Select Committee on Culture, Media and Sport Minutes of Evidence


Memorandum submitted by the Department for Culture, Media and Sport

I.  INTRODUCTION

  The Department welcomes the Select Committee's interest in the United Kingdom's art market, living artists[53]and the production of new work and can offer the following information about the Government's involvement in this area.

  The Department for Culture, Media and Sport has no formal role in sponsoring the art trade. The Department does, however, undertake an informal role as champion on particular issues that affect the UK's art market. This includes, for example, representations to the European Commission about the financial values at which cultural objects require an export licence under European Union. Other individual issues, relating to the art trade, are taken up by Departments with the relevant policy lead.

II.  AN OVERVIEW OF THE ART MARKET IN THE UK[54]

  UK Market Size: The most recent study of the art market, undertaken in 2001 by the European Fine Art Foundation (a body supported by the British Art Market Federation), indicated that the UK art and antiques market was then worth around £4.2 billion, split roughly 50-50 between auctioneers and dealers. This represented 25% of the global market, with the UK second only in size to the US. In the UK there were 9,500 art dealers and 750 auction houses.

  Employment: The same study found that the market employed 28,000 full time and 9,000 part time staff.

  International Critical Acclaim: The UK art market receives considerable press coverage at home and overseas, and its activities generate significant public interest.

  Growing the Sector: In a flexible global marketplace, in which vendors have considerable freedom to choose the which country in which to sell goods, the UK must remain competitive in terms of price in order to attract works of art to Britain for sale elsewhere.

  The UK market is currently in a strong position in this respect. The international market accounts for around 50% of industry revenues and is therefore vital to the future prosperity of the industry.

  The industry believes that the principal issues which will help determine its position in that market in the future concern the EU harmonisation measures (eg droit de suite, see Question 5) and is lobbying strongly against any measures which could adversely affect its international competitiveness.

1.  WHAT ARE THE MOST SIGNIFICANT INITIATIVES UNDERTAKEN BY THE DCMS TO ENCOURAGE THE DEVELOPMENT OF NEW ARTISTS AND INNOVATIVE ART?

  DCMS funding for the Arts is channelled through the Arts Council England, which operates at arm's length from Government. All organisational and funding decisions are taken free from Ministerial influence.

  DCMS, through Arts Council England (ACE), encourages the development of new artists and innovative art. ACE has a central role in supporting the development of the visual arts. Exchequer funding in the arts has increased from £186 million in 1997-98 to £411 million in 2005-06, a real terms increase of 73%.

  DCMS is particularly committed to enhancing access to opportunities for young people, ensuring they get the opportunity to develop their talents, whether in the visual or other artforms, and promoting lifelong learning and participation. Our overarching strategy for arts education is to identify coherent pathways for young people, whatever their background or financial means, to progress from:

    —  first access to art;

    —  to opportunities to deepen their interest or develop their talent;

    —  to support for the most talented; and

    —  to making a living in the arts.

  Current work under our key priorities for visual art includes:

First access to Visual Arts

  DCMS is investing at least £151 million up to 2008 in the Creative Partnerships (CPs) programme, a national initiative to develop sustainable partnerships between schools and creative and cultural organisations and individuals. There have been 964 visual arts-based projects supported by CPs to date. For example, CPs in Durham/Sunderland run a project called "Creative Spaces" with artist Lothar Götz. Lothar is working with staff and pupils at Westlea Primary School in Sunderland to create an inspiring communal entrance area for the school. Using blocks of brilliant colour and often dividing walls into bands and grids, Lothar devises special colour schemes to accentuate the particular characteristics of the buildings he works with. Lothar Go­tz uses walls as canvases to create "walk-in" three-dimensional abstract paintings, so that when encountering his works one feels to be inside fields of saturated pigment. Each work is conceived specifically for the place for which it is realised, and each is on an architectural scale, rather than that of conventional painting. Go­tz is Senior Lecturer at the University of Sunderland.

  The popular Artsmark scheme, managed by ACE, seeks to recognise schools in England for their arts provision and requires them to dedicate a minimum amount of time per week to art and design and to provide additional out of hours opportunities in art and design/the visual arts. By May 2004, a total of 2,708 primary, secondary and special schools—were Artsmark schools. 27% of all secondary schools are Artsmark schools.

