunt announced last week—or, it was announced last week—that we would keep free admission. One of the charges that has been laid is that with this cut in funding museums will close their doors more often, whereas Phil Redmond is taking the other approach in Liverpool, saying about how we use volunteers more. What is the right balance, in your view?

  Dr Dixon: I think the challenge for national museums is not so much keeping the doors open but what we can provide by way of public programmes, absorbing a 15% real terms cut over the next four years. The reality is that the expensive services to deliver are those public-facing services. They are the special exhibitions, the educational programmes. Opening the doors in themselves is not necessarily the most expensive part of running our operations. In fact, you probably have to close the doors for significant periods of time to make really significant savings in that respect.

Q271  Dr Coffey: But say something like the Canaletto is £12, or whatever the Royal Academy manages to charge, so there is that element of pricing for what people perceive to be quality; how do you balance that in your equations?

  Dr Dixon: Those special exhibitions are part of the income-generating activities that national museums now operate. The proportion of space in individual museums and galleries that is charged for of course varies enormously, as do the audiences for national museums. For example, in my own museum, the amount of gallery space that's paid for, in admission charges, is quite small. The economic model varies quite widely from institution to institution. Although I am speaking in general terms here on behalf of national museums, I think you have to accept that although there are a lot of similarities between those institutions so designated, there are quite a lot of differences too in terms of the economics and how they operate.

  Mr Clare: I think there's a bigger risk though in the funding, if I may, Chairman, which is that the partnerships that I referred to in an earlier answer will be the first thing that many nationals will find difficult to do; not through any disinclination but because they cost money. For example, just outside your constituency in Colchester there was a very good relationship with the British Museum and with the Fitzwilliam around an exhibition a couple of years ago, of terracotta mini burial figures, it was an outstanding show, and it was absolutely right to do it there because that museum partners with one in Ipswich and you have a very good strong local regional flavour to it, and it was important to recognise the role of the national museum in making that happen. I am concerned that, in the new era of funding austerity, that kind of activity will be at risk. I do know that there is good intent on every side to continue it but that's the area that would certainly come under some jeopardy.

Q272  Chair: The national museums basically have received the news now, and it may not be as bad as it could have been, but you now have to adjust to the new environment. Presumably for the museums outside the nationals you are going to get a second hit once the local authorities come to decide how much they are able to continue to support local museums—

  Mr Clare: I think that is right.

  Chair: Have you any inkling about what is going to happen—

  Mr Clare: It's not a uniform picture. A number of local authorities with whom we work were clearly ready for reductions. Some of them were ready for much greater reductions than have become apparent but all of them will be trimming what they can invest. In the new Renaissance programme, which Ministers have agreed to in principle—although a formal announcement is not yet made—we are looking at Renaissance money being contingent on there being evidence of ambition and funding locally, from local government and from local independent trusts and other sources.  That contract is really important, because it's an incentive to maintain local funding at an adequate level. Renaissance national funding is there, quite literally, to add value, to create development opportunities, to improve what museums can do, not necessarily to simply manage core business. There is a big risk, I think, when you note the figures—the figures I offered in my written submission for 2008-09 show that local government investment in all forms of culture and the arts is three times that of the national scale, which is quite an impressive figure. There is a very great importance attached to what local government invests and we do know some of that is going to be at risk.

Q273  Chair: Do you anticipate that will lead to closures?

  Mr Clare: It may do. Apart from one or two very notable examples that are largely borne of different reasons—and there was an adjournment debate on the Wedgwood museum, for example, last week—we don't have evidence of intent to close. It is quite likely that mergers and acquisitions are going to be a key. We are aware of a number of local authorities quite spontaneously and properly working with each other to discover how they can share overhead and reduce total cost. I suspect museum managers can be shared and indeed, Cultural Ipswich got there first with their groundbreaking idea. I know that Norwich are now talking to them. I think that's all very healthy. There are other examples across the country. So I am not yet sure we're in closures territory, but reductions of service, certainly, but we'd like to see that offset by greater attention to managing overhead. That is certainly what the new Renaissance programme aims to do, to incentivise that process.

Q274  Chair: Can I ask you about the MLA itself? Did it come as a surprise to you when you received the call to be told that the MLA was being wound up?

