Performing arts contribute €147 million to the Irish economy every year, and about half of the money invested by the State in arts funding later comes back to the Exchequer in taxation, so the net cost of Government support is almost half its gross cost, a Theatre Forum report on the economic and socio-economic contribution of the arts has found.
Three million people attended arts events last year, with 50 per cent of those attending drama, according to the report, Economic Impact of the Performing Arts in Ireland, released yesterday. The report was compiled by Fitzpatrick Economic Associates for Theatre Forum, the "voice of performing arts in Ireland".
Of the €147 million contributed to the economy, €37 million is through indirect expenditure by audiences on travel, food, drink, accommodation, etc. The income of arts organisations (including box office, sponsorship, State funding and other earned income) in 2003 was €82 million and it is estimated that 5,000 people work in the sector, three-quarters of them part-time (the equivalent of 2,700 full-time workers). The sector spent €73 million on artistic programmes, salaries, building and external services.
"We now know how many people are going to events, what events they prefer and what the key issues are for venues, organisations and staff," Theatre Forum chief executive Ms Tania Banotti said.
"We have high hopes that this report will be instrumental in persuading the Government to increase funding to the arts. For the first time in 10 years we can show how much the sector contributes economically - €147 million in 2003. It shows we are not simply asking for a dig out from the State since 60 per cent of our income is raised by performing arts organisations ourselves. We are simply asking that the Government delivers on its promise of a national arts budget of €70 million by 2005," which would bring Ireland more into line with what most EU countries spend on the arts per capita. Performing arts received €33 million from the State in 2003, and three-quarters of this came from the Arts Council.
The report recommends VAT on theatre tickets should be zero rated, rather than VAT exempt as they are at present. The change would allow theatres to reclaim a portion of the VAT they pay. The information was presented to the Oireachtas Committee on Arts last week and copies of the report will go to Government, policy makers and arts organisations. The report can be read at www.theatreforumireland.com