New Indemnification Program Aims to Increase Public Access to Canadian Heritage Collections
TORONTO, November 2, 1998 -- Minister of Canadian Heritage Sheila Copps today announced the introduction of an Indemnification Program for major travelling exhibitions of fine art and heritage collections as well as an increase of $2 million to the budget of the Museums Assistance Program (MAP) beginning in 1999.According to Copps, today's announcement reaffirms the government's continuing commitment to increase Canadians' access to heritage collections and represents the first major policy statement on access to museum, archive and library collections in almost 10 years.
"The indemnification program will reduce the insurance costs associated with mounting major travelling exhibitions and will enable museums to redirect funds to other priorities. Indemnifying travelling exhibitions against loss or damage will help heritage institutions reach out to Canadians since museums, galleries, archives and libraries in every province will be able to access the program," said Minister Copps.
The indemnification program is a partnership between the federal government and Canadian institutions and will draw on the successful experience of other countries. A unique Canadian element is that the program will provide indemnification for domestic as well as international exhibitions. Legislation will be introduced in Parliament this fall, with the launch of the program expected in the spring of 1999.
The increased funding to MAP means $9.4 million will be available next year for projects which encourage excellence in museum activities and increased access to our heritage. Since the early 1970s, the MAP has been the federal government's main instrument of direct financial support to Canada's nonprofit museums and related heritage institutions and has provided more than $230 million to institutions across the country.
"People will have a better opportunity to view and learn from our heritage treasures as a result of this increase in funding to MAP," said Minister Copps. "All these measures I am announcing today will reinforce existing federal programs that support cultural heritage institutions."
As part of the national strategy on public access to heritage, the Minister also announced federal funding of $50 000 for the Canadian Museums Association's National Symposium on Travelling Exhibitions taking place later this month in Ottawa.
As well, through a partnership between the Canadian Museums Association, the Canadian Conservation Institute and the Canadian Heritage Information Network, the Centre for Exhibition Exchange Website will enable Internet users to access information, expertise and products about the exchange of travelling exhibitions. The Canadian Conservation Institute and the Canadian Heritage Information Network are both Special Operating Agencies of the Department of Canadian Heritage.
Information:
Catherine Gagnaire
Communications Assistant
Office of the Minister of Canadian Heritage
(819) 997-7788
BACKGROUNDER
INDEMNIFICATION FOR TRAVELLING EXHIBITIONS
What is Indemnification?
Indemnification is a process through which the Federal Government assumes financial risk, and provides compensation, for damage or losses, should these occur. Through the establishment of an Indemnification Program for Travelling Exhibitions, therefore, the Government of Canada will assume the financial responsibility for loss or damage to objects in eligible travelling exhibitions.
Insurance Program for Travelling Exhibitions, 1985 -- 1995
From 1985 to 1995, the federal government provided assistance to cultural institutions through a program of cost-shared insurance. Through this program, the federal government alone spent almost $6 million in premiums for commercial insurance. Since the discontinuation of this program in 1995, the museum and gallery community has requested a program of government indemnification for travelling exhibitions.
Indemnification is different from insurance
With indemnification, the government is "the insurer". The government agrees to cover loss or damages to an exhibition that meets strict criteria in a number of areas, including plans for security, environmental control, and artifact handling.
Under indemnification, no money is expended unless damage or loss occurs. In this way, museums and galleries are spared the costly expense of commercial insurance premiums.
Advantages for Canadian museums
Indemnification will relieve the necessity for museums, galleries, archives and libraries to pay high insurance premiums connected with the development, circulation and hosting of travelling exhibits. Limited financial resources can therefore be redirected to the direct costs of exhibit development, transportation and programming.
The availability of indemnification will also provide institutions with a competitive edge in negotiating the loan of prestigious foreign exhibitions, or significant items for travelling exhibitions under development.
Benefits for all Canadians
Indemnification, and the resulting reduced costs to museums, galleries, archives and libraries, will stimulate travelling exhibitions within Canada and increase access to Canada's heritage through the exchange of artifacts and exhibitions.
It will also facilitate the hosting of major international exhibitions thereby providing greater access to the culture and heritage of other nations.
Eligibility for Indemnification
Eligibility will be determined by the value of individual exhibitions (the total value of objects in the exhibitions must have a value in excess of $500,000 ) and limited to $450,000,000 per exhibition. The total amount of indemnity available for all exhibitions in any fiscal year will be limited to $1.5 billion.
A review of existing heritage institutions and their programming activities indicates that 30 to 40 museums, art galleries, archives and libraries in all regions of Canada will be eligible initially, with this number expected to grow in the future.
Legislation and start of the program
We expect to introduce indemnification legislation in November 1998, and hope that the program will be in place by spring 1999, to accommodate requests for indemnification of exhibitions that are developed as millennium projects.
