Last week, the federal arts minister and attorney general Senator George Brandis announced the creation of a new arts funding body, called the National Programme for Excellence in the Arts.

In a surprising budget decision, $110 million has been cut from the Australia Council over the next 4 years to fund the new agency.

Some arts organisations, notably Opera Australia, have backed the move.

But many artists, writers and arts organisations are concerned.

Some are worried that 'excellence' sounds like a vote for the big end of town and that small, experimental groups will miss out.

Others are more troubled by the implication that the minister for the arts will now be deciding who gets funding and are concerned about what this means for freedom of expression.

Senator George Brandis joins us to explain the reasoning behind the Australia Council cuts and the establishment of the National Programme for Excellence in the Arts.