§ The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mr. Chris Mullin)The British Council, although not a Government Department, receives a substantial grant-in-aid from the Foreign and Commonwealth Office. The Council regularly organises or sponsors exhibitions overseas of works of art loaned from National Galleries and private collections in the United Kingdom. It provides certain assurances or guarantees in respect of loss or damage while these works are on loan.
In the six-month period ended 30 March 2003 the British Council provided such assurances to 4 national lenders and undertakings to 171 private lenders. The value of the contingent liabilities that remained outstanding as at 30 March 2003 in respect of national lenders was £300,000 and £3,703,862 in respect of private lenders.
Following a recent review, HM Treasury, the Foreign and Commonwealth Office and the British Council have agreed to a revision of the Government art indemnities arrangements for artworks loaned to British Council exhibitions overseas. The revised scheme, which comes into effect on 1 April 2004, has three main features. The maximum total liability available to the Council at any one time will be £50 million (compared with the current £70 million). The £50 million limit does not include "high value" exhibitions (i.e. single exhibitions valued at £30 million or over), which are treated separately. In the case of "high value" exhibitions the Council will submit proposals to the UK's Public Diplomacy Strategy Board and HM Treasury for approval at least two years in advance. For all exhibitions the Council will have to show evidence of having approached the Government of the host country for cover and of having sought sponsorship for commercial insurance.