  Mr Clare: The formal call arrived in July. There were inklings a lot earlier than that. MLA, as everybody knows, did not have the benefit of a Royal Charter to support it. It doesn't need an Act of Parliament to close it, and it has been long thought by many people that bringing together the functions that the MLA manages with those of the Arts Council could improve the way local authorities, for example, are served and, therefore, how their populations are served. So there is nothing intrinsically difficult about the concept but the announcement in July, of course, then had to await further work including the Spending Review, so it wasn't so much the phone call as the three-month interval that has caused us the most difficulty.

Q275  Chair: When we had Tim Bevan of the UK Film Council, he firstly told us that he got a call at midnight from the Minister to be told that his organisation was disappearing, and it's fair to say he wasn't very happy about that. You sound as if you understand the reasons much better than Tim Bevan appears to understand why the Film Council has demised.

  Mr Clare: I cannot comment on Tim Bevan, but I do know that we have been closely in touch with all parties as we were authorised to do ahead of the election. We knew where everybody felt the pressure points were going to be, and we are also, of course, keen for everybody to realise that the MLA had reworked itself substantially over two and a half years reducing our overhead cost at just over 2.8%. We thought that was a really impressive achievement. It didn't stand us in good enough stead unfortunately when the measurement came. But I do think the model of what we've done is fully transferable, including reducing the costs of operations of NDPBs operating in the regions. We did away with office space, for example, and that's on the record. We've done a great deal to demonstrate that mobile working is a successful way to support local government at minimum cost. So we would like to see the lessons of the MLA taken into the Arts Council and other bodies that are taking the work forward.  I think the area for us of concern is not the closure of the MLA but the service to the sector and the public, and I know that is a separate question but it is where our focus has been throughout.

Q276  Chair: Do you think it is inevitable that the functions of MLA will go into the Arts Council?

Mr Clare: I think most of the functions logically could, including noticeably the flagship Renaissance programme, and quite a lot of the things that we do that are specific to museum support, including the very successful accreditation programme which now has more than 1,800 museums in it; the similar programmes we are offering both for archives and for libraries; the designation programme, which applies to all three in our sector of museums, libraries and archives—the designated collections are the outstanding collections outside the national museums' collections. We think all those things are important and coherent. I think there is a question over whether the Arts Council, with its new funding regime, has the capacity to absorb the additional work involved and also whether, in its current form, the Arts Council is sufficiently reformed to adapt to the new ways of working with lower overhead costs. So today, we don't know whether that's going to be the place that we go, but a lot of work is happening, both behind closed doors and more openly, to generate the idea that the Arts Council is the logical place for MLA's functions to go.

  

Q277  Chair: Do you think some of the MLA staff will go into the Arts Council?

Mr Clare: The logical thing would be for a number of them doing specific jobs with specific expertise to go with the functions and that's certainly our starting point.

Q278  Chair: There are functions that would be quite difficult to put into the Arts Council, aren't there? Things like acquisition in lieu; how would that work?

Mr Clare: Acceptance in lieu and the Government indemnity scheme and export licensing operate within a single unit that is led as a unit within the MLA. It could operate as a unit within almost any other body you care to name so long as there were no explicit conflicts of interest. We certainly would suggest that the entire unit, which we've moved to Birmingham at cost to the public purse, could transfer as an entity into Arts Council. I think that work is still being discussed. There is no reason, in principle, why it shouldn't, and it would save further costs and impact in the West Midlands in moving it back out again.

Q279  Chair: So you are reasonably confident that if the Arts Council takes on perhaps additional resource and expertise, the service that MLA has been providing until now can continue without any reduction in the quality to your clients, as it were?

Mr Clare: The MLA board's objective, clearly headed by Sir Andrew Motion, is that that should be the case. You asked specifically, am I confident? No, I am not confident today because that work is not yet complete. I do have empathy with Arts Council, who have a very significant cut of their own to manage, including a substantial cut to their overhead. It is no surprise to the Arts Council that my position is they could follow our lead on some of their cost reduction in the regions—I do think they could—but I have real sympathy for the fact that they have just taken this hit and now they're being invited to take on new guests. Inevitably, in a marriage, they want to know what size the dowry is. So, no, not confident but certainly getting a hearing and working very closely with DCMS and the Arts Council to bring about a successful conclusion.

  I think we are in a high-risk position because there's a misunderstanding about the weight of work we've been doing, which has been widely acknowledged as having been successful in its form, and specific to museums, libraries and archives, which are not like theatres. A great museum is also a theatre and a place of dance and music but it is not the same as saying that a museum behaves in all respects like a theatre. So there is specific tailored expertise and knowledge that we think needs to live through this in a very recognisable way and that suggests an adapting the Arts Council if that's where all this is going.

