Thank you very much for the question.
Indeed, the preliminary figures published by Théâtres associés show a 53% increase in costs with 20% inflation over the same period. In practical terms, this is leading to cutbacks in variable spending, in other words, spending on artists and creation. We are talking about a 28% reduction in creation. This is what's known as “artistic shrinkflation”. It's the reason why we consider it vital to enhance infrastructure funding so that these sites can fulfill their mission.
Keep in mind that the business model followed by theatre institutions relies very little on government funds. For example, for a hall with a seating capacity of over 800, federal funding varies from 15% to 19%. The remainder is generated by box office receipts, own-source revenues and private funding.
Ms. Juneau talked about the realignment of the Canada cultural spaces fund. This fund had very limited resources, so the arts and culture community really saw the build communities strong fund as an opportunity for better infrastructure support.
However, we are still very concerned in some regards. It is imperative that minimal funding is set aside for the arts and culture sector. It is also imperative to ensure regional equity, since not all provinces are equal. In fact, some receive no infrastructure funding. This fund should be accessible in every province, and in remote regions or large urban centres alike.
Furthermore, theatre renovation projects require specific expertise related to the nature of what we do, which is to create, to appear before an audience and so on. It requires cultural expertise.
Today, I believe that our role as witnesses is not only to provide you with a list of problems, but also to suggest solutions. Apart from the funding needed for cultural infrastructure, we could also introduce measures that might not cost much, but that can make a big difference. For example, it could be offering predictable, multi-year funding indexed to inflation to cover infrastructure-related costs, as well as all the other costs associated with the property management specialists who will set up these projects.
We are firm believers in maintaining our real estate inventory. In the current economic context, it's important to clearly understand that we are not there to increase our cultural real estate inventory, but to maintain and improve what we have. We cannot ignore the importance of prioritizing accessibility, climate resilience and heritage conservation issues in relation to cultural infrastructure funding criteria.
Moreover, it's important that federal, municipal and provincial governments adopt a coordinated approach.