Select Committee on Culture, Media and Sport Minutes of Evidence


Examination of witnesses (Questions 180 - 199)

TUESDAY 18 APRIL 2000

MR JAMES EDE and MS JOANNA VAN DER LANDE

  180. If you believe Scotland Yard, it is the second largest business in the world after drugs and arms. You dispute that?
  (Ms van der Lande) We disagree. We dispute that. We would all be very rich if that were the case.
  (Mr Ede) What I would like to know is where is this material going, the classical and pre-classical antiquities here. We have done surveys of what the size of the market is which show that the worldwide market might be £200 million. Where are these other billions of pounds worth of objects going? Do we believe in the idea of mad millionaires gloating over stuff in their basements? One of the functions of having an open legitimate market is things that are stolen sooner or later always come to the surface, always. This stuff is not coming to the surface at a level of £3 billion a year. Where is it going and where is it coming from? The Guardian suggested at one point £3 billion had been stolen from Saqqara. Has somebody nicked a pyramid? Nobody has produced any evidence to support these figures whatsoever.

Chairman

  181. Could I just intervene in Mr Wyatt's questioning to say that we had a meeting a few days ago with the appropriate people at New Scotland Yard, and far from being the old-fashioned 1930s image of Constable Plod these are extremely sophisticated, knowledgeable people who certainly impressed the members of the Committee who met them. These people take this trade very seriously and they do say it is the second largest illicit trade in the world. They do say the trade is now being used by drug dealers for money laundering. They dismiss the notion which you mention of this trade being motivated by gloating billionaires with stuff put away in a vault. They say it is a very widespread trade and I take what they say very seriously indeed. I think they are reputable and impressive public servants.
  (Ms van der Lande) So do we.
  (Mr Ede) It is very easy to say there are billions. I am saying there are not. I am saying look at the size of the trade. Look at the auctions. Look at what is being bought and sold on the open market. That will give you some idea. I am looking at the figures. It is very easy to say there are billions of pounds shifting around the world annually illegally. I am saying where is it? Clearly there is a problem and an international database is clearly required particularly with public monuments on it and that would solve a huge quantity of problems. The archaeological monuments of South East Asia, for example, could easily be entered on such a database and then there would not be a market for that because people do not want to collect—

Derek Wyatt

  182. Who would take the lead in that?
  (Ms van der Lande) We would be happy to.

Chairman

  183. What about things which are exported from countries against the laws of those countries which are not alleged to be stolen but exported in violation of the laws of the country of origin?
  (Mr Ede) We deplore that but we would ask the Government—

  184. Would you trade in it?
  (Mr Ede) No. I have answered that already. We do not buy these things. I would ask the Government to attempt to put pressure on our partners particularly in the EU, which is supposed to be an open market, to abide by Article 28 and allow proper, controlled open trade in goods which are legally owned by private individuals and not simply put a blanket ban on everything any more than we should have a blanket ban on Georgian candle sticks. Why should we? Do we agree with that?

Derek Wyatt

  185. Just lastly, as a Government we have not taken the UNESCO and UNIDROIT Conventions seriously. Why do you think this is?
  (Mr Ede) These are very complicated legal issues and I am not a lawyer. I was at the UNIDROIT conference in Rome. We were the only association invited to go. It was clear that the thing was cobbled together at the last minute and it is not a very good piece of law. I think that is why the Government's own lawyers have rejected it. I think that is the answer but I am sure there are people giving evidence today who can give a much better answer than I can. But the Government's own lawyers have looked at it.

Mrs Organ

  186. I understand your dilemma. You are saying that the illicit trade is not as great as we have been told by many others before today and you have said that people do not want to buy things that are stolen and that you as a dealer do not want to handle them, but it is going on. Are you saying, therefore, that there are other than the major auction houses and the ten major dealers other alternative fences going on acting as dealers and then suddenly it percolates into the legitimate trade?
  (Mr Ede) We are saying that clearly there is a problem. We are pointing to the level of legitimate trade in this country as being worth no more than £30 million a year. We are saying if there was a huge volume of classical and pre-classical antiquities coming through London these would be appearing in the legitimate figures sooner or later. There is a problem but things come to the surface. It is quite clear they always do. So what we are saying is we do not believe it is a parallel trade which is entirely illegitimate which never sees the light of day.

  187. It eventually has to surface out on to the open market for it to gain its value.
  (Mr Ede) That is certainly true.

  188. So at some stage there has to be an interface between the illicit trade and dealers and purchasers.
  (Mr Ede) There will be pieces on the market illegally exported from the countries of origin. I think that is clear. We think the reason for this is the extremely draconian laws which seek to block everything. We would like to see them liberalise those laws so that objects which are not of national importance and which are legitimately owned could freely circulate.

