Malta

Last update: February, 2015

In 2014 public cultural expenditure stood at EUR 32 million.[1] Total public expenditure on culture and the arts has been on an upward trend in the period between 2007 and 2014, after increasing considerably in 2005, possibly reflecting a different approach to the sector following EU membership. 2008 marked the reversal of a downward trend from 2005 to 2007, due mainly to a downward variation of expenditure in capital restoration projects (off-setting an increased level of EU funding for such projects during the same years).

Indicator 1: Public culture expenditure, at all levels of government, per capita in 2014 was EUR 75.

Indicator 2: % of GDP will be released in 2015.

Indicator 3: The share of cultural expenditure of the total public expenditure in 2014 was 0.93%.

(Recent developments affecting these indicators are outlined in chapter 7.1.3).

Table 6:    Cultural economic indicators, 2005-2014

Source: Creative Economy Working Group.

Last update: February, 2015

As a small nation state, cultural funding in Malta is distributed 100% directly by government, either through direct expenditure or by transfer to its agencies. However, local councils are in a position to spend their yearly allocation according to the council's respective year-plan.

Table 7:    Public cultural expenditure: by level of government, 2014

Source: Creative Economy Working Group.

Last update: February, 2015

Budget 2014 focused on maintaining economic stability and ensuring that everybody benefited from growth. In the chapter on Economic growth through diversification, the cultural and creative industries were highlighted as potential contributors to achieve and sustain macro-economic stability so that local and foreign investors can keep generating enterprise, wealth, and employment.

Specific reference was made to the creative economy strategy. The strategy prioritises four pillars: education and professional development; route to market; internationalisation; and governance. The aim of the strategy is consistent with the vision of Malta's new cultural policy in transforming the cultural and creative sector into the most dynamic facet of Malta's socio-economic life in the 21 century, with the first national milestone being the hosting of the European Capital of Culture in 2018.

Cultural development has also been linked to the diversification of Malta's tourism product with specific reference to domestic and winter-time tourism.

In the National Budget for 2014 Government committed to a total investment of EUR 31 824 000 in the cultural and creative sectors - an additional commitment of EUR 4 million, or +14.4%, over the 2013 budget.

Table 8:    Direct state cultural expenditure and transfers (central level): by sector, 2014

(Figures provided below are Estimates for the year 2014, as approved on November 2013)

Source:    Creative Economy Working Group.

Cultural expenditure for each year from 2005 to 2011 is re-grouped in the table below into Cultural Heritage, Art, Media and Interdisciplinary. The table below shows the share of these segments of the total cultural public expenditure has been changing. Although expenditure in cultural heritage retains the highest share, other expenditure in Art and Media has been gaining. Cross-cutting sectoral initiatives also started in 2010 and more than doubled in 2011.

Table 9:    State cultural expenditure: by sector, in thousand EUR, 2005-2014

Source:    Creative Economy Working Group/ Culture Directorate.

Highlights from the 2015 Budget for the cultural and creative sector are:

• Overall 25% increase in funding for public culture and creative sector agencies and initiatives when compared to the 2014 budget;
• total government investment in the sector for 2015 will be EUR 43 million, an increase of 52% (EUR 13.7 million) over the level of total government investment for 2012. From this total, EUR 25.6 million (60%) falls under the Ministry responsible for Culture, while the rest (EUR 17.4 million) falls under a number of other ministries;
• total cumulative government investment in the sector since 2013 has now reached EUR 102 million;
• all recurrent expenditure areas in culture and creativity (arts, heritage, media and interdisciplinary initiatives) will experience increases over the 2014 budget, cumulatively amounting to 28% (EUR 6.3 million). The total recurrent expenditure in these four areas is EUR 32.3 million, an increase of 75% (EUR 13.8 million) over the same category of expenditure in 2012;
• total capital expenditure by government in 2015 for all areas of culture and creativity will be EUR 10.8 million. This is an increase of 17% over culture-related capital investment by government in 2014 and of 42% (EUR 3.2 million) over the same category of expenditure in 2012. This amount does not include the European funds component in European co-funded capital projects, which in 2015 will amount to an additional EUR 7 million, making the total capital investment in culture reach almost EUR 18 million;
• a total of over EUR 6.2 million is being allocated for new initiatives, including the establishment of a Music Academy for the Malta Philharmonic Orchestra, the establishment of a new cultural programme at the Mediterranean Conference Centre, the establishment of a new cultural export fund, a new co-production facility for public cultural organisations to develop projects in collaboration with the Valletta 2018 Foundation, several projects in the field of restoration and urban regeneration, and other investments in music, design, fashion, and the carnival;
• in the arts sector, we are seeing across-the-board enhancements to the existing government financing of public cultural entities. Additional funds are being provided in 2015 to the Malta Philharmonic Orchestra (+ EUR 80 000), the Manoel Theatre Management Committee (+ EUR 39 000), the Malta Dance Company (+ EUR 94 000), St. James Centre for Creativity (+ EUR 36 000), the Arts Council Malta (+ EUR 150 000), the Valletta 2018 Foundation (+ EUR 496 000) and Pjazza Teatru Rjal (+ EUR 1 507 000);
• in addition to this, a number of existing arts programmes and initiatives are also being strengthened, with additional funds being provided for the Malta Arts Fund (+ EUR 20 000), Żigużajg Children and Young People Arts Festival (+ EUR 30 000), and programming support for arts and culture on broadcast media to complement the current allocation for the public service obligation in broadcasting (+ EUR 300 000); and
• in the heritage sector, government is confirming its commitment to a number of national projects that shall strengthen the valorisation and appreciation of national identity, while ensuring its accessibility across all segments of society as well as to visitors coming from overseas. Additional allocations are being provided to Heritage Malta (+ EUR 1 032 000) to enhance its capacity and continue with its work on improvements in museums and historical sites, including restoration works at Fort St. Angelo. Investment in the restoration of forts and fortifications is also on the increase (+ EUR 620 000).

Last update: February, 2015

The current public investment programmes for the cultural and creative industries offer a broad spectrum of funding possibilities to individuals and organisations. The following table plots the extensive range of public investment initiatives that creative practitioners and organisations in the major fields of activity can access at various entry points and development phases.

Table 11:  Overview of programmes of culture and creativity

Table 12:  Direct and indirect funds to support artists, in EUR, 2014

The increase in the Cultural Support Programme in 2007, with MTL 20 000 (EUR 46 586) at its disposal, to a funding ecosystem of more than EUR 2 million in direct investment projected for 2012 has been positively received by cultural organisations and artists. The establishment of the Malta Film Fund and the Malta Arts Fund in 2008 and 2009 respectively filled a huge void in direct support measures to artists (more details in chapter 7.2.2). New funding programmes designed from 2010 present a shift in policies which focus more on stimulating demand, supporting public participation, as well as addressing all the Cultural and Creative Industries (CCIs) as one economic domain with strong emphasis on the contribution of NGOs and creative enterprises as key contributors to creative development.

The current ecology of public investment is very strong on project grants to amateur and semi-professional cultural organisations. On the other hand, investments leading to professionalisation, development and entrepreneurship as the ethos of public-funding programmes are still at the initial phase of implementation. This reflects the current creative ecosystem and the perception that cultural work is predominately amateur or hobbyist. Therefore, successful absorption of the new funding programmes, especially those which focus on entrepreneurial development, are highly dependent on the interest and potential of operators to leap into professional activity and address the aversion to creativity related risk. Although this strategy closely examines the professional needs for growth in the industry, it equally values the economic, social and cultural role of voluntary and community-led activity. This long-standing tradition still retains a very strong profile in Malta's cultural ecosystem and separate platforms need to be created to support their initiatives and activities based on open programmes guided by principles of meritocracy, participation and inclusion as identified in the Cultural Policy.

Culture Card

In 2011 The Culture Card was launched, whereby 15 000 students in the first 3 years of secondary school were given a culture card valued at EUR 15 to spend over 3 cultural events. Additionally, each card may be topped-up online by the card user. Any producer operating through a registered Culture Card box office can receive payments through the card. This initiative has been designed to encourage and support young people to engage in cultural and artistic activities, while incentivising cultural producers to commission new work and programme cultural and artistic activities devised specifically for young people. This reflects the government's aim to develop and create new audiences by investing in cultural demand and by promoting culture and the arts as an entertaining, fulfilling, challenging and exciting activity.   