Q280  Chair: So to make you confident, you are looking for more assurance that the Arts Council is going to take on people who understand museums rather than theatres and dance halls?

Mr Clare: Yes, and only this week I have written to the Permanent Secretary, copied to Ed Vaizey, I emailed yesterday, and we had a debate with Jeremy Hunt. I am getting a completely good hearing at the right levels for the very important messages we are transmitting. I think it is a practical issue of timing and scale of reduction that the Arts Council has to manage. If the willingness is there in the Arts Council to do it, I've no doubt we can make a good fist of it, and certainly at chief executive level, Alan Davey and I are sure that we could do it.

Q281  Chair: You don't see any alternative to the Arts Council?

Mr Clare: I don't see a plausible alternative. Lots of others have suggested variations and there have been some circling to see whether they could cherry­pick some of the functions. I don't think that is a good approach because the clear advice we're giving is that a coherent package is what will work. For example, a coherent package will work for local government, which is a big consumer of what we offer and what local government is slightly fed up with is more than one body coming with slightly different messaging. So we are very keen to support local government in getting, as it were, a one­stop shop in terms of advice, support, the evidence for outcomes and also, of course, best practice.

Q282  Chair: NMDC don't see any additional role that you might take on?

Dr Dixon: The important thing is that the services that national museums rely on at the moment are still available and of the same quality. I would hope that we would be consulted in the proposals as they go forward. The acceptance in lieu scheme, the portable antiquity scheme, the Government indemnity scheme, are all things that we rely on to varying extents at varying times, and we would wish to see those services continue at their current standard. I suppose there is a more generic point that some NMDC members would exhibit at this point, and that is, is there a danger that administration of certain aspects of museums through the Arts Council just perpetuates the slight misunderstanding that museums are synonymous with the arts? Museums, of course, cover a very broad spectrum of interests, so that would be a concern perhaps to some members at this time; can the Arts Council fully represent the breadth of museums?

Q283  Chair: But generally you share Roy Clare's view that if the Arts Council takes on the people who do have that knowledge and expertise, you're reasonably confident that it can continue?

Dr Dixon: Yes, I do.

  

Q284  Alan Keen: To move on to collections now, Michael has already told us that closing the doors for a relatively short while is very, very marginal in cost savings. Obviously collections must be a large part, in addition to education. How are the cuts going to be managed in the best way to protect collections? You can't just shut them in a room and leave them there and expect them to be in the same condition when you come back.

Dr Dixon: You're absolutely right. The collections we have in this country are fantastic national collections. If they are to have value, then they have to be used; they have to be accessible for scholarly study as well as for exhibiting in public. I think that is the challenge we face in the current funding environment. Over the period since the reintroduction of free admission, museum funding has grown only roughly at the rate of inflation as opposed to Government funding overall, which is almost twice that rate. So we've not enjoyed a boom in the last few years and indeed, therefore, a 15% real terms cut is quite painful.

  I'll speak for my own museum; I can't speak for the boards of trustees or indeed the directors of all museums, but our board of trustees will look very carefully at what essential services relate to our collections and what essential expertise we have to retain around those collections to make them really valuable as internationally important research collections. To give you a measure of that, the Natural History Museum has a scientific staff of about 350 but we receive visits from over 8,000 scientists from other institutions that use those collections, so they are an incredibly important resource. But they are not an important resource if there is no intelligent access to the collection, so you need curatorial staff and research expertise around those collections to make them really accessible and valuable. In the case of Natural History collections, of course, they are relevant to some of the big questions of the day. What is the impact of climate change? What is the impact of biodiversity loss and things of that sort? Individually, museums will have to ask themselves some very important questions. What compromises can we make in the short term in terms of collection storage and security and what compromises can we make in terms of the expertise within the organisation that relates to those collections? Because of the statutory obligations of our boards, I think that's the first consideration before we look at other measures of how we can effect expenditure reductions.

Mr Clare: I think there's another aspect of this. I agree with what Dr Dixon said but there's another aspect which is under the broad heading "Collection Development", which is, what comes in needs to be accompanied by something going out. It's a very unpopular notion among a great many curator specialists because collections are held to be there for ever. The reality is that there are quality differences across all collections whether national or regional. There are also overlaps in collections between museums, both at national and regional level. There are also some collections that have grown up over time that perhaps are no longer reflected in museums' current approach to their thinking and themes. All of these are completely legitimate but they do need a wholehearted and very focused approach to the management of them.