Deepening interest and developing talent

  The Young People's Arts Award provides a means for young people aged 13-25 to increase and sustain their participation and enjoyment in the arts. The Award is currently being piloted by Arts Council England (ACE) in over 100 settings across the country. ACE has allocated £700,000 in 2005-06 to roll out the programme nationally, with further funding to follow;

  There are now 304 Specialist Arts Colleges, many of which will be offering high quality visual arts experiences. They are also having a positive impact on first access to the visual arts in their feeder primary schools.

Support for the most talented

  The national programme for gifted and talented education, led by DfES, is designed to support gifted children and young people aged up to 19 in all schools and colleges throughout England. It provides support for those with ability in a range of different fields, including the artistically talented.

  Support for artistically talented young people is offered at local level through the gifted and talented strands of the Excellence in Cities, Excellence Clusters and Aim Higher—all designed to improve the education of those from relatively disadvantaged backgrounds. At regional level, London Gifted and Talented (part of the London Challenge) is developing support for pupils and teachers across London and this includes provision for the artistically talented. At national level, support and guidance for educators of artistically talented pupils has been provided through the online resource at www.creativegeneration.co.uk[55]and the National Academy for Gifted and Talented Youth are beginning to engage the arts sector more systematically in providing outreach activities for the artistically talented.

Making a living in the arts

  DCMS has been a keen champion and a member of the development group for the Creative and Cultural Industries Sector Skills Council. The new body, Creative & Cultural Skills, is an industry-led organisation which aims to have real influence over the supply of education and skills across the UK.

  It will ensure that employers and individuals have access to high quality education and skills. It will aim to increase the vocational relevance of qualifications on offer and provide students with informed choice on courses and career pathways.

  The National Endowment for Science, Technology and the Arts (NESTA), was established in 1998 to help create a vibrant, dynamic culture and economy by supporting and promoting innovation and creativity in the UK. To this end, their aims are to help talented individuals reach their potential, to help innovative ideas reach the market, and to contribute to public knowledge and appreciation of science, technology and the arts. NESTA run a series of programmes supporting innovation and creativity, two examples of which are:

    —  the NESTA Creative Pioneer Programme, which focuses on the creative industries and the unique issues facing individuals wanting to practice in the areas of design and the moving image. The programme offers opportunities for personal and professional development for creative graduates who are at the entry stages of their career. The programme offers a residential course where graduates receive personal coaching alongside intensive experiential training in business practice. They then have the opportunity to win an award of up to £35,000 in start up finance; and

    —  the NESTA Fellowship Programme which is aimed at providing exceptional individuals with the time, space and resources to pursue their creative goals, undertake speculative research, experiment, break new ground and develop their talent. Help is in both cash and kind with support tailored to individual needs. 20-50 "Fellows" are selected each year, with awards of up to £75,000 spread over three to five years.

  NESTA also has a pilot fellowship project "Ignite", launched in autumn 2003, for exceptionally creative young people aged between 10 and 21 years old. This is being piloted in 2003-04 and aims to reach young people "whose creative ability leaves you standing" and provide them with opportunities to develop their potential.




2.  WHAT IS THE GOVERNMENT DOING TO IMPROVE GREATER AWARENESS AND INTEREST IN CONTEMPORARY ART AMONG THE WIDER PUBLIC?

  Due to a combination of free entry and capital investment in new gallery spaces, many more people have been able to enjoy and experience contemporary art. Since the opening of Tate Modern, with free admission, in May 2000 and the introduction of free admission at the V&A, in combination with the opening of the British Galleries, the number of visits to DCMS-sponsored Art Galleries has increased by 6 million per annum from 9 million to over 15 million (an increase of 67%). This national trend has been further enhanced by the provision of new gallery spaces in the regions, such as the Baltic in Gateshead and the Walsall Art Gallery. Many contemporary regional galleries, such as the Ikon in Birmingham also provide free access.

  These galleries mount regular exhibitions of cutting edge contemporary art, widely supported by the public.