Kreattiv

Another imitative launched in 2011 is the "Kreattiv" schools creativity programme. The programme is designed to encourage freelance creators and scientists, culture enterprises or organisations to bid for projects with schools or colleges for a scholastic year. Therefore the initiative aims at inspiring young people and helping them learn through creativity. With EUR 5 000 investment per project, over 1 scholastic year, this initiative should initiate creative and innovate projects in classrooms and colleges through partnerships between teachers, students and creators. Such a process utilises creative education as a tool for development, encourage collaboration and contributes to the creation of employment opportunities for creative workers. It is also an effective way of encouraging exposure of potential careers in the cultural and creative industries to young people.

International Showcasing

A number of new initiatives were also announced in Budget 2012. In Budget 2011, government announced a new initiative so that, in 2012, Malta presents the first showcase of the best artistic and creative work produced in Malta and Gozo, to attract international producers, curators and agents, and assist them in further reaching international markets. In the 2012 budget a Cultural Diplomacy Fund was established within the Ministry of Foreign Affairs to facilitate cultural export, collaboration and mobility. A showcase was launched in 2014 as a pilot project to present the national repertoire to international markets.

Band Societies

Recognising the role of Band Societies (traditional brass bands), in the local community life as well as in youth development and music education, the Government intends to set up a EUR 100 000 scheme offering financial assistance to band clubs, helping them in musical training and teaching of youths.

Local Cultural Initiative Fund

A new fund was launched in 2014 to fund small-scale projects by amateur cultural organisations and community-led cultural projects.

Promoting Intellectual Property

Budget 2012 also announced a new incentive in the form of a tax exemption on income from copyright, aimed at increasing the country's competitiveness in the cultural and creative sectors, both on national and international levels. This is an extension of the incentives related to royalty income from patents introduced in 2010, in order to also cover works protected by copyright, including books, film scripts, music and art.

Fiscal Incentive on Cultural Education

A number of fiscal incentives in Budget 2012 were also announced. Government is providing an added incentive to cultural education by extending the income tax reduction on sports education to cultural education. Parents whose children attend courses in cultural and creative teaching institutions will benefit from a EUR 100 reduction on taxable income for costs related to courses given by licensed or accredited schools or teachers. Also in order to provide this sector with an incentive to better organise itself, there will be an exemption from the payment of registration fees for new companies in this sector as well as a three year exemption on their annual payments to the national financial services authority.

Others:

Other initiatives by Government included the allocation of funds for a training programme in films, as well as in culture management. These initiatives are being taken within the preparatory framework of a development plan so that Malta's educational institutions may provide further vocational training in the cultural and creative fields. The Government also allocates funds for artistic works in public spaces and for the acquisition of contemporary Maltese artworks.

Cultural scheme for local councils

A scheme to help Local Councils organise cultural activities in their localities almost doubled in size in 2010, following the involvement of the Malta Tourism Authority. The government scheme was launched in 2008 when 33 applications were submitted for the EUR 138 000 allocated for events in 2009. Of these, 27 were selected for funding through a selection process - 15 councils in Malta and 12 in Gozo. This was the first time financial assistance was given to councils for cultural initiatives. For 2010, the budget has increased to EUR 250 000 to encourage more councils to come up with events showcasing the localities. The authority, which is pitching in with funds, will also be marketing these events in Malta and abroad.

The scheme aims at linking the localities' identity with tourism, thus diversifying the tourism product, while reducing seasonality and providing a better distribution of income within the localities. Military Mtarfa, the Senglea Maritime Festival, the Strawberry Festival in Mġarr, Mediaeval Mdina and Birgu by Candlelight are a few examples of activities organised by the councils that promoted the heritage of each locality. The government hoped the new scheme would also involve a number of NGOs and organisations within localities rather than just the council.