  A couple of years ago—and the NMDC was among those who helped the process— the Museums Association, which sets the ethical standard for this rewrote the ethical code to enable this kind of process to be done effectively; coming to the point that you can dispose of and certainly disperse collections in different ways. This remains controversial and difficult to do but there are now some examples where museums and galleries have successfully liberated items from collections. There are very strict procedural guidelines for how you do it, and it has to be for the benefit of the collections. It has to be a last resort. In one sense, it is about money, but, short of money, I referred earlier to mergers and acquisitions, and if collections are going to have to be brought together there will have to be a process of looking over each of them as they come together so that the high ground, the really important elements of the collection, are maintained. It is simple to say, it's not simple to do, but otherwise we do have an unsustainable challenge over the next 50 years if you take a long view. We have a lot of stuff that is never seen by the public, ever. We have a lot of stuff that the public wouldn't want to see. Some of it is totally legitimate as research collections there for people to dig deeper. Some of it is of questionable value at any level. So I think this is a big area where there has been, over many years, discussion about a proper strategy. There is going to have to be one, at a point when custodial costs are not going to grow less as a proportion as the overall fixed costs are growing higher.

Q285  Alan Keen: What would be the least damaging approach? We are saying, presumably, that we have five or six years before funding can start increasing again, and we have talked about collections being used for education, but what about the education and the future of the curators themselves? Curators get older and move out. In a period of five or six years, how would you cope with not having the money to bring new people in and train them?

Dr Dixon: Absolutely. That expertise, curatorial expertise, knowledge of the collections is, of course, incredibly important and we don't want to lose that expertise, for the reasons I explained earlier; it makes the collections less useful. It is a challenge, particularly as that expertise takes often decades to build up, and that's the sensitivity at the moment, that although one would like to believe that the current funding situation is a five- to six-year problem, and we can then start to rebuild some of our expertise. During that five- to six-year period, if we lose that curatorial expertise it will take decades to get it back. Arguably that might mean that some public-facing services, where the expertise can be built up more quickly, are the sort of things that will be cut in the short term. I think that's regrettable, because one wants to see a good balance between what we do for the collections for the long term and what we do for the public in the short term. I think that may be an inevitable consequence, that our public programmes will be less vibrant over the next few years as a result of the cuts.

Mr Clare: National museums have, of course, the strength of depth. They have a great many different experts and they can assemble expertise between each other. We already have an expertise deficit, though in regional museums and museums outside London. I referred earlier to the partnerships that are essential to the sustainability of those museums. This includes fundamentally the scholarship, the curatorial expertise, and so forth. We have evidence presented to us just recently by the Art Fund, who are benefiting a great many collections, of course, with their funding. A substantial number of the bids to the Art Fund for money for collections outside London, in other words from non-national museums, are turned away through inexpert submission, which is pointing squarely at the curatorial capacity outside national museums. So we are going to need to consider a new model for maintaining expertise. Some nationals are already working closely with higher education, which I think is a very powerful model, where not all expertise has to be organic within the museum. It can't be. You do need collections specialists and people who understand the collection, but you can add scholarly value through partnership with HE (Higher Education), and I suspect we need more of that.

  We also need, in the regional sense, and this is something Renaissance will do, funding for the big important museums, but also development funding for the others so that the rest can catch up with the best. That is certainly the design of Renaissance, which includes, at its heart, building up this scholarship and curatorial expertise. But it's a major risk otherwise, because it's tempting for a museum of any scale to go the Disney route. In my old museum, the National Maritime Museum, we knew we could do a show on pirates any time and you would get a queue of people at the door. It's not very good for the reputation ultimately. So you do need to have the quality of curatorial capacity, so that you don't fall into the Disney "pile them high, stack them deep" approach, which museums need to be beyond.

Chair: Or dinosaurs in your case, I imagine.

Dr Dixon: Indeed.

Q286  Alan Keen: Have you been given any real indication by the Treasury how long the cuts are going to last before they forecast they can start the work? I ask this question very seriously, because I asked the Department of Health how much it's going to cost to cease all the PCTs, and they didn't have the foggiest idea. So I can't imagine you have been given much indication. You're just guessing at it, we have to make cuts now and we don't know how long they go on for. Or have you been given some indication? It would help, wouldn't it, if you knew that you have to mothball for a certain period of time. I know it's not a science, economics.

