Challenged By China, France Pitches Plan

To Strengthen National Art Market

AP – CHALLENGED BY CHINA, FRANCE PITCHES PLAN TO STRENGTHEN NATIONAL ART MARKET

AVV 4-7 #324779

By Angela Doland

Associated Press Writer

PARIS (AP) — After watching the fashion industry go more global and seeing fierce competition from New World wines, France is determined to resuscitate another stagnant national treasure: its art market.

Calling the decline “undeniable,” Culture Minister Christine Albanel unveiled a plan April 2 that includes zero-interest loans for art buyers, more tax breaks for corporate art buyers and measures to free up strict regulations on the auction business.

While France’s museums pull in millions of art viewers, French auctioneers and gallery owners have long been struggling to attract art buyers. A study this week from market watcher Artprice crystallized their fears, with China taking France’s traditional No. 3 spot in worldwide art sales.

The United States had 41.7 percent of sales in 2007, Britain 29.7 percent, China 7.3 percent and France was flat at 6.4 percent, the study said. A year earlier, China had 4.9 percent of the market, while France also had 6.4 percent.

Contemporary art in France is in especially bad shape: France had a mere 2.8 percent share of worldwide sales in contemporary and Modern art last year, Artprice said. On top of that, the culture minister said art was being “relentlessly drained” from the country.

“For every work that is imported [to France], two works are exported,” she said.

The government’s proposals must still be approved by parliament. Albanel’s recommendations were based on a report from art insiders led by Martin Bethenod, who runs FIAC, an international contemporary art fair in France. Auctioneers and gallery owners said it was a big step forward.

“This is coming really late, but at least it’s here now,” said Herve Chayette, president of the Symev union of French auction houses.

One sign of how slowly change has come: Only in 2001 did France allow foreign companies like Sotheby’s and Christie’s to run auctions in the country.

The art market sector employs at least 50,000 people in France, Albanel said. Auctions bring in about $2 billion a year, and private sales are probably five times that, she said.

One goal of Albanel’s plan is to encourage the middle class to buy original artwork. While people often think of art as out of their reach, Albanel said the median price of a sale in France is about $11,000.

The highlight of the plan is based on a program called Own Art. Launched by Arts Council England, that plan provides for zero-interest loans for people who buy contemporary artworks from any of more than 250 venues in the program.

Albanel said French banks could promote the program to clients, “which would help reach an audience that is often not familiar with galleries, auction houses and antiques dealers.” In exchange, banks would get tax breaks for corporate art patronage. Exact details, such as the maximum loan, are still being worked out.

Another measure would use tax deductions to encourage small businesses to buy art to display in their buildings. Under current French law, companies can deduct the price of contemporary artworks they buy, but the ceiling is 0.5 percent of their annual turnover — making the deal less attractive for small companies.

Albanel said that ceiling would be raised for small businesses. Tax deductions for art purchases would also be available to the first time to the offices of doctors, architects, lawyers and accountants, she said.