HC Deb 26 November 1999 vol 339 cc217-8W
Miss McIntosh

To ask the Secretary of State for Culture, Media and Sport what assessment he has made of the impact of proposed taxes on the London art market. [99520]

Dr. Howells

I have been asked to reply.

An independent assessment of the potential impact of artists' resale right (droit de suite) carried out earlier this year concluded: that by 2005, sales of works eligible for the right could fall by as much as 78 per cent. (from –280 million to –61 million) resulting in a loss of earnings by British auctioneers and dealers of –57 million per annum; and that sales of all works (eligible and

Table A: DSS annually managed expenditure
£ million
Projections
1999–2000 2000–01 2001–02
Retirement Pensions 37,514 38,280 40,214
Christmas bonus 120 121 122
Widow's benefits 976 946 1,124
Jobseeker's Allowance (Contribution-based) 522 543 560
Incapacity Benefit 7,028 6,942 7,080
Statutory Sick Pay 28 29 29
Maternity Allowance 39 46 56
Statutory Maternity Pay 562 587 618
Guardian's Allowance and Child Special Allowance 2 2 2
Non-Contributory Retirement Pension 27 26 26
Non-Contributory Christmas Bonus 16 16 17
War Pensions 1,230 1,161 1,122
Attendance Allowance 2,821 2,894 3,067
Invalid Care Allowance 805 827 879
Severe Disablement Allowance 1,017 1,028 1,041
Disability Living Allowance 5,611 5,845 6,294
Disability Working Allowance 44
Industrial Injuries Disablement Benefit 744 767 810
Industrial Death Benefit 51 50 49

non-eligible works) could fall by up to –750 million (23 per cent.), putting thousands of jobs at risk, as vendors placed the whole of their business elsewhere to avoid paying resale royalties on that part of the lot subject to the right.