  Examples of the programmes National Galleries are running to promote greater awareness and interest in contemporary art are:

Tate

  The Tate has a range of programmes designed to promote greater awareness and interest in contemporary art among the wider public. These include:

    —  the Turner Prize, an annual exhibition celebrating British contemporary art practice by artists under the age of 50 at Tate Britain;

    —  the Liverpool Biennial, a biennial exhibition of international contemporary art, the centre-piece of which is held at Tate Liverpool;

    —  the Untitled programme at Tate Modern, a series of small scale projects by international artists;

    —  the Art Now programme at Tate Britain, a series of small scale projects by British based artists;

    —  regular displays of contemporary artists within the general loan exhibition programme at each site (eg Tony Caro retrospective at Tate Britain, Richard Wentworth at Tate Liverpool, Callum Innes at Tate St Ives, Time Zones at Tate Modern); and

    —  a significant element of the annual acquisition budget is dedicated to purchasing work by contemporary artists. However, it should be noted that the purchasing power of the acquisition budget has declined markedly over the last 20 years and it is increasingly difficult for Tate to acquire work by leading contemporary British artists.

National Gallery

  The National Gallery:

    —  has a programme of Associate Artists who work with the collection for two years and then display the resulting work to the public in an exhibition: "John Virtue—the London paintings", the next in the series, opens in March;

    —  displays the work of other contemporary artists from time to time: the next, "Tom Hunter", an exhibition of photographs, opens in December 2005;

    —  encourages people to draw or paint in front of its pictures;

    —  runs drawing and painting courses and practical art workshops for adults, families and children on a regular basis;

    —  displays the work of those who take part in our community projects (eg the work of young women in prison at Bullwood Hall was displayed in "The Space@NG"); and

    —  takes part in and promotes events such as "The Big Draw".

National Portrait Gallery

  The National Portrait Gallery offers national level exposure to artists in three principal ways:

    —  the Schweppes Photographic Portrait Prize (open to all around the world: nearly 8,000 images submitted in 2004);

    —  the BP Portrait Award and Travel Award exhibition (presently with an eligibility of artists under 40; open to all around the world; 900 submitted portraits in 2004); and

    —  the National Portrait Gallery annual commissions programme in which seven or eight commissions are offered to artists each year, to create new works of art for the national collection.

Victoria and Albert Museums (V&A)

  The V&A collects and displays a broad range of the contemporary visual and decorative/applied arts, architecture, design, craft and fashion. Objects range from unique crafted artefacts to items of mass consumption and production. Many contemporary artists and designers cite the V&A's collections as being an inspiration for their work eg Vivienne Westwood, Simon Periton, Jean Paul Gaultier, Sir Paul Smith, Gillian Wearing, Jeremy Deller and Tord Boontje.

  The V&A runs competitions, exhibitions, and events bringing the best of today's visual culture from around the world to the Museum. All aspects of art and design (including fashion, furniture and product design, craft, graphic design, digital media, architecture and photography) and it consider the interrelationships between these art forms.

National Museums Liverpool (NML)

  NML operates on eight unique venues with varied collections covering social history to space travel, entomology to ethnology, dinosaurs to docks, arts to archaeology. It supports contemporary art through:

    —  Collections—at least 20% of annual acquisitions fund spent on contemporary work. Four galleries are devoted to art from 1950s until the present day including winners and purchases from the John Moores exhibitions; and

    —  Exhibitions—John Moores Exhibition (biennial) that showcases contemporary painters.

Government Art Collection

  Through the Government Art Collection (GAC), works of art are placed in major Government buildings in the UK and around the world to promote British art, history and culture. The works of art create stimulating environments in these buildings for staff and visitors. Since 1898, the GAC has acquired works of art mainly by British artists dating from the 16th century to the present day. The Collection now holds approximately 12,500 works of art in a broad range of media including oil paintings, prints) watercolours, video and photographs.

  In undertaking its role, the GAC helps increase awareness and interest in contemporary art by purchasing and commissioning contemporary work and by displaying it in Government buildings in the UK and abroad. Displays of works from the Collection are usually accompanied by interpretative material and GAC staff give talks about works of art both at the GAC and in specific buildings. Many of works of art in the Collection are accessible on its website, www.gac.culture.gov.uk <http://www.gac.culture.gov.uk>.

