Memorandum submitted by Arts Council England
1. Arts Council England welcomes the Select
Committee inquiry into the market for art. As the national arts
development agency, responsible for developing and implementing
arts policy and funding on behalf of the Department for Culture,
Media and Sport, and making strategic use of both National Lottery
and Treasury grant-in-aid funding, we advocate for the transforming
power of the arts and aim to place the arts at the heart of our
national life.
2. The art market is a complex environment,
but one that benefits from the positive effects of direct and
proportional intervention. Since its inception, Arts Council England
has been engaged with the market to the benefit of artists and
audiences. We put the artist at the centre of our activities and
overall we make a significant contribution to the growth of the
economy for artists. We have been working on a national and regional
level and we intend to continue these efforts.
3. This consultation response will centre
on the contemporary art market, which includes the broad range
of contemporary visual arts practices: painting, sculpture, crafts,
photography, new media art, artists' film and video, live art
and work which crosses over design and architecture. We have conducted
a significant level of research into the market, and copies of
key reports are enclosed for the Committee's interest.
OVERVIEW
4. The art market is a broad ecology that
includes the processes by which works of art are commissioned,
researched, produced, promoted, presented, bought and sold and
how creativity is converted into commercial value. This therefore
includes public galleries and private collections that have a
significant impact on the value of art and directly effect how
available it is to wider audiences. The commercial market is not
restricted to the first sale of a work of art. The secondary market
is included where a work of art is sold for a second or subsequent
time, primarily through an auction house, for commercial agents,
dealers, private collectors and galleries.
5. There are many different players in the
market, each with their own unique relationship with the artist.
Galleries and collections, both public and private, auction houses,
dealers, agents, art fairs, public and private commissioning agents
and collectors, art schools and open studios all have an impact
on how an artist achieves peer recognition and professional success.
6. Visual art is a significant contributor
to the UK economy and the art market is currently undergoing a
period of unprecedented expansion, to the extent that London is
the largest market in Europe and second largest in the world after
New York. The total sales for the United Kingdom in 1998 were
£3,287 million or
4,765.1 million, representing over 60% of the European
Union art trade[28]Two
Arts Council England reports provide further detail. Taste Buds[29]estimated
that the value of sales through contemporary commercial galleries
and open studios in England was worth £354.5 million in 2003,
while Market Matters[30]stated
that the international sales of London based commercial galleries
and agents are likely to at least double this figure. Further
analysis of market sales suggests that the total market for original
craft is £883 million.[31]
Our submission will provide more detail about the work of Arts
Council England to develop the economy for artists and the market
for contemporary art, such as Own Art, the new scheme to enable
the public in England to purchase art.
7. There is a longstanding relationship
between the public and commercial sectors within the art market.
The roles of publicly funded and privately owned galleries have
changed as public galleries need to raise more income through
commercial activities and private galleries expand their public
presence and engage with wider audiences. Arts Council England
supports a variety of revenue streams in the wider market place
for art. Our regularly funded galleries and organisations generate
income through associated services such as catering, corporate
facilities, retail units and cinema spaces that contribute to
the overall economic health of the art market. Our investment
directly supports sales of catalogues for single and touring exhibitions,
sales of prints and original limited editions, especially in photography.
We are investing in professional development with specific focus
on commercial franchises, catering services and corporate hires,
and marketing.
8. Artists have to negotiate complex relationships
to showcase their art, in order to facilitate sales and acquire
commissions. Many artists work outside the gallery system providing
services and projects that put them outside the traditional art
market. One examples of this is our Creative Partnerships scheme
(see below), which provides employment for visual artists and
crafts makers.
9. Artists need to achieve a level of critical
appraisal for their work to achieve a market value. Because of
the inter-related aspects of the market, each part has a role
to play in this validation process. Networks of art world professionals,
including academics, curators, dealers, critics, artists and buyers,
provide advocacy and endorsement for artists' work through exhibition,
critical appraisal and private and public commissions and purchase.
10. There are no definitive numbers of artists
living in England. However, the Labour Force Survey estimates
that, in 2000, there were approximately 148,700 visual artists,
including commercial artists and graphic designers, in the UK[32]Of
these, 52.4% were categorised as employed and 47.5% as self-employed.
A much smaller proportion of this total figure is professional
fine artists.
