From Summer 2005 newsletter

A recurrent issue:

Over the years, many artists have complained to me about the relationship with their galleries. These complaints have related to such issues as sums payable to galleries for non-gallery sales, commissions or prizes and the reluctance of galleries to disclose the purchasers of artists' works. However, the majority of complaints I receive relate to long delays in payment and the lack of regular accountability and reconciliation of artist's account with the gallery.

Let me say at the outset, quite unequivocally, that I am a great supporter of the gallery system. I believe artists are probably the worst sales people and that commercial galleries provide the best avenue for artists to reach an audience, to promote the artist and to maintain and improve prices of their work.

An art gallery is a unique type of business. It has an advantage compared to most other retail businesses in that it does not buy stock, as most works are left by artists on consignment. In the past, this enabled some people with limited capital to open galleries, relying on income from exhibitions to cover their overhead expenses. However, in the early 1990's the art market became depressed, sales dropped dramatically, and some galleries had to close their doors, owing artists substantial monies.

Fortunately, over the past decade with the general economy becoming more buoyant, most commercial galleries have been able to meet their regular payments to artists, as well as their other commitments. I am, however, concerned that if there is a downturn in the economy and with the consequent flow on to commercial galleries, it may be artists who will suffer again.

Artists generally find it distressing and distasteful to request payment from their galleries and many are reluctant to confront them. To help alleviate this impasse, for the past decade, I have been advocating that galleries maintain a Trust Account for their artists' dealings. Some time ago, on behalf of the Painters and Sculptors Association, I made a submission to the Contemporary Visual Arts and Crafts Inquiry in relation to such Trust Accounts. My recommendation received endorsement in the Myer Report.

In October 2003 the Australian Commercial Galleries Association, NAVA and the Australia Council entered into a Code of Practice regarding the relationship between artists and their galleries, which, inter alia, recommended that the proceeds of a sale should be lodged into an account separate from the gallery's funds. The Code also recommended that if a gallery did not maintain separate accounts it should disclose this fact in writing to its artists. Sadly, to date I have seen no evidence of either a separate account or a notification from any gallery.

I still receive complaints about gallery management that, in the main, relate to the following issues:

• Drip feeding of payments over a period of months after an exhibition, with the gallery sometimes citing non payment from purchasers, but at other times giving no reason.
• Payment for works only after request is made for their return by the artist, with a memo in the order of "you wouldn't believe it, but we sold your work only last week!"
• No documentation for commissions obtained by the gallery for the artist.
• No regular reconciliation of artists works and accounts
• Galleries giving discounts or extended terms to their clients without consultation with their artists.
• Galleries who prepare statements with incorrect understanding of GST.

To help air some of these issues further I intend to arrange a meeting between representatives of the Commercial Galleries Association and the Painters and Sculptors Association in the near future. With this in mind I would like to hear from our members about their experiences with galleries - as individual anecdotal evidence will enable us to highlight some of the problems faced by artists in general.