New Home Office Building

  In an exciting new development for a Government building in London, a number of works of art specially commissioned from a range of 10 artists will be integrated into the new Home Office building. As well as supporting British art, this project will enhance the building and emphasise its landmark status in the surrounding community.

  The project was developed through collaboration between the Home Office, the GAC, architects Terry Farrell and Partners and the Private Finance Initiative (PFI) developer Anne's Gate Property plc.

  Artist and curator Liam Gillick was recommended by the GAC and commissioned to enhance the building façade in five key areas designated by the architects. Gillick developed his ideas in collaboration with Terry Farrell. The completed elements are: a coloured glass canopy, coloured glass fins in the ground floor windows and a unique brise-soleil (sun blind) above the main entrance. Gillick also designed a hidden text that runs across the façade and sculptures for the front of the building.

  Gillick, with the Government Art Collection, then selected six of Britain's most talented artists to create site-specific work for the immediate area surrounding the new building. These include:

    —  a neon light sculpture inset beneath a bridge between two buildings (complete);

    —  mosaic rugs to sit in front of log fires cast in bronze in one pedestrian area (complete);

    —  films reflecting life in Bangladesh and Whitechapel presented on screens submerged in the water feature in front of the main building (in production);

    —  a large, colourful and playful sculpture that will glow and slowly rotate (in production);

    —  a sculpture for the entrance plaza (under development); and

    —  a 26 year project that will, over time, engrave a street with thoughts on what it means to be a British citizen (ongoing).

  For the interior of the new building, the Home Office asked the GAC to select artists to develop three other projects. The Home Office suggested one project should include liaison with the Koestler Award Trust, an organisation that supports the rehabilitation of offenders through arts education. The following work has been initiated:

    —  two wall paintings for areas flanking the main reception desk;

    —  a large sculpture for the main atrium; and

    —  a project that promotes the rehabilitation/educational aspects of visual art in prisons enabling the Home Office to establish the Home Office Collection of Prison Art that will be presented at points in the building.

3.  WHAT RESOURCES DOES THE ARTS COUNCIL COMMIT TO ARTISTS' PROFESSIONAL DEVELOPMENT, AND WHAT KEY AREAS AND ISSUES HAVE THE COUNCIL IDENTIFIED? HOW IS SUPPORT FOR ARTIST DEVELOPMENT WEIGHTED IN COMPARISON TO PROMOTING ACCESS TO THE WORK OF ESTABLISHED ARTISTS?

Studies on the art market

  In 2002, the Arts Council commissioned Morris Hargreaves McIntyre to report on how to cultivate the art market. The results, published in October 2004, make 27 recommendations on how sales of contemporary art and innovative contemporary art can be developed. These are attached to five broad strategic objectives, as follows:

    —  to help more artists to sell more work;

    —  to help more people buy contemporary art;

    —  to develop the supply side;

    —  to build the collector base; and

    —  to attract more cash into the sector.

  The art market does not have a regulatory body at present and operates mainly on levels of interest in particular artists. Art world professionals (academics, curators, dealers, critics, artists, buyers) advocate and endorse artists' work through exhibitions, critical appraisal and private and public purchases. The value of an artist's work is therefore directly proportional to the levels of interest it attracts and sustains. Sales to public collections are seen as positive endorsement and enhance the reputation of the artist, whereas sales to lesser known, unknown or less respected parties can have either no or detrimental effect on the level of interest in the artist. Therefore, a successful artist can, by maintaining his or her exclusivity and avant-garde appeal, command high prices in the market. Paradoxically, a wider expansion in the market for their art—popular appeal—may work against them by reducing cachet and therefore drive down the prices work can command.

Other initiatives and activities

  ACE aims to place the artist at the centre of its activities and to grow the economy for artists. To widen the current market and collector base for contemporary art, the Arts Council's New Audiences Department commissioned research on the size and composition for the market for contemporary art in England for which little data existed.

  ACE also funds organisations that provide exhibition space, affordable studio space, business advice and continuing professional development to artists. These include Spike Island in Bristol, Space Studios in London and CreativePeople, a web-based project that provides information, advice and guidance on professional development in arts and crafts.

  Crafts Council England, through its "Next Move" initiative, supports arts graduates to establish themselves in business by providing them with access to equipment and resources.

