Select Committee on Culture, Media and Sport Written Evidence


Memorandum submitted by The National Gallery

A BRIEF INTRODUCTION TO THE NATIONAL GALLERY

  The National Gallery's collection of Western European paintings dating from the thirteenth to the nineteenth century is one of the richest and most comprehensive in the world, the equal of other major collections and vying with the very greatest including the Louvre, Prado and Uffizi. The collection belongs to the nation and the Gallery serves an enormous range of visitors from the UK and abroad. The Gallery's role is to engage the public in the experience of this great collection. It is open to all, 361 days of the year, free of charge.

THE ISSUE

  1. The National Gallery is submitting evidence on one single issue, which is of increasing concern, and which, we believe, should be of concern to the Select Committee for Culture, Media and Sport: that is, the increasing cost of great works of art, including those on long-term loan to British galleries; the corresponding temptation for owners to sell them; and the inadequacy of the funding to enable national institutions to acquire them.

  2. The Gallery believes that there are two bodies whose remit includes funding the acquisition of works of art: these are the National Heritage Memorial Fund (NHMF) and the Heritage Lottery Fund (HLF). In the past they have consistently been able to support major acquisitions. However, in the future neither Fund is likely to prove capable of financing acquisitions of great works of art in the way that they have in the past: the NHMF lacks adequate funds, and the HLF has made it clear that it treats such acquisitions as a low, if not marginal, priority within its remit.

  3. It is absolutely essential that the National Gallery can continue to enhance its collection—strengthening its weaker areas, expanding its geographical range (for example, by the addition over the past 15 years of paintings from Scandinavia), and continuing to enhance its scope and depth. New acquisitions help visitors to see what is already in the collection in new ways. For example, Stubbs' Whistlejacket, acquired in 1997 with the support of the HLF, not only introduced a great masterpiece, but also (as an early, and English, example of Romantic art) served to redefine the other eighteenth-century pictures around it. New acquisitions generate excitement, attract new audiences, and enliven the Gallery's education programme; they help the Gallery maintain its world standing, and so contribute to London's profile, economy and tourist appeal.

  4. How the country can, and should, acquire great works of art has preoccupied the House of Commons to a greater or lesser degree since the foundation of the National Gallery in 1824. Since the nineteenth century it has been viewed as a responsibility of Parliament, and of the Treasury acting on its behalf, to ensure that funding is available to purchase great works of art as and when they come onto the market.

  5. In the early years, acquisitions tended to be ad hoc and dependent on the generosity of individual donors, but both the Treasury and the House of Commons fully recognised their responsibilities for providing funding for major acquisitions, including, for example, the acquisition in 1825 of Correggio's Madonna of the Basket (NG 23) for £3,800 and a grant in 1826 of £9,000 for the purchase of Titian's Bacchus and Ariadne (NG 35), one of the greatest works in the collection, as well as Poussin's Bacchanalian Revel before a Term (NG 62) and Annibale Carracci's Christ Appearing to St Peter on the Appian Way (NG 9).

  6. The great quality of the collection, its range and depth and particularly its extraordinary holdings of Italian art, are a direct consequence of the Report of the Select Committee in 1855, which established the National Gallery on a much more secure footing, and led to the appointment of Charles Eastlake as Director with a remit to acquire works of art on the continent, especially in Italy. If generous public funding had not been available during the succeeding decade, Britain would not have acquired one of the world's major collections, nor the benefits that derive from it.

  7. Over the long term, the price of great works of art escalates as demand increases and the supply of old master paintings is correspondingly reduced. As a result, prices that seem high at any given time, and may deter acquisitions, look like bargains afterwards. In the closing months of the First World War, John Maynard Keynes, then at the Treasury, recognised the long-term benefit of investment in the purchase of great works of Impressionist art and helped the National Gallery to acquire some from the Degas sale in Paris; but the failure in the early decades of the twentieth century to buy more than a tiny handful of such pictures, before their prices began to rise, has diminished the Gallery's appeal to the public ever since.

  8. After the outcry following the export of Vela«zquez's Juan de Pareja to the USA in 1970 and the difficulties faced by the national collections during the sale of Mentmore in 1977, parliamentary initiative led to the establishment of the National Heritage Memorial Fund (NHMF) through the 1980 National Heritage Act, with cross-party support. This acted as a fund of last resort for the national collections with great success during the 1980s, alongside generous grant-in-aid for acquisitions which meant that, in 1983-84, the National Gallery was given £3.31 million per annum specifically for acquisitions (in current terms this is the equivalent of approximately £7.3 million).[57] However, even then the NHMF lacked the financial resources to meet the demand: in 1984 Lord Charteris, its chairman, acknowledged that there were "inadequate resources to deal with the projects that [it] will be asked to grant-aid", and foresaw damaging inflation in prices in the art market because of wealthy buyers overseas.[58] As Liz Forgan, the current chairman has said, `The needs of the heritage were greater than even the NHMF could meet".[59]

  9.  In 1993, to address these needs and in recognition of the success of the NHMF in helping major institutions acquire great works of art, it was given responsibility for distributing the share of funding from the National Lottery for the heritage. It does this through the Heritage Lottery Fund (HLF). For the NHMF, heritage consisted of two spending priorities, "Heritage real estate" and "Moveable Heritage", where the latter meant "museum objects and manuscripts".[60] It was assumed that the HLF would take on the spending priorities of the NHMF. Had they done so the problems surrounding funding for acquisitions would have been solved forever.

