Memorandum submitted by Rebecca Salter
CONSIGNMENT OF
WORK TO
A GALLERY
BY THE
ARTIST
1. Weaknesses of current system:
For proof of consignment to be legally binding
it should be signed by both parties and in my experience this
is very difficult to achieve. Once work is consigned the artist
retains legal ownership but relinquishes physical possession.
With no right to inspect the gallery's books/records, the artist's
position is vulnerable. It is impossible to know IF the work has
sold, to whom and how much for.
Any of the following can/do occur:
(1a) The work is sold but the artist is
not informed therefore has no idea payment is due. Payment times
can range from months to years. In the meantime the money is essentially
free working capital for the gallery.
(1b) Work on consignment is rented out sometimes
without the knowledge of the artist who presumes the work is being
offered for sale in the gallery. A proportion of the rental fee
is not necessarily paid to the artist.
(1c) Work consigned to the gallery can be
re-consigned (again without the artist's knowledge) to another
gallery—possibly abroad. The first gallery remains liable
but if the second gallery defaults on a sale/does not return the
work, the artist has to try and enforce that liability without
access to the relevant paperwork.
(1d) If the gallery goes out of business,
bailiffs can seize work consigned by artists. Without signed paperwork
it is hard to prove ownership.
(1e) Work can be "lost" by the
gallery and this is frequently presented as a loss the artist
has to bear as part of the business though they have no responsibility
for the loss.
(1f) Galleries can "give" work
away on the grounds that the gift will improve the artist's profile.
2. Pricing and Payment
Galleries generally work on a 50/50 split (sometimes
60/40). Again with no access to information the following can/do
happen:
(2a) With no requirement to disclose the
client invoice to the artist, the gallery can sell for a higher
price than that declared to the artist. The artist has no right
to know the details of the purchaser so cannot keep track of their
work.
(2b) With no idea of if/when a work has
sold, payment terms are meaningless.
(2c) Galleries frequently offer discounts
of 10% and sometimes more without the prior agreement of the artist.
The goodwill engendered accrues primarily to the gallery but the
discount is also taken from the artist's 50%. Without seeing the
invoice, there is no way of knowing if the discount was actually
given.
(2d) The addition of VAT further complicates
the pricing structure. Galleries can sign up for the VAT margin
Scheme (Section 13) and if the artist is not VAT registered it
applies only to the gallery commission. Some galleries opt to
apply VAT to the full price even if the artist is not VAT registered.
Again, without see the invoice there is no way of knowing if the
full VAT was actually paid. As the gallery is effectively an agent,
my understanding is that it only applies to their commission (unless
the artist is also VAT registered)
3. Transparency and Accountability
The fundamental weakness is that the artist
retains ownership but loses physical possession with no guarantee
of payment before the gallery also gives up physical possession.
The artist can end up with neither painting nor payment.
A degree of transparency and accountability
needs to be brought to the business, perhaps based along Fair
Trade lines. Galleries could be required to follow certain procedural
standards with regard to disclosure of paperwork and prompt payment
and only those which conformed would be eligible for public purchase.
The Arts Council scheme (Own Art) could act as a model.
4. Making a Living as an Artist
Part-time employment to subsidise art work.
The severe cuts in part-time art college teaching
dating back to the 1980s have had a marked effect. There are few
regular contracts and expenses are not paid. Payment is based
on the five hours contact time of a typical day's teaching and
travel is not paid. The majority of artists are London-based and
a day's teaching outside London involves the artist paying a peak
rail fare to get there. A 12 hour day pays very little when expenses
have been deducted. If London artists do not travel to regional
colleges, the variety of professional expertise offered to those
students is diminished.
March 2005
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