In its policy statement Delivering a Better Government, the Government gave a commitment to rebuilding and maintaining a strong State public sector, and stated its expectation that the public sector would be an effective, efficient and strategically focused platform for the implementation of Government policy.  

The Report of the Taskforce Established to Review the Machinery of Western Australia's Government "Government Structures for Better Results" (June 2001) noted that there has been a significant growth in the number of statutory authorities in Western Australia, that are either under the direction and control of a Minister and/or resourced by the State, from 131 in 1993 to 165 in June 2001. Government endorsed the recommendations of the Taskforce including recommendation 9, which states:

The functions of each statutory authority in the Western Australian public sector should be reviewed before 1 July 2002 to assess the appropriateness and feasibility of incorporating those functions into departments of State. This review should be coordinated by the Department of the Premier and Cabinet.

During 2002, a review was conducted, aimed at establishing whether it was appropriate for the functions of Western Australia's cultural and artistic statutory authorities (Art Gallery of WA, Library Board of WA, Perth Theatre Trust, Screenwest & WA Musem) should be performed by a department of State, namely, the Department of Culture and the Arts.  

In December 2002, Cabinet endorsed the recommendations of the Minister for Culture and the Arts, the Hon Sheila McHale, on the review of statutory authorities relating to the Art Gallery of Western Australia, Library Board of WA, Western Australian Museum and ScreenWest (Inc).  The status of the Perth Theatre Trust is still under consideration.

Cabinet has approved the retention of the Art Gallery of Western Australia, Library Board of WA and the Western Australian Museum as statutory authorities. Cabinet has also approved the establishment of the ScreenWest Board, which is currently an incorporated association, as a statutory authority and the transfer of the Association's assets and undertakings to the Board of the new authority.

The decision confirms that each statutory authority will operate with a degree of independence from Government direction and control in relation to its specific functions. The artistic and cultural assets will remain vested in the Art Gallery of Western Australia, Library Board of WA and the Western Australian Museum. However, the legislation of each statutory authority will be updated to incorporate accountability recommendations arising from the Burt Commission on Accountability. These updates include the relevant Minister being provided with the legislative authority to direct the board of a statutory authority in relation to the general policies of Government and to have access to information relative to the decisions made by a board. This authority will not, however, extend to custodial matters, including the presentation of artistic and cultural assets, acquisition, disposal, preservation and research. Other changes that will result from the Cabinet Decision are:

• Each statutory authority will receive funding through the Department of Culture and the Arts, which will be allocated the Parliamentary appropriation for the Culture and the Arts Portfolio. The funding will be accompanied by a resource agreement between the Minister and the Board specifying the outputs or services to be delivered by the statutory authority and the performance targets to be met. Funding for each agency will be specified in the Budget Papers of the Department of Culture and the Arts under a separate output for each agency.
• The Chief Executive of each statutory authority will be appointed by the Minister for Public Sector Management and be accountable for performance to the Board. There will be no line of accountability to the Director General of the Department of Culture and the Arts.
• The Culture and the Arts portfolio is a coalition of arts and culture agencies of Government, each with its own specific purpose and objectives. Common to all is accountability for the delivery of Government policy in relation to culture and arts. In addition to its arts development (ArtsWA) and state records (State Records Office) functions, the role of the Department will be to coordinate the portfolio agencies with respect to Government policy and to act as the point of contact with the Minister. It will also:
• develop culture and the arts policy for the State and lead implementation through portfolio agencies;
• negotiate, on behalf of the portfolio, the provision of resources to implement culture and arts policy for the State;
• foster a cooperative working environment and effective working relationships; and
• advocate the value and importance of the arts for the Government, community and the economy.
• Consistent with the findings of the Royal Commission into the Commercial Activities of Government, the Director General of the Department of Culture and the Arts will cease to be an ex-officio member of the Board of each statutory authority, but will be entitled to attend any meeting of the Board and to take part in the consideration and discussion of any matter before a meeting, but not be able to vote on any matter. 

The changes, with the exception of the provision of corporate services and the fulfilment of the role of the Department of Culture and the Arts, will require changes to the legislation of each statutory authority, the timing of which shall be determined by the legislative priority assigned by the Legislation Standing Committee of Cabinet.