NUNAVUT
Theresie Tungilik says Inuit artists have been missing out on resale royalties and it's time that changes.

The late Cape Dorset artist Kenojuak Ashevak's Enchanted Owl is often used as an example of why the Government of Canada should join 93 other countries to legislate artist's resale rights. Her print originally sold for $24 and was later sold at an auction for $60,000, with Ashevak receiving nothing at resale. - NNSL file photo

The Canadian Artists Representation (CARFAC), a national association of visual artists, have been lobbying the federal government since 2011 for a five per cent royalty payment, to be paid to artists when their work is resold.

"Ninety-three countries abide by this law, and Canada being one of the peaceful countries should really adopt artist's resale rights and make it law in Canada. I can only see benefits finally going back to the artists," said Tungilik. The Rankin Inlet artist recently joined CARFAC as a board member.

Despite recommendations from the standing committee on finance that the government of Canada amend the Income Tax Act and the Copyright Act to allow such a payment, there was no sign of a change in the 2017 budget announcement.

"It's a right that would give royalties to visual artists at second or third or whatever resale of their artwork," said Tungilik.

Pat Feheley, a Toronto gallery owner which specializes in Inuit art, says Inuit art is far more complicated than other art for artist resale.

"For Inuit art, it's just an insane situation because the standard distribution system is the artist sells to the Co-op and/or the wholesaler. So that's a sale. The Co-op/wholesaler then sells to the dealer. So that's a sale. The dealer then sells it to the client. And that's a sale. By that time, officially, artist's resale rights would have been collected twice before the sale to a collector," she said.

"Someone's got to solve this peculiarity of the Inuit art market where it's basically been sold three times before it goes to a collector."

Feheley says people feel like they are being taxed, again.

CARFAC executive director April Britski disagrees. "What we're looking for isn't a tax. It's a royalty for artists," she said.

Artist resale 'naive'

But it wouldn't be a royalty for every artist, or every piece of art. CARFAC suggested that only pieces that resell at more than $1000 would receive the 5 per cent royalty.

Britski says a study in the UK found that up to 60 per cent of artists wouldn't be included if the cap was higher.

"We have looked at different ways in which eligibility makes the most sense and $1000 is what we've come up with," she said.

But Feheley tells it differently.

"With the exception of a handful of artists whose works go very high, primarily who are now deceased, much of what's sold publicly is not covered under the $1000 limit. It's not necessarily going to help a sculptor in Gjoa Haven at all," she said.

The late Cape Dorset artist Kenojuak Ashevak's Enchanted Owl is often used as an example by CARFAC of why the Government of Canada must join the 93 other countries to legislate artist's resale rights. Her print originally sold for $24 and was later sold at an auction for $60,000.

"The simplistic 'this is going to help all artists' is a bit naive," she said, adding that on many online auction sales, prints, even Kenojuak prints, are selling for well under $1000.

"In travelling in the Arctic a lot of the artists who had heard of it said, 'this is great. Every time a piece sells, I'm going to get money.' The reality is that's really quite naive because it's only if it's resold on the secondary market and if it sells high enough," said Feheley.

It also only counts in Canada.

"What has been seen in other countries is that a lot of the commerce leaves the country and goes to a country where the resale right is not in effect or a certain amount of sales go underground, which means that taxes aren't collected," said Feheley, adding that in the United Kingdom and Australia, it's been noted to have a "depressing effect" on the secondary art market.

Britski disputes this, arguing that the "hassle and cost" of exporting art would mean the resale right doesn't have a "huge impact."

Government support needed

"If you were to buy a $5000 sculpture, the cost of exporting and shipping would be substantially higher that the $250 in royalty to the artist. It would be way higher," said Britski.

CARFAC will renew its lobbying effort in the fall, an effort endorsed by the Government of Nunavut several years ago.

Tungilik says artists can't get it done alone and need the support of members of Parliament.

Nunavut MP Hunter Tootoo stated he would support a bill if presented.

"It is right and proper to compensate the artists fairly for their work. This would include the proposed five per cent levy on re-sale items," he stated in an email to Nunavut News/ North.

It can't come soon enough for some artists.

"We're completely missing out. Until it becomes law in Canada, the visual artists will continue to miss out," said Tungilik .

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