11. It is difficult to quantify earnings
for visual artists because data is often based only on employees
and does not include self-employed people. However, the New Earnings
Survey shows that average gross weekly earnings for visual artists
in 2000 was £401 and for glass and ceramics makers £329[33]With
the exception of information officers (average gross weekly wage
of £377) these were the lowest average earnings for cultural
occupations. Research in 2004 by Newcastle University, commissioned
by a-n The Artists Information Company and Arts Council England,
has highlighted that many artists' earnings are substantially
lower than people in comparable professions such as teachers,
who have similar skills and levels of education.
12. The Labour Force Survey data does not
properly reflect the working life of an artist. Artists have to
spend a significant proportion of time on research and development,
which is rarely paid for, and they are therefore receiving no
income for long stretches of time. As a result, an artist's career
is often characterised by multiple job holding, involving short-term
contracts and under-employment. This does have benefits because
many artists will use these periods of time to undertake teaching,
outreach and educational work. Through this work artists are able
to pass on their skills and experience to new and emerging artists.
Without this input back into the sector, new entrants would not
benefit from their experience and guidance. The significant reduction
in part-time teaching opportunities in the Higher Education sector
represents a serious loss of income for many artists and of valued
mentoring for young artists.
SPONSORSHIP OF
THE ART
MARKET
13. The role of Arts Council England in
the art market is to create conditions within which artists can
produce work and develop their careers. We support the infrastructure
of venues and publications for the representation and distribution
of artists' work to widen audiences. We support a portfolio of
magazines and publications that underpin critical peer review
and support the market through review and advertising. Arts Council
England has always been closely associated with the commercial
sector through its former role as a direct provider of exhibitions
and continues through its funded organisations to have productive
relationships with many of the most important dealers and artists
agents both in the UK and abroad. This involvement ensures increased
representation of UK artists abroad and on the international art
circuit. This in turn results in increased sales, commissions
and profiling of the UK art scene and the growth of the art economy.
14. Arts Council England fully acknowledges
the financial position of many artists and has taken steps to
improve their economic status. In addition to the research into
artists' earnings and career paths[34]we
are implementing a national framework plan for visual artists.
This includes prioritising artists' workspaces in our Arts Lottery
Capital Programme and increasing revenue support to artist run
spaces and to national and regional artists' agencies, which give
professional development advice and information. We recognise
the close links between the public and commercial sectors and
have identified problems that need addressing. How the market
operates has a direct impact on how our policies will function
and how our investment in artists will be used. We therefore have
a direct interest in the commercial sector.
15. The economy for the presentation and
distribution of work by visual artists is the focus of a major
sectoral review we are undertaking this year. This will map the
venues and organisations that commission and exhibit contemporary
art. The review will examine employment issues, international
relationships and crossover with the heritage and private sectors,
including the commercial galleries and agents. This will inform
all our policies for the visual arts sector and the development
of a national strategy for the contemporary visual arts. As with
the review for theatre, this will underpin our role in the sector.
16. The Arts Council England Collection
of modern and contemporary British art directly supports the market.
This collection began with the foundation of the Arts Council
of Great Britain in 1946. Since then, over 7,000 works have been
acquired from artists and commercial galleries and the collection
is now the largest national loan collection of modern and contemporary
art in the world, and the largest loan collection of British contemporary
art. It is highly regarded for its quality and range. The collection,
managed and toured by the Hayward Gallery, has an annual budget
of £150,000 and concentrates on younger emerging artists,
although it does occasionally acquire an "outstanding work
by a mature artist". The collection is lent to over 100 venues
including regional galleries and museums, libraries and hospitals
and to exhibitions in the UK and abroad.
17. Touring is an important aspect of art
reaching people. Grants for national touring have increased significantly,
and far more work of better quality has been able to reach more
people in this country and abroad. Over £6 million was allocated
in 2000 to 2004, for over 200 touring visual arts exhibitions
and projects. Of 88 visual arts organisations in our survey of
regularly funded organisations, 39 (44%) carried out touring in
2001-02[35]For
example, in 2002-03 the Hayward Gallery lent 33 works from the
Arts Council Collection to the British Council's major European
touring exhibition Blast to Frieze and loans were made in 2004
to a major exhibition of British sculpture in Tehran.
18. The Hayward Gallery is core funded by
the Arts Council and is the largest touring provider in the UK
directly bringing contemporary art to the widest possible audiences
and collaborating with regional museums and galleries. The Hayward
Gallery tours 30 shows annually reaching audiences of 2 million
and every five years organises the most important regional showcase
for new British art. The next show will open at the Baltic in
September 2005. The Hayward Gallery also toured the exhibition
of "At Home with Art"—a scheme where ordinary
household objects were designed by artists, manufactured and sold
through Homebase stores throughout the UK. Our New Audiences Programme
funded this initiative.