National Lottery Good Causes Fund

Additionally, the National Lotteries Good Causes Fund is also acting as a direct supporter to artists. Of the total funds available from 2008 to 2010, EUR 1.87 million was disbursed to 154 individuals or organisations for Heritage, Arts and Media projects. The top beneficiaries in the heritage sector in 2008, 2009 and 2010 were NGOs. In the arts sector, the State was the top beneficiary in 2008 whereas band clubs received the largest percentage of funds in 2009 and 2010. The top beneficiary for media related projects in 2008 was the State whereas NGOs received most funds for this area in 2009 and the Church in 2010. Due to over-allocation of funds, mainly attributed to pre-electoral commitments in 2013, the fund is currently under review and balancing the accumulated deficit.

Last update: February, 2015

Malta Arts Fund

The 2008 budget established the Malta Arts Fund in order to assist in the artistic and cultural development of Malta. It aims to support artists and arts organisations in fulfilling and realizing their potential and in advancing their skills and level of professionalism, and consequently contributes to strengthening local artistic practice and cultural development. The Malta Arts Fund supports projects and events ranging from audience development, training, artistic research, marketing activities, organisational development and artistic mobility. The Arts Fund distributes EUR 233 000 allocated by central government and a further EUR 100 000 contributed by the Malta Council for Culture and the Arts, co-funding 80% of eligible budgets of small projects up to EUR 100 and EUR 5 000 and large projects up to EUR 20 000. Since 2011 the Arts Fund has included within its structure a sub-fund for the support of artist mobility. In 2012 the fund will be extended by a further EUR 100 000 allocated to support Cultural Organisations.

Malta Film Fund

EUR 233 000 each year are directed through the Malta Film Fund since 2009, seeking to encourage the development and production of Maltese films and documentaries, supporting local talents and boosting the national audiovisual industry as a stepping stone to the international market. Funds can be granted for development (feature films and documentaries) by individuals and companies, covering 60% of the eligible budget, and for production (shorts, feature films and documentaries) by registered audiovisual companies with a track record in audiovisual work, covering 50% of the eligible budget.

Additionally, in 2009 it was announced that the Malta Film Commission will set up the required training courses for the production of films to incentivise Maltese talent and to build the required capacity to strengthen this industry in Malta.

Funds for Literature and Authors

Other specific funds were created to support literary creations and cultural research through the Literary Awards Scheme where the best works of poetry, novel-writing, dramatic texts, research material, translations and children's literature are awarded annually. The Ministry of Education allocates EUR 23 000 annually to the National Book Awards. Additionally a EUR 100 000 fund for the acquisition of books by libraries within the Ministry for Education is being granted yearly since 2010 while, in Budget 2012, EUR 40 000 was allocated for Public Lending Rights for authors and translators of books in Maltese to receive appropriate remuneration when their publications were borrowed from public libraries.

INVEX

In 2011 "INVEX" was launched as an Investment programme to incentivise the professional work of organisations in the fields of art, cultural heritage, and the audiovisual sector. Through this fund, cultural organisations are aided to improve their products, services and internal organisational structures enhancing cultural accessibility and democratisation in the process. Government has committed EUR 150 000 per year to INVEX, enabling the funding of 6 organisations over a three years programme, with a maximum of EUR 25 000 every year for each organisation. Such funds will enhance professional capacities and portfolios by way of organisational growth, research, business and audience development, technological investment and international partnerships.

Digital games Fund and Incentives

After investing in research and a strategy for the development of digital games, Government announced three new measures in 2011 to start implementation in 2012. These are: the establishment of the Malta Games Fund with an investment of 150 000 EUR investing in the development of the local industry through projects related to digital games; a tax credit scheme to Maltese companies wishing to commission educational or promotional digital games, on which credit will be granted on the expenditure incurred on the development of the game or on a maximum expenditure of 15 000 EUR; the extension of a flat 15% income tax scheme for international professionals such as game directors and game designers, with the aim of attracting more experts in the sectors.

Creativity Trust

Additionally the Creativity Trust Fund receives a yearly EUR 200 000 government contribution, and will serve to ensure that investment in the cultural and creative industries is used in a sustainable manner. The trust will also comprise contributions by private sectors. This fund can be used to step up investment in existing schemes, and other new ones. Government also gives fiscal incentives to whoever contributes to this Fund.