Mr Clare: You asked specifically, has there been any assurance from the Treasury? The answer is no, there hasn't. It's interesting though, working as we do with so many local authorities across the country, that various of them have different approaches to this. Some of them, through their area, where they see their industries growing, where they see their population income levels perhaps growing under new investment, are more bullish than others. There are clearly local authorities where that is not the case. So it's not an even picture, and it's not even a north/south picture because there are places of great deprivation in the south too.

  I think that area of confidence in the future needs a political answer, coupled with what is the economic vitality? I don't think our sector should walk away and say, "Well, until the politicians and the economists have sorted it out we have nothing to do." I do think it's important that the sector owns part of its own solution, and if you look at, for example—we're talking collections—the costs that we're all putting into collections sheds across the country is horrendous, and there isn't a way, at the moment, of gripping that because each of the many organisations that own and run museums are sovereign. They either have trustee boards that have their own independent view, or they are perhaps owned by local government, or now, increasingly, they are in a trust status, which is a good approach if it's done for the right reasons, but it does give them an autonomy of decision making. So there isn't at the moment a strategic approach to this, and we've long advocated that there should be. I suspect Government may well be listening to this now because it has to be done.

Dr Dixon: National museums are long-term organisations by their very nature, so we do think very hard about long-term sustainability. I think we recognise that, yes, we are in for a difficult period. I think we have to have confidence in what we can do outside of our public funding. I said earlier that the growth rate in our own self-generated income has been at a much faster rate than government funding. One would hope that we can continue that and close something of the funding gap. We also operate of course within the philanthropic sector. There is much talk about whether philanthropy can make a contribution in that area, an increasing contribution in that area. Indeed, that is something that we are of course all progressing very actively. But, the reality is, yes, we are probably in for four difficult years at least. I think some of us believe we shouldn't be confident at the end of the four-year period that suddenly money is going to be falling out of the trees. I believe that won't be the case. Indeed, our funding allocation letter makes it very clear that the out years of the plan are subject to the economic circumstances at that time. So operating a national museum, we're in three different areas. We're in, the commercial sector and the charitable sector, as well as the public sector. We have to do as well as we can in all three areas over the next four years and beyond.

  Mr Clare: Chairman, this is an interesting area. Looking forward now at other forms of investment, after the Olympics we know the Heritage Lottery Fund (HLF) will have access to greater funds. That is a very powerful tool. Our advice right now to regional museums is start planning for that because it's a very short time off. HLF has been magnificent for museums, 60% of their funding goes into museums, and it's good that they've also recently invested both in conservation and in the training and development of staff. Most recently it was with some innovative new grants. We are very pleased to see that. Ministers have agreed in principle that Renaissance will operate more closely with HLF in the future, and I think that is to be welcomed as a step forward, because there is going to be resource there, coupled with the thought that if the recovery from recession proceeds as is currently being predicted, a number of companies that are already cash rich will be back on the list of people who might give, and so we also need a much more fluent approach to fund-raising. That again is a capacity that's good in national museums, less good the further away you go from the nationals and into the regions, so it seems to me a priority. I notice that in the Arts Council's report today on their reaction to their funding settlement, they are saying that Arts & Business will cease to receive any state funding from 2012, and will have its funding halved between now and then. I think that's probably right to incentivise, but we need to get behind what follows it and support the Arts Council in what that is, because we need some joined up approaches to philanthropy.

  

Q287  Damian Collins: I would like to go back to something that Dr Dixon mentioned earlier, and develop some of the points that we have just discussed, and that's with regards to the research capabilities at the Natural History Museum. Given that everyone is in an environment where budgets are constrained, do you think that the Natural History Museum requires its own research capability? You have over 300 scientists who are researching issues around biodiversity and climate change; is that work you need to do yourself or could you not access research done by other people?

Dr Dixon: We see our collections and the expertise we have around those collections as part of the nation's science infrastructure, and scientific collections can be used—not just our own scientific collections—to address a whole range of current issues. So I do think it's important that we retain research expertise. I think also our national museums, certainly the Natural History Museum, are pre-eminent on an international stage. It would be, in my view, a great shame if we lost that pre-eminence because we did not protect the things that make it a great institution. The research that we do does make it a great institution relative to the other great natural history museums around the world. So I think it is important that we retain that expertise. It's not locked up just within our own institution. I said earlier, we get a great deal of research use of our collections from other institutions and, indeed, we do a lot of research within the museum in partnership with other organisations, particularly in the higher education sector.

Q288  Damian Collins: Do you restrict access to your collections, to researchers, and people from the outside who want to access what you have?

