In tight economic times discretionary spending is usually one of the first things households cut. Having made that decision, one of the ‘‘nice to haves’’ which often get pushed over the tipping point is a good night out. No more cafe lunches, restaurant dinners or after-work drinks. And almost certainly no pre-show or after-show conviviality either, as the tickets to a show are almost certainly going to be deemed surplus to requirements. That is a sad irony, because great art is often inspired by tough times. A powerful film, moving book or thought-provoking theatrical production can be an uplifting and positive moment in otherwise tough times. It is seldom easy making great art. Funding is scarce, sponsors have many competing demands on their own meagre discretionary funds, and achieving one’s artistic vision — let alone keeping fed and watered while doing it — has never been easy. The ‘‘struggling artist’’ is a lazy trope but also all too often an accurate one. People are quick to praise great work made in adversity but seldom wonder what might have been if the artist in question was not starving in a garret. Governments and government departments do not act any differently from households. They too have budgets to meet, and the added responsibility that it is taxpayer money they are spending. The current government was elected to deal with what it termed the ‘‘cost of living crisis’’, and most departments were asked to fund savings of around 10% or more, and also to reduce staff numbers. Some departments are more vulnerable than others; police and the defence force are seldom in the firing line of such cuts, but grants for research, sport or the arts are usually among the first targets eyed up by deficit hawks. Creative New Zealand — the government’s arts funding body — last month announced $104 million worth of grants to 94 arts organisations and groups. These were 1- to 3-year grants — several years ago CNZ moved to making multi-year grants its funding preference so that organisations would have some welcome certainty that funds were coming in before setting up programmes or hiring staff. Some Dunedin organisations — Blue Oyster Gallery, the Dunedin Fringe Arts Trust and the Dunedin Symphony Orchestra — are welcome and grateful recipients of multi-year funding. Few would argue that this trio play an important role in maintaining Dunedin’s well-deserved reputation as an artistic hot spot. However, this latest funding round came with stinging news for the Dunedin Festival of the Arts. Previously the recipient of an average $135,000 per festival — about 15% of its budget — it is now ‘‘getting’’ nothing at all from CNZ towards staging the event. To say the least, festival organisers are hurt and mystified by this news. So are the loyal punters who help the event bring in an estimated $4m-$5m to the Dunedin economy and stalwart sponsors — such as Allied Media, publishers of the Otago Daily Times — who happily support an event which brings joy to thousands and brings the city alive for its duration. The ramifications of this decision will be felt further afield. New Zealand has a well-developed regional festival circuit, and a multi-centre tour is often the key to a production getting on stage at all, let alone breaking even. The highly-successful Wānaka Festival of Colour, for one, will be watching developments anxiously, for in the past it has shared many productions with Dunedin. The Festival of Colour is still awaiting the outcome of its funding application, and Dunedin receiving the cold shoulder is likely to have nerves jangling in the Lakes District. Less than 10% of CNZ’s latest funding round went to South Island recipients. This does not necessarily mean the South was being deliberately snubbed, as the list of those funded is highly variable and influenced by who is planning to stage what. But at first glance it is hard to comprehend why the Dunedin festival has missed out, given CNZ would surely have known of the event’s importance for arts across the country, not just in the lower South. The festival exists by popular demand. Hopefully this decision can be reviewed so that it can return for an encore.