19. However, as the Committee will be aware
from our recent evidence to its theatre inquiry Arts Council England
has some concerns about the likely impact of the Spending Review
2004 on our long-term strategies for the arts. Cash standstill
in our grant-in-aid affects all of the arts, including visual
arts and crafts, and creates real constraints on our ability to
support artists. The implementation of our strategy for visual
arts will be dependent on our financial capability to implement,
and sustain, real change.
20. We need to sustain the work we have
done over the last 10 years nurturing a more sympathetic environment
for artists in which they can improve earnings, gain easier access
to quality work spaces, receive greater opportunities to show
their work, to travel and improve their business and critical
skills through a range of peer review and advisory services. While
we have undertaken a significant number of initiatives in these
areas, we are only at the beginning of the process.
21. In addition, as outlined below, National
Lottery capital funding has had a real impact on the ability of
artists to work through investment in studio spaces, and we would
want to ensure that it could continue to provide real support
where it is needed. However, until we are reconfirmed as a lottery
distributor, we are unable to give any firm commitments. In addition,
the decline in lottery funds is likely to undermine potential
opportunities for development.
WAYS OF
SUPPORTING AND
ENCOURAGING LIVING
ARTISTS AND
THE PRODUCTION
OF NEW
WORK
Arts Council England support for living artists
and new work
22. Arts Council England support for living
artists and the production of new work are important priorities.
Our Grants for the Arts funding 2000-04 has allocated £6
million to 852 grants to individual visual artists for animation,
graphic design, new media to fine art, photography, crafts and
live arts. This represented 50% of the grants made under this
funding stream.[36]
The overall spend on visual arts organisations through grants
for the arts was £14.1 million. Visual arts spend was £19.9
million of a total spend of £51 million. In addition, 73
of our regularly funded organisations commissioned 854 works from
1,217 individual visual artists in 2002-03[37]
23. Arts Council England estimates that
the total expenditure for art commissions for its first Capital
Programme was nearly £70 million by the time of completion
of most projects in 2004. In 1999, an impact study found that
90% of respondents felt that their project was a success.[38]
Over 90% of those whose projects were at or nearing completion
said that the commissioning process had resulted in value for
money. Over 95% of projects said that the art is accessible to
a general audience. The same study has figures to account for
audiences for public art of between 5.1 million and 6.6 million
people in an average week at the time of the survey.
24. Over £2 million was allocated to
visual artists development initiatives in 2004-05.[39]
This compares with £450,000 in 1999. These figures demonstrate
major increases in commissioning and artists development activity
through the main strands of Arts Council England funds in recent
years. The returns on this investment are now being seen countrywide,
with improving and new relationships between artists, local authority
planners, developers and other regeneration agencies. Best practice
in commission management has also resulted through exemplar organisations
such as Artangel, IXIA (the lead national public art body), Locus
Plus and Modus Operandi.
Art fairs
25. Arts Council England has also supported
art fairs. The Hayward Gallery showed the Arts Council Collection
at the early London Art Fairs to support young galleries and to
encourage new buyers for contemporary art. We also funded regional
museum curators to attend. Arts fairs are not just about selling
art, but provide a major opportunity for showcasing work, professional
networking and for collectors to meet each other. Sales have increased
every year. For example, the annual London art fair in Islington
made £12 million worth of sales in 2003. The new international
Frieze Art Fair had unprecedented media coverage, 42,000 visitors—a
50% increase on the first year's figures and £26 million
sales. Arts Council England funded Frieze magazine, which incubated
this major new Fair and supported 10 new commissions by artists
and education and debates for viewers and collectors to the Fair.
Contemporary visual art outside London
26. The annual art fair organised by the
Contemporary Art Society (CAS) called ARTFutures, features work
by recent graduates. CAS is a private charity founded in 1910
and part-funded by Arts Council England. It raises and uses funds
to purchase and give works of art to 90 museum collections across
the UK.
27. In 1997, CAS secured a major Arts Council
lottery award of £2.5 million to develop the contemporary
art collections of 15 regional museums and galleries across England.
The Special Collections Scheme was initiated as a result and some
500 works of contemporary art and craft have since been purchased
by the member collections. Also, as a result, curators travelled
to see work and built their professional networks and expertise.
This scheme was phased over three years and came to completion
in 2004, and despite our efforts and that of CAS, future funding
for the scheme has not been secured.