Dr Dixon: No. If they have a bona fide research interest and the collections can answer those questions, then they're entitled to access.

Q289  Damian Collins: I see the role that the museum plays in supporting research that people are doing, and if people have access to everything that you have, or your own researchers don't have unique access to elements of the collection, then why can the museum not play a role as a guide to what it has and let people from outside, from Imperial College down the road or wherever, come in and access your collections and do that research for you?

Dr Dixon: The answer to that is that they do, and without that expertise about the collections, the collections would not be so accessible for those external users. We have been proactive in thinking about the cuts that were coming and have announced a series of reductions in our research expertise already, to widespread dismay among the scientific community, who regard it as absolutely important that we retain that scientific expertise to make those collections accessible. As a case in point, we announced a consultation on a reduction of our expertise in micropalaeontology, and this is an area that is of great interest to the extractive industries, and received over 1,300 contributions from the research community about how vital it was that we retained that expertise to make those collections accessible.

Q290  Damian Collins: But in terms of the remit of this inquiry, looking at funding of arts and heritage, one might be tempted to say, "Well, that's all very well but why don't they pay for that work if they think it's so important?" Why should it be coming out of budgets that are therefore—

Dr Dixon: Because it is part of the nation's science infrastructure. The fact that our funding comes via the Department of Culture, Media and Sport in its entirety is something of an historical accident. If you go back decades, then our funding would have come from a number of different sources, including funding specifically to support the scientific expertise in the organisation. It's a matter of convenience now that the grant just happens to come in a single block via DCMS.

Mr Clare: I think there's a broad point behind this which connects with my—I didn't mean to sound anti-Disney, I'm anti-Disney in museums—behind that point, in that the scholarship lends the authority. So the academic base, which is founded on research, is of critical importance, and certainly from my background, as the Director of the National Maritime Museum, we accented research to the extent that we created the new archive, which will open next year, the Sammy Ofer Wing. That was based on the appreciation of the collections as scholarly resources. It is fundamentally important to a decent museum that we know much more about the items we have. It's quite interesting that, as an example, in 2005, when we undertook research into Nelson's letters, one might have been forgiven for thinking that after 200 years there is nothing new to discover. But that research that was led by the now late Dr Colin White, turned up 1,000 letters that had either not been published, or not been published without amendment, in Victorian times, that were new and fresh. That was just one example of countless ones I could offer. So, research is important, fundamentally important, and particularly ways to connect research into regional museum collections where they don't have the luxury of the scientific scholarship, and other forms of scholarship, at their fingertips, which is why the partnership is so important.

  If I may, Chair, just mention university museums in this context because they are at potentially very great risk. Some of the best known not so, but there are more than 20 of them, and those less well known in the smaller institutions will be at risk because of the pressure of funding in higher education. Of course, there is no direct responsibility from DCMS for university museums, but they now represent a really important part of the total firmament of museums, including in this scholarship and partnership. So I think university museums merit particular attention because we're not at all comfortable that their future is assured. Clearly in the bigger universities they will cherish and look after them, but it's the smaller ones that concern me.

Q291  Damian Collins: I hear what you're saying, but I think it's a legitimate subject for debate: when resources are very limited, should our national museums—they obviously require experts who can help understand and manage the collections—be facilitating research or should they be paying for it and originating it themselves?

Dr Dixon: If you look at the funding of UK science, certainly through Research Councils UK (RCUK), there is an assumption that certain sorts of expertise are retained within our national capacity and not paid for by RCUK, so taxonomy and systematics is what the Natural History Museum is based on, and the collections of course are the tool that makes taxonomy and systematics accessible. Taxonomy and systematics are absolutely crucial for understanding the animal and plant world, and indeed all sorts of legal responsibilities fall upon a myriad of institutions within the UK about correctly identifying animal and plant products. At the moment, the way that the funding of science works, there is an assumption that the expertise is based in the Natural History Museum, and it doesn't need to be paid for elsewhere, so I think you have to look at the big picture in this instance, and not perhaps the local perspective of arts and heritage funding.

Q292  Damian Collins: But, in the big picture, is your view, if you weren't doing this work, it wouldn't be done?

Dr Dixon: I completely agree. In fact the House of Lords Select Committee on Science and Technology has looked at this issue a number of times in the last decade, and determined that we have insufficient taxonomy and systematics expertise at present, so to cut it still further would be a significant issue.

