The Australian Labour government elected in 1972 (and sacked in highly controversial circumstances by the Governor-General in 1975) instituted under the premiership of Gough Whitlam a policy of greatly increased subsidy for the arts. But this was succeeded by a period of neglect, culminating in a drastic policy of cutbacks in 1981; and the election of a new Labour government in 1983 thus coincided with a major debate over both the nature and the distribution of arts subsidy, which has resulted in a wider spread of funding for culturally diverse forms of theatre. Malcolm Blaylock works both as director of one of the new community-based companies. Junction Theatre, and as a member of the federal funding body, the Theatre Board of the Australia Council: he talked to Graham Ley about both aspects of his work, and the background to the present funding policy.