28. Arts Council England supports CAS and
Engage, the gallery education agency, as part of our strategy
to grow audience opportunities for contemporary art in the regions.
This must be matched by ensuring museums and galleries outside
London have the opportunity to acquire and showcase contemporary
art. At present, the public acquisition capabilities of our museums
and galleries and the professional development of staff are severely
limited by their budgets. Arts Council England is investigating
the possibility of seed funding for commercial galleries in the
regions, but the private sector needs strong regional public collections
to develop public confidence and engagement with the work of living
artists. It is essential for public collections to grow in a steady
and considered manner in order to create a healthy environment
for artists and audiences in the regions.
29. The introduction of income tax relief
on gifts to public institutions during a person's lifetime such
as the Gift Aid In Kind scheme proposed by the National Arts Collection
Fund, would assist both the market and artists. Similar systems
exist in the USA, Australia, Canada and the Republic of Ireland.
The UK is the only country to levy full 17.5% VAT on sales of
work by living artists, which places all British contemporary
art dealers who operate in the international context at a disadvantage.
Agencies
30. The work of CAS, Engage and the Visual
Art and Galleries Association, which is a lobbying body for the
museums and galleries infrastructure, is complemented by national
and regional artists agencies providing professional development
advice and information, which are also funded the Arts Council.
Details of these agencies are available in the appendix.
Developing public interest in contemporary art
31. Engaging a greater number of people
in art is an important priority for Arts Council England. Evidence
suggests that there is a significant public market for art and
through further financial intervention the arts can reach more
people. Growth and confidence are important for the sector if
it is to embrace its artistic potential and engage a wider audience.
There are already 4.9 million existing owners of art, with a further
5.9 million people identified as potential buyers of original
work. The Making it to Market report, soon to be published, also
suggests that 11.3 million people, or 28% of the population of
England, are interested in buying original craft. Of that total
market, 7 million (60%) have already bought original crafts and
the remaining 4.3 million aspire to do so. In 2003, 6% of adults
in England bought an original work of art, while 11% bought an
original piece of handmade craft. In addition, between 2001 and
2003, the proportion of adults visiting galleries increased from
19% to 22%. This is a significant untapped market, and Arts Council
England has been working to encourage those potential buyers to
buy.
32. Own Art: To enable more people to enter
the art market, Arts Council England launched "Own Art"
in November 2004. This initiative was preceded by a pilot scheme
in 2003, in partnership with HFC Bank, which replaced eight separate
regional arts purchase schemes. The aim of Own Art is to strengthen
the visual arts economy by making it more affordable for the public
to buy original contemporary art and craft, through point of sale
interest free loans. It is also an important method by which the
market can be opened up to a wider range of people by demystifying
the process of buying art. Anecdotal evidence suggests that the
public can be reluctant to buy original works of art because they
are concerned about issues of taste and whether they are sufficiently
"high-brow" to appreciate it. Own Art aims to make the
public more comfortable about buying art, and to regard it in
the same light as making other significant purchases.
33. The Own Art scheme is currently available
through regional 250 galleries and outlets, the majority of which
are small and often linked to subsidised galleries or local authorities.
Galleries selected for the scheme sell contemporary work by living
artists and are not at the expensive end of art market. To date,
membership of the scheme has been focused on the regions where
the commercial infrastructure is not well developed and where
a loan will go further. The scheme is to be expanded during 2005
to increase the number of outlets, including selected art colleges
in London.
Contemporary art in schools
34. Creative Partnerships is another initiative
to engage new audiences. Creative Partnerships provide children
across England with the opportunity to develop creativity in learning
and to take part in cultural activities of the highest quality.
Creative Partnerships works in schools in areas of high deprivation
to foster sustainable partnerships between schools and the widest
possible range of cultural and creative professionals and organisations.
Through this work, many children who have not had the opportunity
to access art before do so for the first time in a supported way.
Importantly, Creative Partnerships are introducing children to
contemporary art at a time when research suggests that existing
opportunities for access are limited.
35. In 2004, Arts Council England in association
with the Tate, commissioned research by the National Foundation
for Educational Research, which published "School Art: what's
in it?". This research raises fundamental questions about
the art curriculum and whether contemporary art should be a more
prominent feature of school art. The introduction of art to children
at a young age can broaden their horizons, and with encouragement,
ensures that they continue to enjoy art as they grow up.
