PRESS RELEASE
29 September 2021
FLASH AUDITS
THREE FLASH AUDITS ON SUPPORT MEASURES
IN THE CULTURE SECTOR DURING THE
HEALTH CRISIS
The Court has published three flash audits analysing the measures taken as part of the
support provided by central government to the culture sector during the Covid-19 crisis.
These audits, conducted in compliance with professional standards, are characterised by the
speed of the investigations. The aim is to draw up an initial review of the funding granted in
2020 and in the first half of 2021 to finance the support measures put in place in three
sectors: film, heritage and the performing arts.
Specific support measures for the film industry during the health crisis
The crisis affected the entire film industry (film production and distribution, technical
industries, festivals, etc.) as well as the activity of the public-sector institutions concerned: the
resources of the Centre National du Cinéma et de l’Image Animée (CNC
- National Centre for
Film and Animation), partly based on the tax on cinema tickets and the tax on television
advertising, fell sharply during the first lockdown, while the Institut pour le Financement du
Cinéma et des Industries Culturelles (IFCIC -Institute for the Funding of Film and Cultural
Industries) saw the cash flow of its loan funds reduced by the suspension of repayment
schedules. The funding granted for the film and audiovisual industries is exceptional: €402m
for the CNC (around nine months of the CNC’s 2019 expenditure) and €51.6m for the
IFCIC.
The Court notes, however, that the link between this additional sectoral financing and the
general compensation schemes put in place by central government (1.2bn paid to companies
in the sector) and the monitoring of possible windfall effects have been poorly developed.
Finally, noting that the expenditure on real “investment for the future” is low (between €20m
and €25m), it recommends that the public
-sector system should now change its focus to
preparing for the future: setting up more robust companies, developing high-level technical
infrastructure, exports and the attractiveness of France.
Specific central government support to heritage during the health crisis
The total amount of exceptional budgetary support for heritage granted by the Ministry of
Culture in 2020 and 2021 is around €710m in appropriations (commitment authorities), or
€870m
if the exceptional contributions from other ministries via their ordinary appropriations
or
via
the recovery plan are added. The business model of the largest museums and
monuments has been undermined by the lack of foreign tourists. Support for these operators,
which is continuing and has even been amplified by the recovery plan in 2021-
2023 (€327.5m),
is particularly costly and may be difficult to sustain. In addition, taking into account the
uncertainties affecting the prospects of tourists visiting heritage sites open to the public, the
largest operators, which used to self-finance 50% of their costs, will have to develop their
thinking, already in progress, on how they need to change their business model. In addition,
as part of the recovery measures, very significant funds have been committed to the
restoration of protected and unprotected heritage: in 2021, the Ministry of Culture doubled
its appropriations for work on historic monuments (€664m in cash
-limit appropriations
provided compared to the €327m implemented in 2018). Launched without really considering
the absorption capacity of the restoration industries, this influx of financing nevertheless
seems to be generating bottlenecks and price pressures, a situation that will probably require
extending schedules in order to absorb this public procurement shock at a reasonable price.
Ministry of Culture support for the performing arts during the health crisis
In mid-
May 2021, the Ministry of Culture had provided €823m of exceptional appropriations
for the performing arts. This sectoral aid came in addition to the cross-sectoral schemes from
which, like any other company, performing arts companies have benefited and to the one-
year extension to unemployment benefit entitlements granted to “
intermittents
” (people in
the entertainment industry who vary between periods of employment and unemployment),
via
the Unédic unemployment benefit agency.
Working at local level through the DRACs
(regional cultural affairs departments) and, sectorally, through the Centre National de la
Musique (National Music Centre) and the Association pour le Soutien du Théâtre Privé
(Association to Support Private Theatre),
the ministry’s role was essential during the crisis.
While the budgetary support, implemented as a matter of urgency, was strong, the measures
taken were not enough accompanied by
ex post
assessment systems. It also seems that having
multiple aid schemes makes it harder to get a clear picture and has not helped all potential
beneficiaries to identify them. Finally, the Court’s audit highlights the significance of the risks
and issues inherent in the recovery phase. Due to the persistence of the effects of the crisis
and despite the likelihood of some support measures continuing in the long term, there is a
high risk of artists and organisations gradually disappearing, including well-established
stakeholders in the sector. This leads to stress that the success of the recovery will largely
depend, on the timing for ending the aid schemes and their targeted adaptation to the most
exposed actors.
Read the reports
PRESS CONTACT:
Emmanuel Kessler
Communication Director
T
+33 (0)1 42 98 55 62
emmanuel.kessler@ccomptes.fr
Julie Poissier
Head of Press Relations
T +33 (0)1 42 98 97 43
julie.poissier@ccomptes.fr
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