Arts and Business (A&B)

  Arts and Business claims to be the world's most successful and widespread creative network. Receiving around £5.5 million per annum from ACE, the purpose of A&B is to promote mutual benefits, helping business to be more successful in engaging with the arts and to increase resources for the arts from business. Funding from central government helps to foster innovative and long-term partnerships between business and the arts through an investment program. See Annex A for details of amounts of funding generated.

  To encourage greater corporate sponsorship, A&B highlight the benefits of business/arts partnerships by running a series of Introduction to Sponsorship seminars. To facilitate effective evaluation of these benefits they provide guidance on evaluation and also promote it through their new partners programme.

Own Art

  DCMS directly funds "Own Art" through a subsidiary company of Arts Council England. "Own Art" is designed to encourage people to buy art and thereby stimulate the contemporary art market for the benefit of artists. Loans are only available up to £2,000 (to be repaid within 10 months) therefore favouring work by new and up and coming artists as well as appealing to low spend consumers.

  DCMS funding for Own Art in 2005-06 is £250,000. "Own Art" is administered by HFC bank (a subsidiary of HSBC). "Own Art" pays HFC a fee per loan, in return HFC administers the credit arrangements, provides a call centre for customers and takes on the risk of bad debt, as well as providing cash-flow. "Own Art" aims to have 250 galleries participating in the scheme. Arts Council England monitors the scheme through a Grant Agreement with DCMS.

  The art galleries are carefully selected for this scheme to ensure that they sell contemporary work by living artists and are not at the expensive end of the contemporary art market. The majority of contemporary galleries are small, often linked to subsidised galleries or local authorities. These galleries are important in providing a source of income for artists and giving space for their work to be seen.

4.  WHAT ROLE DOES THE BRITISH COUNCIL PLAY IN PROMOTING BRITISH ARTISTS OVERSEAS? HOW IS AN APPROPRIATE BALANCE MADE BETWEEN ESTABLISHED AND NEW ARTISTS?

  The British Council focuses on presenting new and young British artists overseas both in the public and commercial sectors. It does this in four ways:

    —  "Creative Exports"—This is an open-submission scheme for professional artists with invitations to exhibit in commercial galleries overseas. Over 100 artists are supported annually through this scheme.

    —  Exhibitions—British Council organises around 12 exhibitions annually, focusing on young British artists. These exhibitions are organised with the museum sector overseas, to encourage sales directly into the museum network and to increase awareness of developments in young British art among dealers, art fairs, curators and practitioners. Some recent examples include: "Tracey Emin and David Hockney prints": tour of Chile, Colombia 2004-05; Anthony Gormley's "Asian Field"; tour of China, Japan and Korea 2003-05 and Sam Taylor-Wood: first solo exhibition in Russia, 2005 (Moscow and St Petersburg).

    —  International Biennials and Triennials—The British Council organises and supports British participation in international Biennials and Triennials to maximise coverage for British artists within the international art world. Examples include: Venice Biennale (Chris Ofili shown in 2003: Gilbert and George in 2005); Sao Paulo Biennial (Mike Nelson shown in 2004); Indian Triennial (Roderick Buchanan shown in 2005).

    —  Displays—The British Council Collection is displayed in offices throughout the British Council Estate in order to maximise awareness of contemporary British art among clients and customers of British Council overseas. The policy is to focus on contemporary developments to support profile of an innovative and creative Britain today. The British Council Workshop sends 4,000 works of art per annum overseas. New commissions by British artists are given whenever possible eg David Tremlett for BC Nairobi; Howard Hodgkin for BC New Delhi; Catherine Dowson for BC Sao Paulo; Paul Morrison for BC Brussels. Special exhibitions of up to 50 works from the British Council Collection are put together for overseas offices to meet public diplomacy requirements, with published catalogue for distribution to wider audiences.

  A small proportion of the visual arts programme features historic and older developments, but presented in new ways, in order to introduce overseas British skills in ancillary museum services such as education, lighting and design, architecture, branding and graphics. "Constable selected by Lucian Freud", shown at the Grand Palais, Paris in 2002-03 is an example.

Government Art Collection

  The GAC places works of art in the reception areas of several hundred British Embassies and Residences around the world in order to promote British art, history and culture.


