The Arts and National Heritage: Sponsorship (Hansard, 24 October 1983)

§ Lord Strabolgi
My Lords, I beg leave to ask the Question standing in my name on the Order Paper.

The Earl of Gowrie
My Lords, business sponsorship of the arts is already running at a very encouraging level. Nevertheless my office is continuing to explore with the Inland Revenue and the Association for Business Sponsorship of the Arts whether there are further incentives which might be offered in order to attract even more support.

§ Lord Strabolgi
My Lords, while thanking the noble Earl for that reply, may I ask him whether he is aware that the Conservatives' manifesto—the one presented to the public—promised to examine ways of helping the arts by giving tax concessions and so on to donors and contributors to public museums and galleries? Is he trying to take this a step further?

The Earl of Cowrie
My Lords, the Conservative Party's manifesto is never far from my thoughts, and I am glad to say that a number of improvements to the tax incentives available to individuals and companies in respect of the arts, have been introduced during the life of this Government. There was a VAT concession in respect of disposals from historic houses, and a guide to general systems of tax reliefs available to private owners of works of art of museum quality importance was published by my office in July 1982. I am anxious to take this further step by step.

§ Lord Harmar-Nicholls
My Lords, is my noble friend aware that so far as the theatre is concerned, a sensible consideration of reducing the VAT impost may very well produce extra financial resources for the Chancellor and at the same time encourage the earning of invisible exports?

The Earl of Gowrie
My Lords, I have to confess to being rather a hawk where VAT is concerned. The problem with VAT, which is a comprehensive tax, is to have any exceptions whatsoever.

§ Lord Jenkins of Putney
My Lords, will the noble Earl agree that while it is extremely desirable to encourage private contributions and support for the arts in every possible way, the main support must continue to come from public funds, both national and local, and will he give us some assurances on that point?

The Earl of Gowrie
My Lords, I have made it clear both in the House and outside it that I look upon any benefits that we can receive for the arts from private funds as being in addition to, rather than in lieu of, continued public support.

§ Lord Strabolgi
My Lords, may I ask the noble Earl whether he will confirm that the Government are not prepared to accept the Rayner Report—the second Rayner Report, that is—which proposed the direct funding of the Royal Opera House at Covent Garden and the Royal Shakespeare Company?

The Earl of Gowrie
My Lords, I think that the noble Lord, Lord Strabolgi, is referring to the report made to me on the funding of the Royal Opera House and the Royal Shakespeare Company by Mr. Clive Priestley. I have now received this report, and it has gone out to 10 the arts bodies, to the Opera House and the Royal Shakespeare Company for consultation.

§ Lord Annan
My Lords, will the noble Earl agree that however much easier it is made to get private sources to contribute to the purchase of works of art, and however more attractive it could be made to enable individuals to make private treaties with museums and gallaries, there is no substitute for an adequate purchase grant being given to the major national galleries and museums? Is the noble Earl aware that the asking price for a major work by an Old Master is now well in excess of the total annual purchase grant given to the National Gallery?

The Earl of Gowrie
My Lords, I tried to deal with the question of additionality (if I may put it that way) in my reply to the noble Lord, Lord Jenkins of Putney. I am of course acutely aware of the high costs of great works of art on the international market. I have also to be aware, as I think the whole country is, of how very fortunate we are in this country in that so many great works of art remain here in both public and private hands.

§ Lord Molloy
My Lords, in addition perhaps to incentives, will the noble Earl the Minister be prepared to take on board and consider that there are very many voluntary organisations which wish to be involved in aiding the arts, but find difficulty in getting launched? They are fairly confident that if they could get launched, they could provide reasonable wherewithal for the arts in general. Will the noble Earl be prepared to look at the proposition that voluntary organisations that could apply for some initial help would be considered?

The Earl of Gowrie
My Lords, it is a great pleasure to be able to welcome a supplementary question from the noble Lord. It is precisely in order to meet his point that the Association for Business Sponsorship of the Arts has been set up. A vigorous and successful young director has taken over from Mr. Luke Rittner, and I am very confident that the association will be able to achieve the purpose that the noble Lord outlined.

The Lord Bishop of Norwich
My Lords, with regard to the national heritage part of this Question, is the noble Earl aware that the British Tourist Association has designated 1984 as British Heritage Year, and within that there is to be a Christian Heritage Year, drawing attention to the great traditions of the nation from the Christian point of view? Will the Government give publicity, encouragement and support, if not in actual financial form, to that particular plan?

The Earl of Gowrie
My Lords, it is very nice to be asked for support of a non-financial character, and I give it most freely.

§ Lord Strabolgi
My Lords, with regard to trying to help to keep works of art in this country, which was alluded to by the noble Earl, will he consider increasing the in lieu percentage—the so-called douceur—from 25 per cent. to at least 50 or even 75 per cent., as recommended by the Select Committee of another place?

The Earl of Gowrie
My Lords, of course we all like more, but the fact of the matter is that I have no evidence at this stage that the douceur system, as it is so called, is not working satisfactorily.