Cash Shortfall Threatens 125-year-old Art Gallery

Monday, 7 April 2025, 6:53 pm
Article: Max Frethey - Local Democracy Reporter

The board chair of the Suter Art Gallery in Nelson has warned of “dark clouds on the horizon” as costs continue to rise.

Nelson City Council provides an inflation-linked annual grant to the Suter, but it isn’t proving enough to meet ballooning bills.

“Things like insurance, electricity, our audit fees went up substantially … at $40,000, it’s a lot of money for a small organisation like ours,” Board chair Steve Green told Nelson City Council on Thursday when he presented the gallery’s half-year report.

To limit the rising costs, the Suter has reduced its staffing to “skeletal” levels, and had stopped funding depreciation despite “probably just establishing a problem for ourselves four or five years hence”.

Green said the current economic environment was making it “far more difficult” to raise additional funds.

As of 31 December 2024, the gallery had a net loss of $183,000 which was then expected to climb to $264,000 by the end of the financial year.

The gallery will tap into cash reserves to cover its shortfall this year. That pot includes money from bequests and investments made for the gallery’s collection.

Behind some of the increased costs was the gallery’s heating, ventilation, and air conditioning (HVAC) system which was “tottering along” and needed “major” refurbishment.

Green said the HVAC system was slated to be upgraded in about 12-18 months, “providing it holds together … it’s pretty much band-aid stuff” and was hoped to leverage new technology to bring down the gallery’s emissions and electricity use.

Funding of about $190,000 has been allocated for that work.

Ongoing concerns also linger about the future of the Ministry of Education’s Enriching Local Curriculum (ELC) programme.

Through the programme, the Suter is awarded about $40,000 to deliver out-of-school classes, described by teachers as “incredible”, to 6000 students across the Nelson Tasman region.

“There’s been no announcement made, but rumours are flying around the Ministry,” said the gallery’s new director, Toni MacKinnon.

“It’s not looking very positive, and I don’t think there’s any expectation from the sector that that funding will be renewed in the next financial year.”

MacKinnon said the gallery was waiting with “bated breath” for an announcement, but it would explore its options should the funding be reduced or disappear.

“There’s a lot of things we’d rather not do than education. Schools are our future and getting those kids through the door is a big part of what we do.”

A Ministry spokesperson has previously told Local Democracy Reporting that any decisions on the future of ELC offerings would be confirmed through the Budget 2025 process.

When presented with the financial information, councillor Pete Rainey asked if the Suter had explored implementing an entry fee.

While Green and MacKinnon said it had been considered, they had observed that other museums and galleries regionally and around the country had seen visitor numbers plummet when admittance fees were introduced.

Mayor Nick Smith said that he would “connect directly” with the relevant officials to try and ensure the “valuable” ELC programme was retained.

As Minister of Education, he helped establish the programme back when it was known as Learning Experiences Outside the Classroom (LEOTC).

“I will be very disappointed if it is curtailed.”

The Suter, a living wage employer now with just 6.5 full-time equivalent staff, has also in the past said staffing costs were a challenge.

The living wage will rise $1.15 to $28.95 in September.

Local Democracy Reporting is local body journalism co-funded by RNZ and NZ On Air

© Scoop Media

Local Democracy Reporting

Content from the Local Democracy Reporting (LDR) service is published by Scoop as a registered New Zealand Media Outlet LDR Partner.