Mr Clare: Chairman, I think it is also a matter of regret that DCMS will not be funding a chief scientific adviser post in future. The post that was created was a result of some work that Dr Dixon led, which demonstrated a need of scientific advice in the Culture, Media and Sport Ministry. Not only that, but that it should be connected with the social research into the positive outcomes that are feasible through the investment that is made in culture and sport. I think it's regrettable that we're going to lose traction in both of those areas unless we can find another way to carry it out, and it's not clear what that might be yet.

Q293  Damian Collins: I think we understand where you are on that issue, so I'll move on to something else I wanted to raise, which is picking up on the remarks that were made from Alan Keen's questioning on the role of philanthropy and business support for the arts and culture. In the documents and the written evidence that your organisation supplied it says, "The American model of reliance on private funding brings a degree of compromise". I just wondered if you could expand on that. Are you concerned that the more private giving there is, the more Disneyfication there is of our museums, aside from obviously the wonderful animatronic T Rex at your museum.

Dr Dixon: I am going to remind myself what exactly we said in this respect.

Dr Coffey: Section 8.

Damian Collins: Section 8, bullet point 3.

Dr Dixon: I think the point here, which I tried to make earlier, is that we operate within three different funding environments. Clearly public sector funding of national museums is incredibly important. In fact, if you look at the role of great national institutions like that they don't work without public subsidy. That's a given and we all understand that. There is a great deal of talk at the moment about the role that philanthropy might play. In fact, I think as a sector, we've done extraordinarily well in the last decade or more in terms of leveraging Government funding in finding private money to develop big projects for the national museums. Again, I can quote the figures from my own institution a bit more readily than for some others. Our Darwin Centre, which opened in September last year, was a £78.5 million project, but we were able to deliver that with only £10.7 million of direct Government funding.

  So I think we'd be pretty good at leveraging philanthropic giving. It is clear that to expect there to be a major step change in the way that philanthropy supports great national institutions is not going to be something that happens overnight. It's going to require a great deal of development. I think it will require something by way of tax incentives over and above what we have at the moment. I think we have to recognise that perhaps if we look to the American model as an ideal, that is a very different cultural environment. The culture of charitable giving in North America is not what it is here at the moment, and I don't think we will get to that position quickly.

Q294  Damian Collins: I understand that and I think it's a perfectly legitimate debate, if you see the American model as an ideal model, about how quickly or realistically we can reach that point—a number of people have come before us and have raised those concerns—but within your written evidence there is a suggestion that it might not be desirable even if we could get there, and that there's a limit on the amount of private involvement you would want ideally in the running of a major institution.

Dr Dixon: I think typically, where organisations have developed strong philanthropic giving, it tends to be in peaks and troughs and to support one-off items, either capital developments or particular programmatic developments. So to regard it as a constant consistently rising contribution to our income, I think would be problematic. I think clearly other areas of self-generated income, our own commercial developments and work with the corporate sector, are other areas that we can look at, but I wouldn't regard philanthropy as the magic bullet, as it were.

Mr Clare: I think that's right. The mixed economy approach is important and the further again away from London the more important that gets. As an example of some innovative funding streams, Luton Cultural Trust, which embodies both the library service and the museum service, has an income stream through Luton Airport. As an independent trust it can also attract sponsorship in a way that a local authority museum can't, because people don't give to local authorities on the whole.

  Up in Norfolk, in Sheringham, there is a very small museum on the coast called the Mo, which has a business partnership with the wind farm creators just offshore. That's an extremely good way of achieving sustainability at the price of a small space to explain to the public why the wind farm is there and what it does. That's the kind of innovative approach, which in small settlements can do wonders. But the major local authority owned important museums outside London are not there yet. It's very hard to get either philanthropy or commercial sponsorship into them. But York Library Service showed that it can be done with the right kind of people because, on the whole, people give to people. They managed to get Aviva to part with some money to support their adult learning programme in York libraries, which remains the only example of commercial funding into a local authority owned service.

Q295  Damian Collins: Going back to the word that was used in written evidence, which was "compromise". With your remarks, Mr Clare, about Disneyfication, do you both believe there is a danger that with more private giving you end up with more exhibitions being put on, because that's what people want to go and see, rather than the ones that have the greatest intellectual merit?

