Art Gallery of NSW reports financial deficit, decrease in philanthropy, By Andrew Taylor
- 15th November 2014

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Art Gallery of NSW Art Creative Arts Business Sydney

Disappointing: Last year's summer exhibition America: painting a nation attracted just 57,778 paying visitors. Photo: Tamara Dean

The Art Gallery of NSW has blamed a deficit of $364,000 last financial year on its decision to move the Archibald Prize.

The gallery's 2013-14 annual report, tabled in the NSW Parliament on Wednesday, also revealed revenue from exhibitions, visitor services and benefaction had continued its downward slide, falling from $32.7 million in 2012-13 to $23.8 million last year.

The state's premier art institution is increasingly reliant on the NSW government, with the taxpayer contributing 56 per cent of total revenue of $54.5 million last financial year, up from 44 per cent in 2010-11.

The Archibald Prize was moved from March to July this year, causing a reduction in earnings from the gallery's commercial operations.

"However, this change is expected to have a positive impact on visitation and operations in future years," the report said.

The gallery received 1.16 million visitors in 2013-14 – a similar result to the previous financial year but less than the 1.44 million people who visited the gallery in 2011-12.

"We expect this financial year to be equivalent to our average annual attendances of between 1 to 1.2 million visitors a year," said gallery spokeswoman Natasha Henry.

Last year's summer exhibition, America: painting a nation, attracted only 57,778 paying visitors after it was brought in to replace the cancelled Mongolian exhibition.

In comparison, 305,621 people paid to see The First Emperor: China's entombed warriors in 2010-11, while 366,753 paying visitors saw the Picasso exhibition in 2011-12.

However, the gallery expects to increase visitor numbers and revenue this financial year: "The exhibition program includes Archibald and Pop to Popism, hence, the gallery's commercial operations will benefit significantly."

Visitors praised the gallery's Sydney moderns exhibition, volunteer guides and events such as Art After Hours, according to the annual report. But 248 negative comments were received about signage, seating and air temperature at the gallery.

The president of the gallery's board of trustees, Guido Belgiorno-Nettis, said he was focused on the Sydney Modern building plans, which will allow the gallery to "transform itself into a genuinely 21st century art museum".

The NSW government has provided $10.8 million for the project, which has been estimated to cost $400 million.

The annual report revealed spending on marketing and promotions had risen from $1.3 million to $2 million in the past 12 months, while spending on consultants increased from $160,000 to $276,000.

In the past 12 months, the gallery reported a drop in revenue from bequests and special funds from $8.4 million to $4.6 million, while the value of donated artworks fell by $5 million to $3.6 million.
Fairfax Media reported in October that key philanthropist Neil Balnaves had stopped giving money to the gallery, saying the process had become too difficult.

The gallery also reported a significant cut in effective full-time staff positions from 247 in June 2012 to 190 in June 2014. But the number of senior executive staff, paid more than $167,100, increased from three to seven in that time, which a gallery spokeswoman said resulted from a change in employment classification.

The gallery's director Michael Brand is paid $445,000.

(Fairfax Media)