  189. If we liberalise the laws of countries like Italy, what is going to happen to your market? We are going to have a flood of Etruscan vases, Greek vases, all the stuff that they have got in their warehouses and their storerooms. What is going to happen to your market?
  (Mr Ede) It is going to open a huge market to me.
  (Ms van der Lande) I think it is going to make people a lot more confident.
  (Mr Ede) There is a desire to own them and Italy is potentially one of our greatest markets of all.
  (Ms van der Lande) We do have Italians who buy from us.

  190. In the basic economics of supply and demand if you open up and liberalise the market what is going to happen to your trade in London?
  (Ms van der Lande) I think it will be a lot more fun.
  (Mr Ede) I think there will be more dealers, more collectors. It is clear that collectors like to collect things they can collect. They do not want to collect things they only see once every ten years. I think it would increase the trade and an open, well organised trade could flourish in London as it did in the 19th century.

  191. If there are more dealers and it is a well organised trade, it is obvious up to now that self-policing of the trade is not acting in the best interests of the consumers, if you like. If it went that way taking your argument forward that we will be liberalising the market, more stuff on the market and greater open trade, would you not think there is a need for regulation of dealers and licensing?
  (Mr Ede) I think there is a need for licensing. One of the inaccuracies put forward the other day was the suggestion there should be a threshold of £500 to £1,000 by Dr Brodie. He does not seem to be aware that there is already a zero threshold. We would love a £500 threshold but the Italians blocked it.
  (Ms van der Lande) Are you referring to the export licences or the licensing of dealers.

  192. Licensing and statutory regulation of dealers.
  (Mr Ede) If Parliament decides that all dealers in secondhand goods have to be licensed, so be it.

  193. You would not think it was a bad idea.
  (Ms van der Lande) The practicalities of it might take some getting your head around because I think policing that would be a very difficult task.
  (Mr Ede) It is not only that. It is very expensive. We are already bound under by a flood of regulations. We have the European Directive. Incidentally, since that was introduced (and it was very draconian in that it does allow source countries to claim goods back) in 1993, Italy has not made one single claim under European law. I would like to make that plain. We should try to see how the existing ones are working. It is another level of bureaucracy. We have already got import VAT. It is not much fun being an art dealer.

Chairman

  194. Why do you stay in the trade?
  (Mr Ede) Because I love it, because I have been doing it and because I refuse to be driven out.

Mrs Organ

  195. If you want to behave absolutely properly for yourself as a dealer and for your customers and whatever, how useful is the Art Loss Register at present as a source of information on theft and illegal export?
  (Mr Ede) I believe the Art Loss Register is a good thing and the International Dealers Association, which I am also involved in, was the first association to require its members to check any goods it had bought with the ALR.
  (Ms van der Lande) All the auction catalogues are scanned by the ALR. Their problem and the source countries' problem is providing the information more effectively and efficiently.
  (Mr Ede) A proper international database.
  (Ms van der Lande) Whatever happens, there needs to be more international co-operation. It cannot proceed without that happening, I do not believe.

  196. So you need more independent, authoritative help with problems.
  (Mr Ede) With an air of co-operation between the different parties involved, the different police forces, the international ones providing information when requested.

  197. Everybody is interested, are they not, in keeping the value of their goods to have provenance with them. It does assist it because museums now are reluctant to purchase antiquities without proof, but there must be a large market of people that are prepared to buy goods that are not provenanced.
  (Mr Ede) That depends how large you regard the scale of the problem. There is a problem, we accept that, and it needs to be addressed, but it is not on the scale that has been suggested. I think we have produced the figures.
  (Ms van der Lande) The question of provenance again goes back to the point what do you mean by provenance. When something has a piece of paper with it or catalogue in which that piece has appeared, is that provenance or would you be prepared to accept what we have said about the fact that many thousands of objects are legitimately on the market but do not have any paperwork attached to them for very legitimate reasons.

  198. The oldest thing I have ever purchased in my life was a cottage in Somerset that went back to the 12th century. It was probably the most expensive thing I ever bought in my life, but of course the advantage of that is that I did have the deeds of the house that went right back to Medieval times and then before that I could trace it back in local history in the parish records.
  (Mr Ede) Immoveable objects are much easier. You have to remember that the majority of antiquities were made to be traded. Most Greek vases are found in Italy because that is where the market was in antiquity. These things move around. Cottages, happily, unless you happen to be a cliff top, do not.

  Mrs Organ: I take your point on that one.

Chairman

  199. We have got two more people to ask questions and I have got yet another thing I want to ask before them. You keep on saying that the essence and value of illicit trade are vastly exaggerated, but a story in The Guardian—and anybody can dismiss a story in The Guardian and highly understandably too—states that the police say that this is a very big trade and the police are trying to combat it. And the British police, let alone police we saw in two other countries, one cannot dismiss.
  (Ms van der Lande) We are not dismissing them.


 
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