Foreign indemnification programs for travelling exhibitions
The United States, Great Britain, New Zealand, Australia and France are among fifteen industrialized countries which provide government-sponsored indemnification programs.
Indemnification claims in other countries
There have been few or no claims received by similar programs in other countries, and therefore minimal costs to the governments involved.
For example, in 23 years of operation, the United States Indemnity Program has received only two claims, at a cost of just more than $100,000 US. Exhibitions valued at $3 billion US are indemnified annually under the Program.
Minimizing financial risk to the government
Risk to the government will be minimized by stringent eligibility criteria in a number of areas, including plans for security, environmental control and artifact handling. Where necessary, expert advice will be sought from risk management experts outside government before agreeing to accept a risk.
Deductibles and partnerships
A sliding-scale deductible will eliminate small claims from the Indemnification Program.
In practice, this will mean that institutions will be responsible, through existing insurance policies or insurance purchased specifically for this purpose, for claims up to a predetermined amount (the deductible).
In requiring this financial contribution by indemnified institutions, this program will effectively be a partnership between the government and those institutions. International experience demonstrates that this is a successful approach.
Economic impact of travelling exhibitions
Travelling exhibitions result in significant economic benefits for the host institutions and for its province, region and municipality. This impact extends beyond the cultural sector to the creation of jobs, manufacturing and consumption of goods and services, and tax revenue for all levels of government. For example, the Barnes exhibition hosted by the Art Gallery of Ontario from September 1994 to January 1995, stimulated net economic activity of $137M in goods and services, generated more than 2 000 jobs and a total of $42M in federal, provincial and municipal taxes.
BACKGROUNDER
MUSEUMS ASSISTANCE PROGRAM
Introduced in the early 1970s, the Museums Assistance Program (MAP) provides financial assistance to Canada's nonprofit professional museums and related institutions. The Program's aims are to facilitate public access to museum collections and to assist in the preservation and management of these resources.
Since 1972 the Program has provided more than $230 million in funding to the museum community across Canada.
The Program currently provides project assistance to institutions on a matching basis in four priority areas: access and services to the public; collections support and preservation; aboriginal museum development; and organizational and professional development.
The Program is co-managed by the department's Heritage Branch and the Regional Offices of the Department of Canadian Heritage located in Vancouver, Winnipeg, Toronto, Montreal and Moncton. All projects are submitted under an annual competitive process, and are assessed through national and regional peer review panels.
Over the years, the Program has had a significant impact on museum practices and activities. MAP funding in support of public access has helped museums deliver exhibitions and interpretive public programs. Long term preservation of heritage collections has been aided through project funding for documentation and conservation activities. Aboriginal community initiatives involving the preservation of their heritage have received constant support. The museum sector has developed an even higher level of professionalism through the funding of symposia, colloquia and other development activities at national and provincial levels.
The $2 million increase in the MAP budget will increase the annual funding for MAP to $9.4 million in 1999-2000 and in subsequent years. It demonstrates a commitment to increase access to Canada's heritage and enable Canadians in all parts of the country to have a greater appreciation of their collective heritage. Excluding the appropriations made to the National Museums, the Federal government's funding to museums and heritage institutions through various programs will now total approximately $14 million annually.
Projects which received funding in 1998/199 include:
"Making Cents Out of Money", a travelling exhibition from the Nickle Arts Museum and the Provincial Museum of Alberta slated for the year 2000, will explore the culture, history, and mystique of coins and money throughout the world.
A research initiative on repatriation of cultural materials of the Yellow Quill and Kinistin First Nations of east-central Saskatchewan, proposed by the Yellowquill Development Corporation which will provide more direct access and co-management of artifacts and other cultural materials originating from these communities.
"The Arctic Project", an exhibition prepared collaboratively by the Art Gallery of Windsor and the Edmonton Art Gallery will provide a comprehensive overview of historic representations of the Canadian Arctic from both Inuit and non-Inuit perspectives.
The production of the "Cyberzoo de Granby", a virtual exhibition and Web site will put the Granby Zoo in touch with Canadians in all parts of the country, and will take the visitor "behind the scenes" to better appreciate the scientific aspects of managing a living collection, as well as provide enriching information for students and educators.
An initiative involving the digitization and documentation of the collections at the Art Gallery of Nova Scotia which will enable the gallery to incorporate electronic representations of its collections into a database which supports the management of these resources, and the inclusion of this data in the Gallery's public web site.
In the area of professional development, the Bursary Program funded by the Program and operated by the Canadian Museums Association will continue to allow Museum workers across the country to increase their expertise and build new skill sets, by providing financial support for personnel to attend professional development activities.
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