Government and Culture
The government makes an effort toward the advancement of art through

the National Gallery (acquisition and exhibition); the National Design
Branch of the Department of Industry (consultation and promotion); the
Canada Council and the Centennial Commission (financial grants); and
the Department of Indian Affairs and the Department of National
Resources (instruction and marketing assistance for Indians and

Eskimos).

Assistance is directed primarily toward the development of profession-
alism in the arts. Provincial governments support the same cause.

Intention of Tax Relief

Paintings and sculpture have been declared exempt from import duty,
and the government has been successfully petitioned to exempt from
excise tax two dimensional art and any sculpture considered by the
director of the National Gallery to be "'of a cultural character".

(See appendix I).

The definition of art must be broadened. It is wnmreasonable to favour
painters and sculptors.

Moreover, for the purposes of taxation there is a vast difference
between the original creation of an item and the reproduction of it.
This has been recognized in the case of blacksmiths, portrait
photographers, and others. (See appendix J).

While it is true the contemporary artist, whatever his medium, makes
increasing use of modern tools, the cost price of his product is fixed
above all by the time he puts into each piece. The value of his product,
the art in it is the individuality of a unique thing that, completed, may
be reproduced mechanically through a commercial manufacturing
process. The first operation is hand production; the second, mass
production.

Alternatives
In the present situation, an artist must elect one of four alternatives:
(1) He may limit his production to $3,000 annually in compliance

with Section 2(4) of the General Excise and Sales Tax Regulations,
8. (see scpentix and earn his living doing other work.