Studio Spaces
36. Studio spaces are vital because artists
need somewhere affordable and sustainable to work. The provision
of artists' workspace is a priority of the Arts Capital Programme.
To date, we have invested approximately £69 million[40]through
capital funds, but there remains much to do. The infrastructure,
while undoubtedly stronger than 10 years ago, remains fragile.
Many artists have difficulties in finding and affording workspaces
with any degree of permanence or reliability. Artists have helped
inner city regeneration but ultimately, like in Hoxton, their
presence has increased property prices and forced them out. We
are also assessing the likely impact of the Charities Bill, which
may affect artists' studios' charitable status through its definition
of studio space as office space.
37. Above all, greater investment and stronger
partnerships will be needed to nurture the nascent studios infrastructure.
More artists and makers' workspaces or creative micro-businesses
need to be able to secure their futures through acquiring freehold
or long term leases; improved access for Black Minority Ethnic
and disabled artists is required; viable creative finance schemes
should be made available and more support for artists workspaces
to host international artists. An independent, national body to
represent visual artists studios would give a consistent lobbying
voice to the sector.
38. Open studios, where artists group together
to show their work, have become a cultural attraction. In thirty-two
events across England in 2001, 3,000 artists attracted 250,000
visitors and made over £1.5 million in sales. Despite such
impressive statistics, the scale, value and potential of open
studios are generally under appreciated. Open studios events are
a celebration of creativity amongst the artistic grass roots.
They bring many more artists to a larger and wider public at a
time when art and creativity are assuming a new importance within
the economy. A study in 2002 commissioned by Arts Council England,
Yorkshire, analysed 32 open studios events. It found that:
— Events had raised artists' profiles
and broadened and increased popular interest in art.
— Levels of artists' professionalism
had gone up.
— Events wanted to be part of the bigger
regeneration picture. They recognised the potential to further
develop audiences and activities.
— They were eager to learn from, and
do things together with, other events and partners.
— Open studios were seen as a strong
brand.
— Their informal nature helped to convert
browsers into buyers and bring less confident artists into action.
Based on research commissioned through ACME[41]we
are developing a national studios action plan to strengthen studio
infrastructure.
Regeneration
39. Co-operative arrangements, as seen in
Leeds and Hackney, where several artists have come together to
hire a work space, have enabled the effective delivery of services,
skills support and business development advice. One example is
Deptford, in Lewisham, South East London. High levels of deprivation
meant it was difficult to see what the area could offer, but with
Goldsmiths College and many artists' studios in the neighbourhood,
it is a culturally rich area. In 1998 Deptford X was created and
became one of London's key grass roots led visual art events.
In 2002, 314 artists took part, filling over 50,000 square feet
of exhibition space with a wide variety of art. Audiences for
this event have grown from 4,000 to more than 7,000 in 2004. Public
art commissions, such as a banner project on the exterior of Lewisham
College, made it visible to passing audiences. The increased profile
for this event has helped sales for participating artists. These
changes are similar to experiences in Hoxton (above) and it is
likely that over time, increased property prices arising from
regeneration of the area could force artists out.
Tax and social security
40. Arts Council England has conducted research
into artists' working lives and a number of significant issues
have been highlighted that we are investigating further. There
is a need for increased flexibility both in reporting income and
employment status. Visual artists should be entitled to claim
dual status, in the same way performers can. Dual status allows
a worker to be identified as an employee for National Insurance,
and as self-employed for tax. By doing so, they are able to use
tax and social security benefits make the inevitable periods of
unemployment bearable. Artists do not expect the state to support
them, but are not helped by the tax and social security system.
A more appropriate framework, which recognised the pattern of
artists' working lives, would support artists when necessary and
allow them the freedom to work without becoming reliant on state
aid.
41. Other related recommendations for change
include improvements in the understanding within the Department
for Work and Pensions and the Inland Revenue of the pattern of
an artists working life. Currently there is a great deal of inconsistency
in the application of procedures between tax and benefit offices,
which could be significantly improved if applied in a more coherent
and sympathetic way. To aid this, it would be helpful if "artist"
were a recognised profession in the welfare system. A useful model
is the approach taken by the Australian Tax Office, which has
produced clear guidelines in relation to income tax entitlement.
After an extensive lobby by artists' organisations the office
now distinguishes between professional artists and those who are
simply making art for their own enjoyment.
42. Currently the social welfare system
does not recognise "artist" as an employment category,
as a result the social and economic diversity of entrants into
the arts sector is being limited. Younger artists report that
they are unable to gain work experience relevant to their chosen
career and claim benefits as they develop the necessary skills.
