Arts Council England (ACE) chair Dame Liz Forgan has underlined her faith in the future of the organisation and its new funding approach.

In a speech to be delivered to the State of the Arts conference today (10 February), Forgan will tell delegates that the National Portfolio system will ensure the process is transparent. The new funding structure will replace the Regularly Funded Organisations system from April 2012, with 1,340 groups submitting applications to be part of the new portfolio.

Forgan will also state the importance of art to the country, labelling the sector as "precious a resource as North Sea oil or the coalfields". "We have been entirely open in our guidance about what will shape these [funding] decisions. Everyone knows what we are looking for and we know exactly what we're doing.

"This time the process is transparent. I hope that the criteria on which decisions will be made are equally clear. And I hope that they will be respected by artists and arts organisations because the process of formulating them has been open and collaborative."