Page 1 of 3
From:
Sent:
08 September 2008 14:09
To:
Subject:
FW: Advice: Auction at the Aquarium Gallery
Follow Up Flag: Follow up
Flag Status: Red
From: Margaret Lynch
Sent: 10 April 2008 17:23
To:
Cc:
Subject: Re: Advice: Auction at the Aquarium Gallery
Many thanks for this advice which is much appreciated and will greatly assist us moving forward with the
London campaign.
I can confirm the following:
The Party is not aware of any additional relevant facts or circumstances to those set out above; and
In particular, the Party is not aware of any facts, circumstances or information suggesting that the
figure of £75,000 is not a reasonable reserve price for such an artwork by Banksy, or that the reserve
was set to include any element of discount or donation.
Best wishes
Margaret
Margaret Lynch
Compliance Manager
The Labour Party
39 Victoria Street
London SW1H 0HA
Tel: 020 7783 1376
Fax: 020 7783 1506
Mobile:
From:
To:
"Margaret Lynch"
24/09/2008
Page 2 of 3
Date:
10/04/2008 17:06
Subject:
Advice: Auction at the Aquarium Gallery
Dear Chris and Margaret
Following my various discussions with you about the art auction at the Aquarium Gallery, I am writing to
confirm the Commission's guidance as to the valuation of artworks auctioned, based on the information you
have provided to us.
Your request was made because one of the artists, Banksy, is anonymous and therefore not a permissible
donor. This means that the Labour Party is not able to accept any funds from the auction attributable to the
value of the Banksy artwork, and you have requested advice on the valuation.
I gather that the facts are as follows:-
Banksy donated an original piece of artwork for the auction for the benefit of the London Labour Party,
and placed a reserve price of £75,000 on it (through his agent), as a fair value with which to go into the
auction; and
You have obtained confirmation of the above from Banksy's representatives which you have supplied
to the Commission; and
The artwork was sold for £195,000 to a permissible donor ("the purchaser"); and
Although the purpose of the auction was to raise funds for the Labour Party, it was organised and run
by the Aquarium Gallery and not by the Party, so that funds have not been transferred to the Party or
used for the Party's benefit, pending resolution of this particular issue.
In line with our guidance in
Donations and loans: guidance for political parties para 6.5, the donation from the
purchaser is £195,000 less the value of the artwork, and can be accepted by the Party.
The Commission recognises that the value of individual pieces of artwork can be difficult to establish with
precision, given its nature and the frequent use of auctions as the means of sale, and that different valuers
can reach different conclusions.
In the circumstances, our view is that it seems reasonable for you to report the transaction on the basis that
the market value of the Banksy artwork is £75,000. This is based on the facts as above, and the following
assumptions:-
The Party is not aware of any additional relevant facts or circumstances to those set out above; and
In particular, the Party is not aware of any facts, circumstances or information suggesting that the
figure of £75,000 is not a reasonable reserve price for such an artwork by Banksy, or that the reserve
was set to include any element of discount or donation.
If any of the facts or assumptions are incorrect, please let me know as this may change our view.
Please note that this guidance is not a formal advisory opinion from the Commission, but represents our
guidance on the situation presented to us. If you have any questions, please call me.
Kind regards
(Advisory Opinions)
The Electoral Commission
Trevelyan House
24/09/2008
Page 3 of 3
Great Peter Street
London SW1P 2HW
Tel:
Fax:
Textphone:
www.electoralcommission.org.uk
www.aboutmyvote.co.uk
Democracy matters
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24/09/2008
