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Section 7 National assets

7.1 Our remit

Consideration of national bodies and infrastructure was referred to in several areas of our remit, namely:

"Consider the designation 'national' and how it might be more appropriately determined

Give special consideration to the national companies and how their potential might be realised more effectively

Comment on the role and potential of the cultural sectors' international presence

Assess the adequacy of the current built infrastructure of the cultural sector

The Commission's findings will be informed by the diverse cultural and linguistic communities within Scotland, with particular regard to Gaelic language and culture."¹

7.2 Our understanding

Scotland has a wonderful range of national treasures, chief amongst them being the talent and imagination of its people. There are many areas in which the country is distinctive and unique - languages and dialects, collections of artefacts, historic and contemporary buildings.

Our understanding is that the country should:

• maximise access to its national treasures for all its citizens

• ensure the full range of our cultural assets are recognised and supported

• realise the international potential of our national cultural assets.

7.3 Consultation

In relation to Scotland's national assets, we received many contributions from stakeholders and specialists in the various disciplines across the sector. We give a précis of our consultation at the beginning of each main heading rather than collated here. This section will consider the various elements of the remit within the following categories:

• the designation 'national'

• national performance companies

• touring

• box office

• international presence

• creative individuals

• built environment

• language.

7.4 The designation 'national'

7.4.1 Our consultation

The Commission found enthusiasm to begin a debate about what constitutes 'national' and whether it is a title that should be earned, conferred, or applied for. We heard suggestions that to be 'national' meant an organisation should:

• be international

• tour throughout Scotland each year

• be excellent.

We were reminded, however, that there are already a number of organisations, and individuals, who conform to this description but do not enjoy either the title 'national' or a level of public funding commensurate with a few 'national' bodies. In particular, we believe the issue of recognising and supporting creative individuals of outstanding merit is extremely important. We address this in 'creative individuals' later in this section.

Our desk research revealed some interesting international comparators, particularly Australia.

7.4.2 International comparators

In Scotland, and England, the title or status 'national' has no formal or legal meaning. In the United States, Congress confers the appellation in recognition of continuing prestigious performance by a company. The funding mechanisms in the two countries are, however, very different. In Scotland, the national companies are all dependent on public support whereas in the USA, the National Opera in Washington receives no performance grant, although it is hosted by the Kennedy Centre.

In many countries, as in the US, the term 'national' denotes excellence, profile and impact. The Commission was impressed with the approach taken in Australia. Over the last decade, Australia has given a lot of thought to what constitutes a national company. A definition of 'national' or a set of duties that characterise national companies is essential for setting up separate, longer-term funding arrangements for those performing arts organisations that are to have 'national' status. The key indicators used in Australia include:

• having a national/international reputation for excellence

• demonstrating the highest standards in performance or cultural services

• showing an ongoing commitment to the development of the art form

• showing evidence of a sizeable increasing and geographically well-spread audience base (and therefore a regional significance)

• expanding the company's reach through touring (and therefore being of significance to the nation)

• demonstrating an ability to be financially viable and developing external sources of income.

A company must also fall into one of four designated categories, each of which has detailed criteria according to the role it performs through its core activities. The categories are:

• international companies

• Australian flagship companies

• resident or touring specialist companies

• state (regional) flagship companies.

The Australian government, as part of its Creative Nation policy in 1996, acknowledged the special requirements of its largest arts organisations as 'significant business enterprises' and committed itself to provide predictable and stable funding for such bodies. To this end the Australian government established a separate funding mechanism for major performing arts organisations with national status.

At the time, the government agreed that some organisations might require a funding injection to overcome financial difficulties before being admitted to a newly-formed Board of National Companies. ² This system was intended to remove the need for ad hoc requests for assistance from the government and to give Australia an artistically vibrant, accessible and, above all, viable arts sector.

Australian Board of National Companies

The Board set up in Australia to administer the system supports the pursuit of artistic innovation and excellence and assists the companies to deliver broad geographic and demographic access. It also has a strong business management focus. To qualify for longer-term funding, the major organisations must enter into a performance agreement based on a business plan covering the period of funding. Organisational performance is reviewed before the funding arrangement is renewed, and organisations that fail to keep to the agreement are removed from the Board and return to a short-term funding arrangement.

7.4.3 Our thinking

We found the Australian system impressive. It has secured strategic operation and audience focus from companies in return for guaranteed funding within a system that reviews performance and can in extremis withdraw financial support. Critically, all the parameters are common and transparent. The rules are known and understood and the aims are common to all the performing companies. We were persuaded that the Australian model provides clarity of expectation and delivery from both sides that it would be beneficial to adopt in Scotland. We were attracted by the example they set that membership of the national board is not based on historic lines but on that of performance against agreed criteria. We believe this a fairer and better way for the companies, a more efficient use of public money and could also create a dynamic flow that would enhance the creative output of cultural organisations.

We believe national status, defined by Parliament, should be earned when established criteria are satisfied and proper resources available. The category of 'national' company ought to be open to increase in numbers - for example, the Edinburgh Festivals might well become national companies, or the Scottish Ensemble, or a producing theatre.

