Monday 18 February 2008

Why should artists be singled out for special privileges?

That's the strap-line from Joanne Black's back-page column in this week's Listener (not online yet). Here's the first para:

'The government has decided to go ahead with its scheme to introduce resale royalties for visual artists, which was the subject of a discussion document last year. As economics professor Tim Hazeldine pointed out at the time, dead artists will get the most from the scheme. It is an odd group to appeal to, as they are even less likely to vote than the Exclusive Brethren.'

I'm not sure where Black got the skinny on this: the MCH page about the scheme doesn't mention a govt decision, and hasn't been updated since June 2007; there's nothing posted on the CNZ site; nor is there anything on Judith Tizard's page on the Beehive site. Maybe an official annoucement will be made this week ...

You can read back of the royalties debate here (note the RNZ and Dom Post coverage is no longer available).


Anonymous said...

Maybe she got it wrong? I was surprised when I read it. I still can't see how its going to be administered

tinks said...

I suspect she got it from the Prime Minister's opening address to Parliament last week. Actual phrase was:

"The main priorities this year will be...

...and advancing legislation to provide for resale royalties for visual artists – a move which is overwhelmingly supported by New Zealand artists."

Courtney Johnston said...

thanks for the slething tinks

regarding artandmylife's question re: administering the collection of resale fees: from the discussion document:

Comment is invited as to which government agency, statutory body or non-government agency might administer the collection of resale royalties in New Zealand.

The cost of administering resale royalties in a market the size of New Zealand may be a key factor in determining its sustainability. Nearly $9.5 million of sales at auction by New Zealand artists in 2006 would have been eligible under a resale royalty scheme, with estimated royalties of nearly $500,000.[32] Should a 15% commission rate be charged on these royalties, the amount collected for administration costs would be approximately $75,000. Under a 20% rate, this would increase to $100,000 and, under a 25% rate, to $125,000.

These estimates are based on commission rates on royalties from auction sales only. Applying obligations across the art market will increase the level of royalties payable and thus the amount derived from the commission rate. It is, therefore, anticipated that the scheme could be self-sustaining.

Question 14: Do you agree that the collection of resale royalties should be administered by one agency? If not, how many agencies should be able to collect resale royalties? Which type of agency do you think may be the most appropriate to administer the collection of resale royalties? Do you have any specific agency or agencies in mind?