By recognising artists as an employment category and in particular
by extending the New Deal (see below) to cover all artists, the
Government can make an important step to broadening the range
of people that can develop their careers in the arts. There is
a therefore a clear need for the recognition by the welfare system
of artist as a profession.
43. One of the great strengths of the New
Deal is that it is flexible to the changing nature of the labour
market and caters to the needs of the individual. Musicians, who
are already part of the New Deal, are able to demonstrate the
benefits of the scheme. For example, like most artists, the majority
of working musicians are self-employed and under the New Deal
for Musicians, individuals can get the chance to test whether
they could earn a living as a musician while they stay on New
Deal. All artists would benefit from this flexibility and specialised
focus.
International Fellowship Programme
44. International opportunities have a critical
impact on artists' professional success. Arts Council England
has developed an International Artists Fellowships programme to
award fellowships to high achieving artists for performance and
practice-based research within different cultural contexts. The
programme has so far provided 175 fellowships in 30 countries
within 72 different host institutes. 83 of these fellowships were
visual artists including those specialising in architecture, craft,
new media, photography, moving image and live art. An external
evaluation of the pilot phase revealed clear benefits: it encourages
artistic exploration and professional development; creates strategic
relationships with key international institutions and enriches
discourse internationally and within the UK art forms. Artists
are clear themselves that their careers changed as a result of
this opportunity. We are developing a network of hosts across
the UK to receive international artists. The programme is a leading
initiative, supporting artists' international exchange of ideas,
skills and sales.
Higher Education and Professional Development
45. Our International Programme has developed
strong partnerships with Higher Education institutions in the
UK and abroad, which provide hosts in research environments allowing
artists to develop their work. Higher education institutions are
an important part of the market economy. They are expanding provision
for postgraduate professional development. For example, Next Moves,
a partnership with Crafts Council and Arts Council England links
young craft graduates with art colleges. Through the scheme, graduates
gain two years' access to resources and mentoring. Artists' Access
to Art Schools is an Arts Council initiated and funded scheme
to enable thirty artists every year to make use of facilities
in university art departments and schools.
46. Open degree shows give opportunities
for students to showcase their work and gain peer review and provide
access for agents and collectors. They can have a real impact
on future developments in the art market. Arts Council England
has an established and active relationship with the Higher Education
sector, which we are developing especially with regards to the
current sectoral review where we are in partnership with the Council
for Higher Education in Arts and Design looking at the experience
of Black Minority Ethnic students in art education.
SCOPE TO
PROMOTE BEST
PRACTICE IN
THE CONDUCT
OF FINANCIAL
RELATIONSHIPS BETWEEN
ARTISTS AND
ART MARKET
PROFESSIONALS
47. Arts Council England undertook a comprehensive
investigation of the art market in England, Taste Buds, which
has provided a foundation for information about the financial
constraints placed on artists. The research demonstrated that
many artists do not have a clear view of the art market; they
do not understand the interdependencies between public and private
sectors and nearly 60% acknowledged they needed training in marketing.
It is therefore imperative that artists are fully empowered in
their relationships with art market professionals to ensure that
they are able to defend their interests.
48. To help achieve this, we will be jointly
promoting with a-n The Artists Information Company, a toolkit
for calculating professional fees for artists to applicants to
all Arts Council funds. Guidance from a-n suggests that artists
with upwards of 10 years experience should be aiming to earn an
annual salary of £34,299 or more. This means negotiating
a day rate of £250 to £279 a day. An artist with five
years experience should aim to earn £28,194 per annum, a
day rate of between £216 and £244. A newly qualified
artist should aim for £21,090 per annum, a daily rate of
£176 to £204. In addition, we make artists aware of
the role of the Design and Artists Copyright Society (DACS), the
collecting society for fine and commercial artists and photographers.
More artists are benefiting from their Payback Scheme, which distributes
a share of collective licensing revenue for secondary uses of
their artistic works. In 2003, DACS paid £550,000 to artists,
of which 37% of publication rights was paid to fine artists.
49. Arts Council England was involved with
the drafting of the Code of Practice for the Visual Arts. The
National Artists Association originally produced the Code with
Arts Council England funding in 1999. There are two parts to the
code, one for artists and one for organisations looking at principles
of good practice. The Code is now produced and updated annually
by a-n The Artists Information Company and will be a valuable
tool for ensuring information about Droit de Suite (see
below) is clearly disseminated to artists and the art market through
its readership. The Code is based on the daily experience of artists,
commissioners, curators and others with whom artists work, setting
out the principles that underpin good practice, with regularly
updated case studies.