  10. However, the HLF has progressively developed its spending priorities to the exclusion of the acquisition of works of art. In 1998 ministerial advice increased the extent of the HLF's spending duties, and the HLF's funding stream is currently under review; in its recent consultation document [Our Heritage, our future] it has set out its proposed plans for the future omitting all mention of the acquisition of works of art.

  11. In the past the HLF has given substantial and generous donations towards acquisitions. For example, in 1995 The Channel at Gravelines by Seurat helped to strengthen the Gallery's holding of post-Impressionist works and, in July 2003 after a long public campaign, £11.5 million was granted for the acquisition of Raphael's The Madonna of the Pinks by Raphael. This was a centrepiece of the Raphael exhibition at the Gallery in 2004, which raised the profile of London as a tourist destination and generated tourist revenue estimated at over £20 million. However, the HLF now considers the occasions where it has funded acquisitions as exceptional: of the sum put towards The Madonna of the Pinks Liz Forgan has said, "It was a happy outcome, but one that will always be an exception".[61] The Treasury, when asked for funds to help buy the Raphael, recognised that the Gallery had no recourse other than to the HLF. But HLF's assistance with the Raphael is unlikely to be repeated. In 2005 HLF spent only £1.18 million on acquisitions for museums and galleries out of total commitments of £357.6 million during the year as a whole.

  12. The HLF has argued that acquisition of great works of art should be the job of the NHMF:

    The Lottery has rarely been called on to fund the acquisition of major masterpieces. Yet there have been rare occasions when the HLF has been able to ride to the rescue, to do a job that the NHMF was unable to do.[62]

  However, the NHMF has not resolved the funding issues that have caused it difficulty since it began.[63] The NHMF has spent an average of £4.4 million on acquisitions per annum since 1995-96: a sum which is useful for some acquisitions but totally inadequate for the acquisition of old master paintings, with typical prices now of £10 million and more.

  13. The National Gallery's annual purchase grant was a substantial sum in the 1980s, but the Government ceased to ring-fence grant-in aid for acquisitions in 1992 and acquisitions funds have since been squeezed out of existence by a real-term reduction in Government grant-in-aid. Meanwhile, the Getty Bequest of 1985 which was expected to enable the National Gallery to compete with American institutions in the acquisition of great works of art is the only remaining major source of acquisitions funding for the National Gallery, but is itself inadequate to fund the purchase of major old master paintings without eroding the real-term value of the original gift. It was not given to replace government support, but to enhance it.

  14. This situation led the National Gallery to take the view that it could not put in an offer for Titian's Portrait of a Man last year—a picture which has been in this country since the early eighteenth century, and has always been regarded as one of its greatest works of art. It is now being marketed at a price reported to be $120 million and, removed from the walls of the National Gallery, will almost certainly be sold abroad.

  15. There are possible solutions:

    —  the purchase grant should be reinstated at a level equivalent to 1983 (ie £7.3 million pa), by increasing grant-in-aid by this amount and ring-fencing the allocation as in the past.

    —  the Trustees of National Heritage Memorial Fund should be required, at the time of the renewal of their charter in 2009, to spend half the income from the lottery on acquisitions.

    —  the Government should consider the establishment of a National Acquisitions Fund, as first proposed by the Treasury in October 1922.

    —  the Treasury should revive the system of direct exchequer grants from contingency, a system of funding which worked satisfactorily in the past.

    —  effective tax incentives should encourage lifetime gifts of works of art, as recommended by the NACF and the Goodison report.

  16. In the past, parliamentary initiative has led to effective solutions for the funding of Britain's national institutions. We urge the Select Committee to seek solutions to the problems of today.

January 2006








57   Calculated using retail purchase index, not taking into account the above average inflation in price of works of art. Back

58   Lord Charteris, "The World of the National Heritage Memorial Fund", Journal of the Royal Society of Arts, Vol 132, 18 January 1984, p. 333. Back

59   25 years of the NHMF-The Story of a Nation, Liz Forgan, 5 October 2005 Back

60   Charteris, op.cit., p.326 Back

61   25 years of the NHMF-The Story of a Nation, Liz Forgan, 5 October 2005 Back

62   ibid. Back

63   ". . . though the NHMF continued the essential job that it was doing, often without great fanfare, it was increasingly eclipsed by the HLF, so that, as HLF bloomed, the NHMF started to wither." Ibid. Back


 
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