Dr Dixon: I am not sure I answered your question completely enough on compromise. I think looking to the American model, where many of the great institutions in North America are funded by large endowments, I think that's the sense in which we were saying "compromise"—to be reliant on large endowments with a variable return on those investments due to economic circumstances is, I think, the point that we were trying to make by using the word "compromise". If you're incredibly reliant for your operating costs on income from endowments, and the investment environment changes dramatically, then you can see a great deal of your operating income wiped out. So I think the balanced model between philanthropic giving and support from the charitable community or from public funding or commercial development, is a good model for national museums that gives us some resilience to a number of different situations that are outside of our control.

Mr Clare: I would agree with that. It's a mixed economy approach. I wouldn't describe it as a compromise. I think it's an important multiple funding stream approach. If you like at Tyne and Wear museums, for example, up in the northeast, they have a number of funding streams for all their partner museums, which does support their sustainability. Clearly, they suffer the same pressures as everybody else but at least they have a fighting chance of balancing books.

Q296  Damian Collins: Two very short questions, if I may. Do you think there is scope for having more touring elements from the national collections or the national museums to regional museums, whether it be an entire exhibition that has been on display in London that could be moved in part or whole, or just elements from national collections that are stored in London, to go on display in the regions?

Mr Clare: We certainly would welcome all forms of partnership with national collections, and there are lots of examples of great shows, some of which started outside London and then came to London. The George Romney show that opened in the Walker in Liverpool, for example, went after that to the National Gallery—a good example of how something can be triggered. It got rave reviews at the Walker too. The National Portrait Gallery is a wonderful gallery but it has quite a small special exhibition space, so in the Walker the Romneys really could breathe. It's a good example of that partnership, and I referred earlier to the one that took place in Colchester. There are many of these, but they are not cheap to do. Because of the fixed core costs of national museums, when they are under funding pressure it's one of those areas of discretion that trustees inevitably look at quizzically. But they can be sponsored, and it's important that we have an accent on collaboration, which enables great works to be seen outside London as, for example, some Stubbs were loaned from the National Gallery to Leeds 18 months ago—fantastic show, which attracted a local Stubbs owner to loan his work for the same show. That does build capacity, but cost is one of the issues.

Dr Dixon: I completely agree. It happens a lot now, it happens through exhibitions derived from the nationals going on tour. It works in a myriad of partnerships between national museums and local museums and, of course, there is a huge loan programme between national museums and local museums. I agree with Roy completely. It does require a certain amount of funding and, as I said earlier, programmatic activities are likely to be among the first casualties in a real terms cut. But I think we see how important it is among national museums to support local museums, and I think this is an area that we will be looking at very actively.

Q297  Damian Collins: Finally, Mr Clare, you mentioned the Heritage Lottery Fund's support for museums around the country. This is a question regarding building infrastructure costs of museums, particularly regional museums. Do you think there is a danger that while a lot of this investment has been very welcome it has created some museums and new museum exhibition spaces which are difficult for the local economy to sustain and support, and which may have been over-ambitious in their initial inception, no matter how well meant that was?

Mr Clare: I think optimism bias is a key issue and in some of the investment, particularly the early investment, there was greater optimism than is perhaps justified. But I don't resent any investment in museums in any part of the country. It is important that the business case is robust and well founded and, unfortunately, not all of them have been. But there have also been some fantastic examples where that investment has repaid many times over the reach into audiences that either can't travel to London, or for whom London is a very long way, who have access to not only a great space, which is owned by them locally, but also a space that can then show under incumbent indemnity rules at national standard.

  We do need more spaces like that in the right places, and I think it's a business case judgment, case-by-case. But I know that the closer relationship that we are advocating between Renaissance and HLF is designed to achieve a greater co-ordination of perception, so that where one kind of investment, perhaps by HLF, is complemented by another, namely Renaissance. Of course the important third element is what is the local funding like, and evidence of that. I think that new approach that this Coalition Government has endorsed in principle is a powerful one if we can take it forward.

Dr Dixon: I agree, there is a lot of evidence out there. The Millennium Commission funded a number of large developments across the UK. We now have enough evidence of how those performed against their business plan to feed into future thinking. I'm a great believer in lessons learned. I think we do need to look at the lessons learned. The HLF itself is working quite actively on how it takes learning from big and small projects that it's invested in, and how to spread that knowledge to potential recipients of future grants.

Chair: I think that's all we have. I thank you both very much.

Dr Dixon: Thank you.

Mr Clare: Thank you.


1   Note by witness: and galleries Back

2   Witness correction: This has actually been calculated by Visit Britain and not Arts & Business [http://media.visitbritain.com/News-Releases/Britain-s-museums-and-galleries-generate-1billion-for-the-economy-b31.aspx] Back


 
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