We therefore recommend the Scottish Executive begin preparatory discussions with existing relevant agencies and companies with a view to adopting an approach based on the Australian model.

7.4.4 A consistent approach

We believe the approach advocated for the performance companies is relevant for all other areas of national cultural representation. The model of establishing clear indicators, monitoring the quality of delivery, and encouraging collaborative working across fields of shared interest is good practice that can be adopted more broadly.

In the following sections we have taken a consistent approach to the issues of representation and co-ordination of the country's treasures at national level. This has been applied across our national performance companies, our creative individuals, our languages and our built environment.

National Boards

We advocate the creation of five national coordinating bodies in total (referred to as National Boards for the convenience of this report but with different titles in practice). They should share a common purpose - to maximise the effectiveness of their constituent parts and operate collaboratively to the greater benefit of the citizens of Scotland.

In practice, the National Boards would operate independently of one another. However, we believe they should be serviced from a single source. This should be the Scottish Executive or its appointed agency. Options for this agency are outlined in Section 10. The relationship is illustrated below.

7.5 Scotland's national companies

7.5.1 Our understanding

The Commission understands the responsibility of national companies is to serve the Scottish public, building their enthusiasm for the performing arts at the highest level. We believe public support demands public benefit and that our national companies have a duty to work in partnership, at home and abroad. We do not believe it appropriate for repertoire to be part of our deliberations other than in the general context of encouraging discussion between programmers, the best from Scottish creators and performers and ultimately offering the best to the audience.

As noted above, we believe that the category of 'national company' should be earned, and that qualification for the title should be clear and explicit. Consequently, this may involve rationalisation of those who have, or hope to have, the title 'National' or 'Scottish'.

We understand our remit was to focus on five performance companies designated 'national' in the SAC funding system - the Royal Scottish National Orchestra, Scottish Chamber Orchestra, Scottish Opera, Scottish Ballet and the National Theatre of Scotland - and not those who currently have national or Scottish in their title. We have, however, extended our discussions and deliberations to include the five national youth companies. We believe them to be an integral part of our national performance company infrastructure.

7.5.2 Our consultation

The Commission solicited views on the five national companies from the arts' sector, the stakeholders such as the SAC, theatre managers and from the companies themselves. We convened a facilitated meeting of the chairs of the five national companies and the chairs have met on several occasions subsequently to discuss issues of mutual interest.

It is clear from the responses we received that there is impatience within the sector for an equitable solution to the persistent financial crises of Scottish Opera and Scottish Ballet that are so frequently aired in public. In some cases, there is also resentment of the perception that those companies receive preferential treatment from the Scottish Executive as a result.

In addition, we held two meetings with the chief officers of the following national youth companies:

• Scottish Youth Theatre

• Ydance

• National Youth Orchestras of Scotland

• National Youth Choir of Scotland

• National Youth Pipe Band.

At present the Scottish Arts Council recognises and funds the five "national" companies. The four musical companies have established themselves as national companies on an historic basis. The National Theatre has been created to perform a job with a national locus and with concomitant aspirations. The SAC also funds four of the five youth companies (not the National Youth Pipe Band). The BBC Scottish Symphony Orchestra ( SSO), a national orchestra of some standing, is funded directly from the BBC and is therefore outwith the realm of public sector cultural policy, although it is no different from the audience perspective.

Scotland's national companies are an important part of our cultural resource and profile, and together they receive 75% of the Scottish Arts Council total grant-in-aid from the Executive. The current historic funding model, however, is perceived to have failed. The recent history of persistent overspending at Scottish Opera and the fraught artistic transition at Scottish Ballet brought media attention that affected the entire sector. As a result, there was dissatisfaction within the broader arts sector at the convulsions within companies receiving the largest proportion of the grant-in-aid from the SAC.

Venues across the country have expressed disquiet at:

• the lack of consistency in touring policies within the national companies

• the withdrawal into the Central Belt of Scottish Opera

• inconsistency in the use of SAC subsidy. ³

We acknowledge that the present chairs have changed or are changing the direction of the national companies and are already taking further steps to work in closer partnership. Although the five companies have begun to confer and discuss future strategy, there are still problems of funding, governance, touring arrangements, status and perception. The perception within the arts is of two large, relatively well-funded organisations that draw away additional funds and goodwill from the entire sector, though not all the national companies ever conformed to that caricature. In fact, the SCO and latterly the RSNO have shown good practice in their management and governance.

7.5.3 Governance

We believe it would be preferable to adopt a single definition of 'national' and to adopt consistency in the governance and accountability of organisations and individuals that are granted national status. This should be specified in a Culture Bill that would introduce provisions regarding the establishment of national companies on the same statutory basis. The present five companies, at least, should be constituted by Parliament. We are mindful that any proposed changes to the legal status of the national companies should be done in a manner that maintains charitable status.

Good working practice

We believe there is a need for a clear contract. In return for public support, companies should offer public benefits that are contractually binding. All national companies should have:

• common standards for governance

• clear objectives, values and responsibilities

• clear lines of reporting.