5.  IS THERE A NEED FOR A CODE OF BEST PRACTICE FOR GALLERIES AND AUCTION HOUSES? IF SO, WHAT SHOULD THIS PROVIDE FOR, AND WHO SHOULD IMPLEMENT AND MONITOR IT?

  The Department does not have strong views either way on the need for a code of practice. However it is aware that there are views for and against within its sectors:

Tate

  Each of the four Tate Galleries has spaces available for the presentation of contemporary art. Tate feels a code of best practice would be unhelpful given the very different institutional contexts within which contemporary art is exhibited and displayed and suggest a better way forward would be for Government to encourage specific funding to support contemporary art acquisitions, to encourage funding bodies to support contemporary art practice, and to review the incentives available to encourage acquisitions of contemporary art by public institutions. This could be promoted through existing funding bodies, and through the fiscal regime (cf Goodison).

National Museums Liverpool

  National Museums Liverpool welcomes the opportunity to explore with others, the development of best practice guidelines to ensure responsibilities by galleries and auction houses to artists are in place.

6.  WHAT ARE THE PROSPECTS FOR ACHIEVING INTERNATIONAL (ESPECIALLY WITH THE USA AND SWITZERLAND) AGREEMENT OVER ARTISTS' RESALE ROYALTIES BEFORE THE UK HAS TO IMPLEMENT DROIT DE SUITE? DOES THE UK INTEND TO MAKE MAXIMUM USE OF THE DEROGATION THAT WOULD ALLOW FOR SOME DELAY IN INTRODUCTION OF THE RIGHT, OR WILL IMPLEMENTATION BE TIMELY?

  The following sets out the Department of Trade and Industry's position on this issue.

Background

  1.  The Directive was agreed in September 2001 and requires a "artists' resale right" (often referred to by its French name droit de suite) to be introduced by 1 January 2006. The right will entitle artists and, for 70 years after death, their successors in title to a percentage of the sale price whenever original works of art are re-sold in transactions involving art market professionals.

  2.  The art market has been fiercely against the introduction of the right and a number of concessions were gained during the negotiation of the Directive to minimise the potential damage to the UK art market.

Current position

  3.  The Government will be consulting on the implementation of the Directive throughout February to April 2005. The full background and draft impact assessment will be published as part of the consultation process. Copies will be sent to the Committee as soon as they are available.

Detail

  4.  Artists' resale right is intended to support artists by paying them a royalty when one of their works is resold by an art market professional. This supplements their income and encourages them to produce more works to enhance the reputation.

  5.  There is a risk that sales will be diverted to countries outside the EU (principally Switzerland and the USA, the UK's major competitors), which do not have the right, to avoid royalty payments.

  6.  To allow the art market time to adapt to the new right, the UK secured a derogation so that the right need not apply to works of deceased artists until 2010 (this may be extended to 2012 if the UK makes a case for requiring more time). These are the high value works in which the UK market specialises and are most at risk of diversion. The UK intends to make full use of this derogation.

  7.  In 2002 the Commission agreed that it was a priority for the EC to negotiate internationally to make the relevant article of the Berne Convention mandatory so that the right would be introduced in the USA and Switzerland. To date such attempts have not succeeded and both the USA and Switzerland have said they do not intend to introduce the right.

  8.  It is likely that the majority of payments would be made via a collecting society. This would reduce the administrative costs involved and maximise the benefit to the artists. There is an option within the Directive to make collective management compulsory and the UK is consulting on whether this would be the most efficient process.

7.  TO WHAT EXTENT COULD THE INTERNET PROVIDE EFFECTIVE EXPOSURE TO EMERGING ARTISTS? WHAT SUPPORT IS AVAILABLE, OR COULD BE MADE AVAILABLE TO ARTISTS TO ENABLE THEM TO EXPLOIT THIS MEDIUM?

  The internet is an important means of providing exposure to established and emerging artists/photographers, particularly through on-line galleries.