Last update: February, 2015

The Ministry for Education is responsible for the provision of grants and scholarships, literary awards, as well as the sponsorship of awards to students and teachers in state and private schools. Other scholarships of a cultural nature are distributed through the Scholarships Section of the Foreign Affairs Department of Malta and the International Department and Student Services at the Division of Education.

Grants for new-comers and established artists, as well as scholarships for further training, travel bursaries or residency programmes, are also provided in part by foreign bodies.

On the basis of reciprocal agreements signed through the Ministry of Foreign Affairs, all major foreign embassies in Malta provide some form of sponsorship, mainly in the field of music training. Another very important agreement is with Italy, a country that receives a constant flow of young Maltese people to train in areas such as the fine arts, music, and restoration and, less frequently, theatre techniques.

Prior to the discontinuation of the Chevening Scholarships programme awarded by British Council Malta, young professionals in cultural management and film studies were supported in their post-graduate studies.

Scholarship Programme

In 2007 the Directorate for Lifelong Learning within the Ministry of Education, Culture, Youth and Sport launched a EUR 10 million scholarship programme part-financed by the European Union Operational Programme II – Cohesion Policy 2007-2013, European Social Fund. The scheme aims at providing more opportunities to promote further specialisation at higher levels of education particularly at a Masters and Doctoral level.

Scriptwriting Competition

Until 2005, another EUR 24 000 were reserved for the annual scriptwriting competition awarding the best three theatrical works written in Maltese, with additional funds allocated for the actual production of the first-placed entry. The award was stopped on the basis that this sector was showing signs of crises and added to the general sense of malaise assailing local drama forms, a condition that the Malta Council for Culture and the Arts (MCCA) promised to tackle. The competition was reinstated in 2008.

National Awards for Innovation and Creativity

The Award for Innovation and Creativity was launched in 2009 for 2010, with a fund of 100 000 EUR which helps incentivise more investment in creativity and innovation in the educational, arts, technology and manufacturing sectors. This also includes recognition for the Young Creative Entrepreneur.

Arts Scholarship Programme

Following the success of the scholarships financed by the government and from European Funds, in 2010 government pledged to continue strengthening the educational aspect in the cultural sector for those wishing to develop their artistic talents. Consequently, the government introduced the Arts Scholarships programme. These scholarships are dedicated to visual arts, which include studies in paintings, sculpture, media, and design, amongst others, and also performing arts such as music, dance and drama. Through this scheme, students wishing to specialise in arts have the opportunity to apply for scholarships in programmes recognised locally and abroad. This initiative, in which government allocated 250 000 EUR for 2014, will provide the opportunity for each individual to continue developing and cultivating their talents.

President's Creativity Award Scheme

Started in 2011, the President's Creativity Awards scheme targets the development of young talent and the dissemination of arts-driven projects which engage with children and young people in the community. Its focused approach on young people and its emphasis on promoting social and community development programmes through art, reflects the drive to reward and fosters talent from an early age, supports the recognition of excellence in art and creativity, and ensures that opportunities for developing creativity are freely accessible to all. The awards programme focuses on three categories. The first strand addresses disadvantaged students in primary and secondary schools with exceptional talent, wherein nominations must be presented by educators in formal, informal or non-formal learning, and awards are up to EUR 1 000. The second strand grants up to EUR 2 500 to be awarded to young people between 17 and 25 who would like to conduct research and development in a creative project in collaboration with a cultural operator. Co-producers are required to be part of the project. The third strand grants up to EUR 5 000, to be awarded organisations and institutions working with creators to develop projects for disadvantaged children and young people.

Last update: February, 2015

There are no professional artists' associations or unions in Malta. Members of the National Orchestra are affiliated to the General Workers Union. 

In recent years, a number of artists have created different art collectives to create collective arts projects. The Association for Performing Arts Practitioners, established as a representative voice for the sector, has been acknowledged through the nomination of two of its members as Board members of two public cultural organisations.