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SINGAPORE: The National Arts Council (NAC) said on Tuesday (March 2) that it was “disappointed” with The Substation’s board decision to close permanently and that the company was “increasingly financially unsustainable.”
Earlier Tuesday, the Substation board cited the inability to fully return to the facility at 45 Armenian Street and the loss of autonomy over the space and facilities as reasons for its closure.
It has been a mainstay in the Singapore art scene for over 30 years.
READ: Substation to be closed permanently after moving out of the Armenian Street building
The NAC said the center has been aware of the decision to renovate 45 Armenian Street since 2017.
He met with The Substation’s board on February 15 this year and emphasized that he would like the company to continue its role as an “arts incubator,” a council spokesperson said.
The spokesperson added that the council has “constantly explained” to the center that it would be welcome back after the renovations, which are scheduled to be completed in 2023, but that it would be as a co-tenant with other art companies.
“This would allow more arts companies to benefit from the improved space,” the NAC spokesperson said.
“The request of the Substation was to return as the only tenant and be the only user of the entire space.”
“EACH TIME MORE FINANCIALLY UNSUSTAINABLE”
According to the spokesperson, The Substation had sought autonomy over the entire space in order to generate income from the rental of the place, including the space previously leased to Timbre.
Commercial leasing contributed to a substantial proportion of The Substation’s annual revenue, he added.
“However, NAC was of the opinion that this was neither feasible nor sustainable in the long term,” the council spokesman said.
“In a landscape where there are now more organizations and professionals, the space would be of greater benefit to the artistic community in general, when it was made available to other artistic groups.”
The NAC said it was concerned that the Substation was “increasingly financially unsustainable” after 31 years of financial support.
“The government provides almost 90 per cent of the substation’s revenue through direct and indirect financing. This indirect financing is done through the provision of 45 Armenian Street as a subsidized location for the substation. It pays around S $ 70,000 in rent. per year, “the NAC said. in response to inquiries from CNA.
“At the same time, the Substation rents part of this subsidized premises on a commercial basis and keeps the proceeds. This includes the rent to Timbre and various other users, which represented between S $ 410,000 and S $ 525,000 of their income in the past three years. “
The council spokesperson said the NAC had explained that no art business would be feasible if it depended for nearly 90 percent of its income on government funding, including commercial rental income derived from leasing parts. of grants. location at 45 Armenian Street assigned by the NAC.
The NAC said The Substation’s own artistic programming activity has “slowed significantly” over the years. He noted that the company’s spending on programming has been a “small proportion” of total operating expenses, at 23 percent on average from fiscal 2017 to fiscal 2019.
The substation has also incurred more than S $ 1.5 million in wages and other labor costs.
“This would not be sustainable in the long term and would pose more challenges in a pandemic. Additionally, there are company-owned assets that will need to be replaced as the building ages,” the NAC said.
“The next two years, when 45 Armenian Street is being upgraded, would have been an opportunity for The Substation to review its current artistic and financial strategies and reconsider its mode of operations, as its current model is unsustainable in the long term.”
CONTINUED SUPPORT FOR SUBSTATION
The council spokesperson said the NAC has offered ongoing support for The Substation “throughout the renovations period and beyond,” including several makeshift installations.
It also agreed to increase its subsidy during the period while The Substation operated from such facilities. This additional funding would be in addition to funding it has been receiving since 1990, as well as funding from the Government’s COVID-19 support schemes.
The grants would have helped mitigate operating expenses while off-site, while allowing The Substation to continue with some programming, the council said.
“We had invited them to share their future plans for sustainability and growth so that we could work towards a positive outcome,” the NAC said.
“We were prepared to work closely with The Substation to review and develop plans for it to maintain its mission and vision, and enhance its contributions to our artistic ecosystem.”
“A HOME FOR THE COMMUNITY OF THE ARTS”
In an FAQ section on its website, The Substation addressed the issue of using 45 Armenian Street for multiple arts groups rather than as a single arts center.
He pointed out that the increase in the number of artistic groups and spaces is “scarce”, but pointed out that “he has always worked with emerging artists and artistic groups.”
The center said its facilities have been rented primarily for artistic use and for members of the arts community.
“After the 45 Armenian Street upgrade, had the NAC seen fit to return 45 Armenian Street to The Substation, 45 Armenian Street would have continued as a home for the arts community and a myriad of diverse artists and multiple arts groups, as it has been for the last 30 years, ”the center said.
He added that NAC’s decision to regain control of the facility “appears to have been largely for utilitarian reasons.”
“In making this decision, he also decided not to preserve the identity and precious heritage, built over the past 30 years, of 45 Armenian Street,” said The Substation.
“We believe that there must be other buildings or spaces in Singapore, without such a long intangible legacy and historical significance, that could have served as a multi-tenant art installation operated by the NAC.
“We understand that all policy decisions come with trade-offs. However, we also note that the hard work of making spaces also comes with trade-offs, such as the need to prioritize identity and heritage over utilitarian or functionalist concerns. “