50. Currently, written contracts between
artist and dealers are rare, with around 40-50% commission against
sales. This has its origins in the nature of the market and how
it operates. Much of the artwork exhibited in galleries is not
owned by the gallery. Instead it is on consignment from the artist
to their dealer, and the artist is paid when the dealer is paid.
In return, the dealer is expected to bear the costs of running
the gallery and attending art fairs on the artist's behalf. An
agreed code of practice would help rationalise this in the interests
of both artists and dealers and galleries.
51. We are developing firmer partnerships
with cultural industry bodies to help artists improve their business
skills. Arts Council regional offices are developing links with
recently established Creative & Cultural Skills, the Sector
Skills Council for Advertising, Crafts, Cultural Heritage, Design,
Music, Performing, Literary and Visual arts and Publishing. The
Arts Council initiated and now supports CreativePeople, a virtual
network of organisations supplying training and professional development
information, advice and guidance to existing and aspiring artists
and craft makers. Our regions are establishing specific remits
to facilitate this. For instance at Arts Council England, West
Midlands, a Creative Industries and Workforce Development Officer
directs support in the shape of training and development for artists
with skills and products that are deemed economically viable.
52. Artist Professional Development (APD)
Network, funded by Arts Council England as part of Creative People
programme, is a small but increasingly influential resource for
artists. The APD Network initiated by a-n in July 2001, is a UK-wide
intelligence and exchange forum for organisations that are proactively
developing information, advisory, training and professional development
services for visual and applied artists. Members range from artist-led
organisations to cultural industries bodies and higher education
institutions.
53. Our sectoral review mapping will provide
a national database of galleries, agents, art fairs, and outlets
in England that promote and sell contemporary visual art.
54. One change that would make it easier
to provide guidance to the sector would be the creation of a trade
association for commercial galleries. Arts Council England has
recently commissioned a feasibility study to identify barriers
and the potential for creating such a body. This study, at its
initial stage, is due to be completed in March 2005. We consider
that a trade association of this kind would benefit the sector
immensely, by providing a voice to negotiate and establish its
overall needs, engage with other parts of the market and lobby
for change and funding to develop new markets, especially at international
art fairs. Arts Council England is committed to providing resources
for the establishment of a trade association, should it prove
feasible, but intends this to be time-limited support to establish
its independence.
55. It is anticipated that this trade association
will provide an independent voice for the market to support, and
perhaps challenge, Arts Council England, but more importantly
provide a consistent overview of the market.
FUTURE OPERATION
AND LIKELY
IMPACT OF
EUROPEAN DIRECTIVE
2001/84/EC ON ARTISTS' RESALE
RIGHT (DROIT
DE SUITE)
56. Droit de Suite or resale rights,
will enable visual artists to receive a percentage of the revenue
from the resale of their works in the art market. This Directive
must be implemented in the United Kingdom from 1 January 2006
for living artists and extended to heirs and the estates of the
deceased by 1 January 2012. The Directive allows for the introduction
of royalties on the basis of a sliding scale starting at 4% for
works of art over
3,000 to 0.25% on works worth over
500,000. The rights can be transferred to heirs for
up to 70 years after the artist's death. The rationale behind
Droit de Suite is that artists should participate in the
increasing value of their art. Currently visual artists in the
UK are only protected by copyright.
57. Arts Council England has been concerned
with the impact of Droit de Suite since 1994 and in preparation
for the implementation of the Directive, Arts Council England
commissioned two researchers to look into best practice models.
They reviewed existing models for the collection and distribution
of rights, both domestic and European, and assessed the likely
mechanisms needed to fully implement the Directive.[42]
58. Recommendations focused on making sure
that the legislation and procedures for implementing Droit
de Suite should be as simple as possible. This is necessary
to avoid disruption and confusion amongst art buyers, sellers
and producers. It recommended that one institution in the form
of a collecting society, should carry out the collection and distribution
of rights arising from Droit de Suite, to ensure as efficient
a system as possible. This collecting society should have legal
rights to examine documents relating to sales and there should
be an ongoing evaluation and review of the system.
59. One advantage of the implementation
of the Directive is that it will address concerns that its current
inconsistent application across member states is creating trade
distortions that, together with the varying ways it is administered,
is putting unfair pressure on some member states.
