Plans to ensure artists get a 5% royalty cheque when their work is resold have been proposed by the Culture and Heritage Ministry. The arrangement is already in place in around 50 countries, including Britain and Ireland where royalties continue to be paid to an artist's estate for 70 years after death.

A discussion document has been issued for public comment.Plans to ensure artists get a 5% royalty cheque when their work is resold have been proposed by the Culture and Heritage Ministry. The arrangement is already in place in around 50 countries, including Britain and Ireland where royalties continue to be paid to an artist's estate for 70 years after death.

A discussion document has been issued for public comment."In tackling this complex issue, Labour is honouring another election promise to examine international developments relating to resale royalties for artists and their possible application to New Zealand," Culture and Heritage Minister Helen Clark said.

"We are also very aware of the significant growth in the local art auction sector, with total sales across our six main art auction houses alone doubling over the past decade.

"Sales reached a peak of nearly $19.5 million in 2003 and have settled back to around $14 million for each of the past two years. Art commentators predict another surge in New Zealand art auction sales in the next year or two."

Associate Minister for Arts, Culture and Heritage Judith Tizard said international practice showed the arrangement tended to apply to work sold through art market intermediaries, such as dealers and auctioneers. Works sold privately were not usually included.

"A resale royalty right helps address the limited access to economic benefit which visual artists derive from creating an original work. The original sale of a work is currently, often the only real chance an artist gets to benefit from that creation."

Specific issues in the discussion paper include the range of art works covered by a scheme, the royalty rate, who would be liable for payment and which agency or agencies would collect the royalty.

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