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The Arts Council of Wales (ACW) has offered a cautiously optimistic response to a series of proposals put forward by the Welsh Assembly Government (WAG), following its review of Assembly Sponsored Public Bodies ? the so-called ?bonfire of the quangos?. These proposals include the establishment of a new Culture Board, chaired by the Assembly?s Minister for Culture, to oversee the work of ACW, the National Library of Wales and National Museums and Galleries of Wales, and the transfer of strategic planning functions from ACW to the Assembly.
ACW will retain grant-giving responsibility, though WAG will take over direct control of six major arts organisations: the Welsh National Opera, the BBC National Orchestra of Wales, literature agency Academi, dance company Diversions, Clwyd Theatr Cymru and Theatr Genedlaethol Cymru. These clients alone account for £8.2m of the grants distributed by ACW, and there are fears among staff at ACW that reductions in direct funding could result in job cuts.

Announcing the proposals, Minister for Culture, Welsh Language and Sport, Alan Pugh AM said, ?The review into the structure and function of the quangos has ? allowed us to take a closer look at the link between government policy and delivery on the ground.? However, the announcement was viewed as a climbdown by opposition politicians who had campaigned for the preservation of ACW. Welsh Liberal Democrat Assembly leader Mike German, described it as a damp squib, while the Welsh Conservatives described it as a ?policy drawn up on the back of a fag packet,? adding that the proposals ?failed to answer fundamental questions about the scrutiny of decisions taken by the organisations that become part of the assembly government.?

ACW acknowledged ?many positive elements of the proposal? but negotiations between ACW and ministers are ongoing, with concerns being raised about the legitimacy of WAG?s plans. In a public statement ACW expressed its anxiety, ?We welcome the proposed creation of a Culture Board. However, we have serious concerns about several aspects of the proposals, including the implied separation of strategy formulation from the grant-giving operation and the proposed separate treatment for the six national arts companies.? A spokesperson added, ?It is impossible to fulfil our grant-giving role without undertaking an important strategic function? the changes are a long way off, it?s business as usual and ACW has assured staff and the arts community in Wales that its future is secure.?