60. However, the research did highlight
a number of drawbacks to the Directive. It is likely to benefit
established artists and estates rather than new and emerging artists,
because the Directive applies to the secondary market and thus
to works of art which have previously been sold. It may discourage
new artistic production. It will place a burden on dealers, who
along with auction houses are likely to pass on the cost of administering
the Directive to the buyer.
61. The research suggested that supporting
a social fund for artists through a levy on re-sales, as in Germany,
would be one way in which emerging artists could directly benefit.
In Germany, after deducting administrative expenses the collecting
society makes two further deductions. The first is used for a
social security bond scheme designed to provide support for "artists
in need". These tend to be elderly artists, who do not have
a pension or artists suffering acute problems or crises. The second
deduction funds a scheme to foster and support contemporary fine
arts through promotions, competitions and exhibitions. However,
we understand that it is likely that this model may not be possible
under Droit de Suite and we would like to see this investigated
further as a separate option.
62. A critical issue to resolve is the inclusion
of artists' film and video or "moving image" work. This
medium is now commonplace in sales transactions and exhibitions
in both the private and public visual arts sectors. Many artists
are in danger of missing out on the resale payment if this medium
is not clearly included in the application of the right in the
UK. The Arts Council will raise this as a central issue in its
response to the forthcoming consultation process run by the Patent
Office.
APPENDIX
A -N
THE ARTISTS
INFORMATION COMPANY
a-n The Artists Information Company reaches
over 17,000 artists monthly. It is the leading voice for artists
in England, publishing a highly regarded monthly magazine and
critical professional advice and information on the business of
being an artist. It provides essential toolkits and models on:
contacts and fees; artists' professional development; toolkits
on setting up studios and a national code of practice aimed at
both artists and employers.
http://www.a-n.co.uk/cgi-bin/db2www.exe/home.d2w/input
VISUAL ASSOCIATIONS
Visual Associations promotes the talent of over
4,000 contemporary United Kingdom artists and makers through 16,000
images of their work. Through a website it champions the work
of these artists and stimulates opportunities for the creation,
presentation and purchase of their work.
www.visualassociations.org/
IXIA
IXIA is the national body for the development
of public art practice. It initiates research, stimulates critical
debate and promotes professional working relationships between
artists and other professions engaged in the delivery and development
of the public realm.
http://www.ixia-info.com/
ARTQUEST
Artquest offers advice and information to professional
visual artists and craftspeople in London through a website, email
and telephone help line, advice sessions, events and initiatives.
With a grant from Arts Council England, Artquest is currently
testing a national legal advisory service for visual artists.
http://www.artquest.org.uk/
February 2005
28 Market Tracking International Company Limited (MTIC)
(2000) The European Art Market 2000, London: The European
Fine Art Foundation (TEFAF). Back
29
Morris, Hargreaves and McIntyre (2004), Taste buds: how to
cultivate the art market: executive summary. London: Arts
Council England. Back
30
Louisa Buck (2004), Market Matters: The Dynamics of the Contemporary
Art Market, Arts Council England. Back
31
Morris, Hargreaves and McIntyre (2005), Making it to Market:
Developing the Market for Contemporary Fine Craft, Arts Council
England-to be published. Back
32
Davies, R. and Lindley, R. (2003) Artists in figures: a statistical
portrait of cultural occupations. London: Arts Council England. Back
33
Davies, R and Lindley, R (2003) Artists in figures: a statistical
portrait of cultural occupations. London: Arts Council England. Back
34
Galloway, Lindley, Davies & Scheilbl, A Balancing Act:
artists' labour markets and the tax and benefit systems, Arts
Council England, 2002. Back
35
Joy, Skinner and Crookenden (2004), A Statistical Survey of
Regularly and Fixed Term Funded Organisations 2001-02, Arts
Council England. Back
36
Jackson, A and Devlin, G, Grants for the arts main evaluation,
Arts Council England 2004. Back
37
Joy, A et al; A statistical survey of regularly funded organisations
2002-03; Arts Council England-to be published. Back
38
Jackson, Evaluation of public art projects funded under the lottery,
Arts Council England 1999. Back
39
Internal managed funds analysis, Arts Council England, February
2005. Back
40
Based on all capital awards to visual arts projects over past
10 years to artists studios/workspaces. Back
41
ACME Studios is undertaking the first comprehensive survey of
studio groups and organisations in England. Their findings will
be published in May 2005. Back
42
McAndrew & Dallas-Conte, Implementing Droit de Suite,
Arts Council England, 2002. Back
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