Australia’s Michael Reid Explains the Essential Role Private Collectors Play and Why the Government Must Be Sure Not to Hamper Them.
The Australian art world is in the midst of the perfect storm. Interest rate rises in March and April, the Global Financial Crisis, the botched implementation of the resale royalties scheme; the further botched implementation of the resources tax (and the consequent biggest fall in the stock market in 18 months); the Cooper Review into Superannuation; the election campaign (when traditionally retail spending comes to halt); the end of financial year and the recent school holidays have all taken their toll. Happy days are not here again.
A large number of people are spooked by the sheer volume and mix of financial news, coming from different directions and at the same time. As a result of all this unexpected coming together of events they have shut down all non-core financial and social activities. God I would hate to be a restaurateur in this climate.
In terms of the Australian art market, private collectors are anxious. Irrespective of the merits of resale royalties (and I am on record as a supporter) and the Cooper Review into Superannuation (another area crying out for much closer scrutiny) the result is that private collectors feel under siege.
The endeavours of private collectors are vital to the future of our public galleries and their significance must be impressed upon the Treasury. While governments must do what they have to do, the method of implementation of their policies and their proper explanation are as important as the policies themselves. Governments need to be gentle and do no evil.
