The Transformation of the National Theatre as a Prerequisite for Further Development Brno / November 21, 2014

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1 The Transformation of the National Theatre as a Prerequisite for Further Development Brno / November 21, 2014 Jan Burian Director of the National Theatre

2 The National Theatre is the representative Czech stage. It is one of the symbols of Czech national identity. Ever since the National Revival, theatre in the Czech lands has often been viewed as more of a political than artistic question.

3 From multi-company theatre to the present Multi-company theatres arose in Central Europe, primarily in German-speaking countries. As a way to provide audiences with a broad-spectrum theatre programme in times of relative poverty. In the original sense of the term, multi-company theatres usually had little more than regional ambitions. their shortcomings were balanced out by the synergy between individual companies and the artists. At the National Theatre today, companies work absolutely independently and forming their own administrative base.

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5 A Brief History of the National Theatre Opening of the Count Nostitz (German) Theatre (today Estates Theatre) Opening of the Provisional Theatre (now one part of the National Theatre building) First opening of the National Theatre (caught fire after two years) Reopening of the National Theatre Opening of the Neues deutsches Theater (now the State Opera) The Estates Theatre became part of the National Theatre organization After WWII the Neues deutsches Theater renamed to the May 5th Theater as a part of National Theatre organization

6 A Brief History of the National Theatre 1973 Laterna Magika became part of the National Theatre 1983 the New Stage was constructed stage for contemporary theatre After The Estate Theatre lost its operational building (Kolowrat Palace), The National Theatre Historical Building lost one of the two operational building 1992 the May 5th Theater renamed the State Opera Prague with its own autonomy Laterna Magika became an independent organisation 2010 Laterna Magika returned to become a part of the National Theatre organization 2012 the State Opera returned to become a part of the NT organization

7 THE NATIONAL THEATRE THE ESTATE THEATRE STATE OPERA THE NEW STAGE

8 National Theatre current state All subsequent developments can be characterised as compromises and emergency decisions, and not the right technical, artistic and strategic decisions that would ensure adequate conditions for a professional theatre. The compromise-based, extensive and in part forced push towards gradually centralising various theatre buildings into a single institution without a sufficient operational or logistical base was in constant conflict with the demands for artistically and economically efficient operations.

9 National Theatre today Repertory theatre Ensembles: - National Theatre Opera - State Opera (from 2012) -Drama - Ballet - Laterna Magika Founder: Ministry of Culture of the Czech Republic

10 Five Ensembles / Four Genres on Four Stages 2014/2015 season VENUE GENRE National Theatre OPERA DRAMA BALLET State Opera OPERA BALLET Estates Theatre OPERA DRAMA BALLET New Stage OPERA DRAMA BALLET LM

11 Venues for the National Theatre Productions STATE OPERA 1047 seats NEW STAGE 405 seats ESTATES THEATRE 653 seats NATIONAL THEATRE 988 seats

12 Facts and Figures 2013 NT TOTAL OPERA Number of performances Number of ticket sales Number of employees Average monthly salaries in CZK

13 Number of Employees in Opera /2013/ State Opera Orchestra members 122 Conductors of State Opera and the National Theatre Opera 5 National Theatre Opera Orchestra members 131 State Opera and National Theatre Opera Chorus Masters 3 State Opera Chorus members 55 National Theatre Chorus members 59 Opera Soloists 58 Opera Administration (economic, marketing, PR, International Relations...) 7 Dramaturgy and archives 7 Corepetiteurs 8 State Opera operation / production team 14 National Theatre Opera operation / production team 11 Opera Ballet members (NT) 15 Musical instrument custodians 2 Total: employees full-time positions in Opera 495 Total employees in National Theatre 1.338

14 Budget of the National Theatre 2013 Total Revenues (in CZK) State subsidies Ticket sales Other income (sponsors, rent premises, etc) Total Expenses (in CZK) Salaries Percentage of own revenues in total expenses 39,31 %

15 Problems Unsatisfactory funding and administration system Out-of-date type of legal entity - contributory organization Lack of cooperative financing from different levels of public administration Lack of long term financing Political intervensions Remuneration system - low salaries. Impossibility to use own revenues for the salaries. Insufficient possibility to use temporary employment contracts Neglected capital investments. Complicated management (5 ensembles in 4 buildings) Tax issues, especially in the area of VAT - exemption and the differing tax obligations from main and supplementary activities.

16 Solution = Transformation

17

18 Remuneration, contracts Remuneration in performing art institutions cannot continue to be based on regulations designated for remunerating government employees. Especially in the case of artists. Free contracting system should be used in which the remuneration expresses the employee s long-term quality and a sufficient incentive component that reflects quality and the amount of work performed at rehearsals and performances. Mechanical salary regulations, which are creating serious barriers with a negative impact on the theatre s own income, do not belong in the arts. Employment contracts should be entered into for a fixed period and the maximum period this type of employment relationship can be repeated according to individual artistic professions. The current system requires that the repertoire be planned according to the number of employees, and not that employment be planned according to the arts programme.

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20 Board of Directors Management through a board of directors should lead to a more stable environment, which is essential for such an institution. It will eliminate political intervention It is naturally necessary to evaluate the balance of power and responsibilities of the general or managing director, board of directors and theatre authority or authorities in a sensitive manner.

21 Financing The theatre budget, especially contributions from public funds, should be clearly drawn up in advance for a longer period of time. Budget developments should be updated and forecasted in a timely fashion. (No similar institution can function well if it will devote most of its energy to dealing with ad-hoc budget problems and living in economic uncertainty even for the year it is currently in) Transformation must also include the introduction of a financial management system for longer time periods, not just a single fiscal year. It would also be desirable to resolve tax issues, especially in the area of VAT exemption and the differing tax obligations from main and supplementary activities.

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23 Financing The new management system must also provide for a long-term capital investment strategy The National Theatre operates all regular opera and most ballet productions in Prague. It therefore seems natural to arrange cooperative financing for the National Theatre through a joint contribution from the national government and City of Prague. Systematic support for original Czech works, and international coproduction

24 Independent Theatres The solution for the National Theatre is to create truly legally, economically and artistically independent theatres (theatre companies) with a single service organisation. Independent legal entites Opera, Ballet and Drama will use the services of the joint service organisation based on standard commercial relations. This solution not only means the common brand name will not be lost, but will also lead to a significant strengthening in the authority and individual creative directors accountability for the programme and financial results. The management system should correspond to that of a holding organisation.

25 Necessary legislative changes The necessary division of the National Theatre into several separate units will require a fundamental change in legislative and economic conditions. The National Theatre must transform into another type of legal entity that would allow for this type of management. The main principles for the Act on Public Cultural Institutions, right now seems to be the most realistic avenue for making the necessary changes. We are also examining the option of establishing a legal entity that would meet the needed criteria based on the current legal environment.

26 Act on Public Cultural Institutions The most realistic way for making the necessary changes. Main principles Cooperative financing from different levels of public administration. Possibility to jointly establish cultural institution by more public administration bodies. Elimination of political intervention. Liberalization of remuneration system and system of employment contracts. Long term financing. Possibility of establishing a legal entity set up a service organisation. Simplification of the VAT regime.

27 Aims of transformation The aim of transforming the National Theatre must be the creation of an institution that has a modern system of management and uses its exceptional position, which is due to historical developments, public perception and government support, to create theatre works that can face international competition, absorb inspiration from contemporary theatre arts, develop the special features of Czech artistic processes and opinions, and meet the high demands of artistic professionalism. Transformation must lead to the creation of organisational and economic units that ensure the conditions for efficient and artistically effective management.

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29 Thank you for your attention!

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