Government’s Killing Music

The Spanish government is killing the music industry by persisting with a 21 percent VAT rate on cultural products, according to the closing panel at the PrimaveraPro conference.

At the beginning of September the cash-strapped country raised VAT on cultural goods from 8 percent in a move that has been heavily criticised by the cultural sector.

“The culture industry generates 503,700 jobs in Spain and account for 4 percent of GDP. The action taken by the government to increase VAT on cultural goods and services for 13 points (from 8 percent to 21 percent) contravenes the provision of Article 44.1. of the Constitution,” the International Federation of Arts Councils and Cultural Agencies complained.

Article 44.1 says: “The public authorities shall promote and watch over access to culture, to which all have a right.”

The PrimaveraPro panel, which examined the state of the European live music sector, concluded that the policy was “crazy” and “killing the music industry,” explaining that numerous music companies have disappeared altogether in the nine months since the higher rate was imposed.

The Live DMA European Network, which represents more than 800 venues and festivals in Spain, France, Belgium, Germany, The Netherlands and Denmark, has issued a statement telling the Spanish government to do something about it.

“The reduced VAT is the minimum we expect to support culture in Europe. Most of the European countries use reduced VAT as a simple and effective instrument for cultural stimulation,” says a note on the DMA website.

“To increase VAT on cultural activities, and notably on live music sector, means killing your own culture.”

The demise of the music industry wasn’t evident at PrimaveraPro, which saw delegate numbers rise 42.5 percent to 1,995 – 60 percent from outside Spain.

The conference panels mainly centred on three main themes: the role of artists in their careers; new business models for the music industry; and festivals and live music.

Within these parameters, panels over the three days examined everything from profitable touring for independent artists to the festival “crisis,” from streaming to the new music media economy.

Panelists included artists such as Buzzcocks’ Pete Shelley, producer/artist Ethan Johns and Jon McClure (Reverend and The Makers).

Another panelist was former PiL, Nine Inch Nails and Ministry drummer Martin Atkins, who ended his panel – titled “Welcome to the music business – you’re fucked” – by launching muffins into the crowd.

Primavera Sound festival, which was on the city’s Parc Del Forum May 22-25 and runs more or less in parallel with PrimaveraPro, smashed its attendance record for the third time in four years. It attracted a four-day crowd of 170,000 for a bill that had Nick Cave & The Bad Seeds, The Jesus and Mary Chain, James Blake, Animal Collective, Tame Impala, Dinosaur Jr., Hot Chip, and Grizzly Bear.