Written question asked by Lord Swire (Conservative) on Monday, 21 February 2005, in the House of Commons. It was due for an answer on Wednesday, 9 March 2005. It was answered by Patricia Hewitt (Labour) on Wednesday, 9 March 2005 on behalf of the Department of Trade and Industry.

Dept of Trade and Industry

Question: To ask the Secretary of State for Culture, Media and Sport, what her Department's estimate is of the cost to the British art market of the European Union's Directive 2001/84/EC, Artist's Resale Right Directive, if (a) royalty collection is made compulsory and (b) the royalty rate is set at five per cent. - Inc figures.

Answer: Mr. Swire: To ask the Secretary of State for Culture, Media and Sport what her Department's estimate is of the cost to the British art market of the European Union's Directive 2001/84/EC, Artist's Resale Right Directive, if (a) royalty collection is made compulsory and (b) the royalty rate is set at five per cent. [217663] Ms Hewitt: I have been asked to reply. (a) Based on figures provided by the art market it is estimated that the cost of transactions would be reduced from approximately £38 per artwork if the right is managed by individual artists to approximately £28 per artwork if the right is administered by a single collecting agency. The Patent Office has asked in its present consultation for views on whether collective management of resale royalties should be made compulsory. (b) The directive provides an option for increasing the royalty rate paid on the first è50,000 of the sales price from 4 per cent. to 5 per cent. The UK is not currently proposing to use this option and therefore no estimate of costs based on this rate has been made.

Secondary information