§ Lord Pearson of Rannochasked Her Majesty' Government:
Whether they agree that the European Directives on Restitution and Droit de Suite (artists' re-sale rights), together with the harmonisation of VAT on works of art, are having a damaging effect on the British art market, and, if so, what steps they will take to rectify the situation.
§ The Minister of State, Department of Social Security (Lord Mackay of Ardbrecknish)The UK has not yet received a request for the return of an object (restitution) under the directive on the return of unlawfully removed cultural objects; and we have repeatedly said that we do not intend to be subjected to unnecessary or vexatious requests. As such, the directive should not affect the legitimate art market in the UK.
The Commission has indicated that it intends to bring forward a proposal on droit de suite but has yet to do so; no judgment can therefore be made at this stage on its impact on the UK art market.
Customs and Excise are not aware of the harmonisation of VAT on works of art having a damaging effect on the British art market.