  There are broadly three types of on-line galleries:

    —  Long-standing commercial picture agencies/libraries. These tend to have established artists on their books, rather than emerging artists, particularly those that are not working in traditional media or working in abstract art. Agencies hold collections of many thousands or millions of images. They can range from the work of a single individual artist to that of many and enable picture-users to find the image they need quickly and easily. Picture libraries provide artists with marketing and administrative services. Traditionally, this business has been conducted using photographic media, ie film and prints, but an increasing proportion is now transacted digitally and on-line.

    —  These organizations are in the business of selling pictures: their purpose is strictly a commercial one, to meet the demand for stock pictures from such markets as magazine and book publishers, advertising agencies, travel operators, greetings card and calendar publishers, and many more. Agencies handle pictures of every subject under the sun. Some specialize in particular subjects, while others act as general agencies, covering the whole spectrum of subject matter. They generally work on a commission basis, 50% being the most usual rate, and few buy works from artists outright.

    —  There is a UK trade association for such agencies—the British Association of Picture Libraries & Agencies (BAPLA—www.bapla.co.uk). BAPLA is the largest organization of its kind in the world. With over 400 member companies, it represents the vast majority of commercial picture libraries and agencies in the UK. Agencies range from small specialists to multinationals, collectively managing in excess of 350 million images, within an industry estimated to be worth over £500 million per year in domestic revenue.

    —  New web-based sites (eg. www.uklandscape.net) emerging as a result of easier internet access. These are small-scale versions of the larger commercial agencies. Some of these receive sponsorship and may be run as a sideline to an individual's day job. They usually have a commercial element, such as sales of a photographer/artist's work on a commission basis (usually less than 50%). Some of these sites specialize in new artists (eg www.zerooneart; www.outsiderart.co.uk; www.minigallery.co.uk; www.takingitglobal.org, which is supported by the UN (UNESCO and UNICEF));

  Many artists have developed their own web-sites, which they use to promote their own work (eg. see almost any photographic magazine or the Bulletin Board on "Amateur Photographer" magazine website—www.amateurphotographer.co.uk—for many examples). They often have online galleries of works currently available for sale, and links to any works in public collections or information on their work that is on display in other places—such as in business premises. Many artists also publish low-volume runs of cards, books and other items for sale, and some auction their work on commercial sites such as eBay.

  There are also other examples of the internet providing an outlet for artists' work. Commercial galleries, even those that operate at a very small scale, often have their own websites that they use to promote exhibitions. Art Schools may promote the work of their students in online galleries of their Degree Shows to give wider exposure. Many small museums and public art galleries have temporary exhibitions, which promote the work of emerging artists. These will then be promoted on their own websites and through portals such as the 24 Hour Museum (www.24hourmuseum.org.uk). The Tate Gallery commissions digital art for its website, as do others. Some new media companies commission work from emerging artists during the development of new projects.

  Apart from individual Culture Online projects (see www. cultureonline.gov.uk), there are already plenty of examples from elsewhere in the world of online galleries for artists/photographers. In the UK, the Arts Council supports the work of individual artists, many of who work in digital arts, and who publish their work online. The important thing is to get a critical mass of artists to have their work represented, and to get a critical mass of audience in front of it. These two factors are obviously linked and done correctly there is the possibility of a virtuous circle.

  Further support could be made available through a portal (public or private) to promote the existing initiatives. New ideas might include a virtual gallery of new art—with an accompanying high profile competition—a virtual Royal Academy Summer Exhibition; and encouraging the commissioning of new art by major online sites, on the same basis as the percentage for the arts in capital spend. There could also be a role for broadcasters; Channel 4 has commissioned new work in the past.

  A significant barrier is the position on copyright, where public institutions must obtain the permission of the artist in order to use an image of a work of art in order to promote an exhibition, both in marketing materials such as posters, and also online. In some cases this could result in public institutions being required to pay significant fees to the artist in order for the institution to promote their work. Auction houses have an exemption under copyright law to enable them to use images of works of art in order to advertise the sale of the work of art.

Annex A

RESULTS OF 2002-03 BUSINESS INVESTMENT SURVEY

  The 2002-03 Business Investment survey collected data from 2,020 arts organisations. The following information comes from this survey.

  In what follows, please note the following definitions:

Museum/Gallery—A venue holding a permanent collection of visual arts or artefacts.

Visual Arts—Non-collection based venues, which are used primarily for temporary exhibitions of visual arts (including public art and sculpture).

