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A parliamentary inquiry has delivered a scathing assessment of the NSW government’s cultural priorities, finding that the push to revive Sydney’s nighttime reputation has come at a direct cost to the state’s arts and culture sectors.
The report also describes the imminent closure of the Australian Design Centre (ADC) – the state’s only dedicated craft and design hub – as a “travesty” and a symptom of a broader funding crisis.
Just weeks shy of its 62nd birthday, the ADC in Darlinghurst is set to close its doors on June 30 after losing federal funding in 2025 and failing to secure state support to bridge its annual shortfall.
The inquiry highlighted a stark disparity in the growth of government agencies within the arts and transport portfolio, which warranted “stronger public justification”.
Established in 2021, the Office of the 24-Hour Economy Commissioner is responsible for working with councils, businesses and the community to build vibrant, diverse, inclusive and safe 24-hour economies across NSW.
Its workforce has grown from 12 to 64 full-time equivalent staff in just four years, according to the report’s findings, as the government has sought to revive the state’s flagging nightlife.
This expansion stands in sharp contrast to the fortunes of Create NSW, the state’s primary arts agency. Despite being responsible for distributing more than $73 million in funding and policy development, Create NSW recently axed more than 25 per cent of its staff, leaving it with a leaner leadership structure than its nighttime counterpart.
The relatively top-heavy 24-hour economy office includes an executive director, Michael Rodrigues, four directors and 17 associate directors drawing potential salaries ranging from $150,000 to $386,000. This compares to a total of 16 leadership positions at Create NSW, which has an equal 64 full-time equivalent staff positions, down from 95.
Inquiry chair and Greens MP Cate Faehrmann joined with Shooters, Fishers and Farmers Party and the opposition to launch the inquiry after what she said were repeated failures to obtain detailed budget information through standard parliamentary channels.
The majority report expressed deep concern about the “lack of detail, accessibility and transparency” regarding operational expenditure, stating that current disclosures do not enable effective parliamentary scrutiny.
The committee also found that changes in staffing across these portfolios had not been sufficiently justified as to how they supported the broader cultural sector, arguing that the current funding framework was undermining sustainability of independent artists and small-to-medium organisations.
In a dissenting report, three Labor committee members defended the government’s record, arguing that spending on arts and culture was at record highs and vibrancy reforms had successfully slashed red tape, ended lockout laws and quadrupled the number of music venues accessing incentives.
In its latest report, the 24-hour economy office found the state’s $110 billion nighttime sector was in better shape than it had been for a decade. However, Arts and Night-Time Economy Minister John Graham conceded that post-pandemic headwinds, including high-cost pressures and low wage growth, continued to suppress the rebound of the nighttime economy.
From evidence received, Faehrmann said it was clear that major organisational restructures were “proceeding without adequate transparency, and increasing pressure is being placed on both the workforce and the sectors they are intended to support”. In the arts, music and nighttime economy sector, the evidence presented a “compelling picture of a sector under strain”.
“Underfunding in the arts sector is placing the entire ecosystem at risk, with evidence showing the sector is being asked to deliver more with less,” she said.
“The restructure of Create NSW in 2025 has resulted in a loss of experience and institutional knowledge to the detriment of the sector overall.
“In addition, the shift towards prioritisation of the 24-hour economy and contemporary music has come at the expense of other forms of art, music and culture.”
The committee called on the NSW government to urgently restore baseline funding to the Australian Design Centre to secure its future and preserve vital expertise in craft and design.
ADC chief executive Lisa Cahill seized on the findings to urge the NSW government to act immediately to prevent its closure, and the government advocate on its behalf for federal funding to also be restored.
Graham’s office has been contacted for comment.
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