  In 2002-03 Museums/Galleries and the Visual Arts in the UK raised income from the following sources in the private sector:

Income SourceMuseums & Galleries Visual ArtsTotal for all art forms
General Business Sponsorship14,200,615 3,562,97064,112,562
Corporate Membership2,481,273 929,90013,876,270
Corporate Donations1,828,314 301,6256,984,427
Capital Projects1,845,959 223,0506,246,555
Sponsorship in kind1,420,529 1,107,07114,599,975
Creative training and development98,890 67,1483,469,677
Total Business Support21,875,580 6,191,764109,289,466
Individual Donations8,148,735 1,511,78243,323,067
Friends Schemes2,318,402 7,248,44099,382,272
Gift of Shares1590 2,454,877
Payroll Giving3,028 2,79441,241
Legacies1,794,7883,280,661 57,551,657
Total Individual Giving12,265,112 12,043,677202,753,114
Total Trust Income14,004,636 1,738,09952,896,419
Total of Business Support, Individual Giving and Trust Income 48,145,32819,973,540 364,938,999


Individual Support of the Arts

  Through the Maecenas Initiative, funded by the DCMS, Arts & Business is:

    —  training arts organisations on how to raise money from individuals;

    —  undertaking research in this area; and

    —  developing a stronger understanding of key developmental issues in this area and working to addressing them (a key priority in this, for instance, will be the area of tax and giving).

BUSINESS SUPPORT OF THE ARTS

  The following table outlines how business support for Museums/Galleries and the Visual arts sector has varied over the last seven years relative to other arts sectors

Artform Category2002-03 2001-022000-011999-2000 1998-991997-981996-97
Arts Centres3,972,935 3,253,0412,895,5231,694,936 1,634,2321,177,2921,303,227
Community Arts2,795,544 3,272,0131,734,7421,475,236 1,651,4791,382,218752,460
Crafts194,119142,035 23,600162,100127,139 13,72539,845
Dance4,945,9002,002,953 1,679,7441,698,1703,011,503 1,751,7303,006,472
Drama/Theatre12,861,843 10,903,77711,288,53115,420,589 17,176,61219,919,157 16,549,317
Festivals8,776,5616,711,607 7,086,2478,984,1059,751,654 10,418,0318,119,294
Film/Video7,973,9897,601,175 6,049,56210,594,8615,399,042 5,875,3793,847,112
Heritage4,674,4432,259,726 3,602,6143,788,8116,723,467 1,946,4022,231,541
Literature/Poetry1,138,931 1,066,5181,612,9071,340,615 793,211517,115424,270
Museums & Galleries23,044,087 25,721,40725,237,797 38,746,45731,790,49218,313,456 12,759,449
Music14,673,5459,596,274 10,870,05810,891,285 12,335,84810,869,07111,094,608
Opera5,530,4768,585,850 8,345,31418,122,16113,035,696 8,055,3289,707,898
Photography723,452414,760 207,500231,3481,851,528 813,62162,700
Services2,208,2022,655,495 1,331,2401,589,3622,014,689 472,418360,713
Visual Arts6,213,4576,443,240 10,309,4026,353,5267,367,971 8,826,4815,062,723
Other
(Inc. Local Authorities)
11,612,354 8,706,2809,580,34913,533,497 16,068,57813,064,571 10,810,263
Total111,339,83899,336,151 101,855,130134,627,059 130,760,141103,415,99589,680,562

Source: Arts & Business Survey Data 2002-03, 2001-2002, 2000-2001, 1999-2000

  When looking at business investment in 2002-03 Museums/Galleries brought in the largest amount of investment (20% of the overall total). In put this into context, Music brings in 20% of the total investment, Drama/Theatre 11%, Opera brings in 5%, Arts Centres account for 4%, Heritage 4%, Dance 5%, and Visual Arts 6%.


11 February 2005





53   We have taken the term artists to mean visual artists. Back

54   Source: "The European Art Market in 2002-A Survey" by The European Fine Art Foundation. Back

55   Sponsored by DCMS, DfES, ACE, NESTA, Raising Standards and the Centre for British Teachers. Back


 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2005
Prepared 6 April 2005