Performance against agreed indicators should be published with a clear understanding that national status can be forfeited. We acknowledge the concerns expressed to us by the companies, and others, regarding the prescriptive nature of some existing funding arrangements. Funding bodies should allow greater scope for interpretation of broader aims within a funding contract.

The Commission recommends every national company should outline how they will best achieve the following broad objectives as their basic condition of contract:

• inspiration: a commitment to enthuse and develop an audience for their artform; highest quality performance to international standards

• aspiration: repertoire and performance that cultivate leading creative artists, native and foreign

• ambassadors: reach across Scotland and abroad; figureheads for Scotland

• accountability: governance and conduct of the highest order; excellent stewardship of public funds

• responsibility: a duty to work with their artform colleagues throughout Scotland; to help develop national standards.

We also recommend that every national company is charged with upholding the values of:

• excellence

• quality.

Co-operative working

We believe that the national companies, including the BBCSSO, should work together to serve the audience. In our consultation they demonstrated that they have established a clear view of the future, believing they should be:

• taking a joint strategic overview of their own tasks and of the future of the sector

• sharing resources and some backroom functions

• planning together on matters of their built estate

• building audiences together.

National companies have an obligation to promote the very best Scottish talent whether that is performing, creative, production or resource talent. That can be achieved in a co-ordinated manner with the obligation to provide educational services. The latter may not necessarily be about educating, but certainly about facilitating education, real and virtual.

Board of Scottish National Companies

We recognise that there must be the highest standards of governance and funding contracts that set out clear objectives for the period ahead. As indicated above, the Commission proposes to use the Australian experience as a model for Scotland. The Board of Scottish National Companies would be statutory and would comprise members from all the national companies.

We therefore recommend the establishment of a Board of Scottish National Companies to:

• provide a forum for national companies to communicate and co-ordinate their activity, plan strategy and discuss repertoire

• co-ordinate professional contract negotiation and management

• ensure that all are contributing to delivery of standards to which funding is linked

• improve governance and organisational performance

• promote the case for investment in the national companies.

We believe there is an implicit obligation for each of the five companies to foster interest and engagement from young people and that formal relationships should be established with the national youth companies and RSAMD.

7.5.4 Funding

Delivery

Unlike the National Institutions with collections who receive their grant-in-aid in direct negotiation with Scottish Ministers, the national performing companies are funded through the SAC. Nevertheless, there have been regular breaches of the arms-length principle. We believe there should be a consistent approach to funding national bodies and agencies and we have outlined these in Section 10 of this report. Our preferred option is for funding arrangements to be administered at arms length from government by the principal agency in the chosen infrastructure option.

Level

In the last ten years, the SAC has received considerable uplift in ring-fenced monies but core-funding has diminished. The Centre for Cultural Policy Research has reported this pattern as follows:

"Compared with England, the real terms growth in basic grant in aid to the Scottish Arts Council, that which funds the core infrastructure of the arts, is negligible… If we look at how grant in aid is projected to grow over the period 2003/4 to 2005/6 then basic grant in aid to the SAC is projected to increase in real terms by 1.4% while basic grant aid to ACE will increase by 12.1%"⁴

As already noted in Section 3, excluding the ring-fenced project funding to SAC (Youth Music Initiative, National Theatre etc) and ring-fenced funding to ACE (Creative Sparks) the gap in SAC core funding needed to restore parity with levels enjoyed by ACE is £10.5m. ⁵

The Director of the SAC summed up the current position:

"Current grants pay for the basic provision so the 'leverage' which an additional sum would deliver is significant because it could all go towards the art as opposed to 'maintenance'. This level of optimum effect would only be achieved after deficits had been paid off and a level of funds provided for working capital".
Graham Berry 2005

When funds diminish the artistic product is cut because the main overheads, staff and estate costs, are fixed. When product diminishes the relationship with the audience is jeopardised. Salaries of performers in Scotland are lower than for senior national and royal companies in England. The attraction and retention of first rate players is, therefore, a continuing problem.

The Commission accepts the evidence that the national companies and other core- funded organisations within the SAC have been operating on diminishing funds in real terms. The national companies may well be adrift by several millions. The baseline funding for the national companies and the other viable core funded organisations must be raised in a joint exercise between the Executive, the SAC and the companies.

The efficient use of money within the companies must first be assured. The Commission recommends that a best value exercise should be undertaken in which:

• the national companies' estate (including the National Theatre) is reviewed and measures to produce long-term and short-term savings outlined

• plans are developed to share resource and administration

• the national companies should begin their association and joint planning immediately, producing a fully-costed national plan to enthuse the nation, create new audiences and show off the best talent available in Scotland

• in the context of that plan, there should be an independent review of the orchestral resources of the national companies. The Scottish Ensemble and BBCSSO should be included in the consultation process.

At the end of this process we believe that there should be enough public confidence in the companies to merit a substantial lift in baseline funding supplied by savings and by new monies. We would expect an immediate increase in product at a higher standard.

The Commission also recommends that in a related best value exercise, the SAC portfolio of core-funded organisations should be reviewed, with savings to be yielded not more than two years after the process is complete. Three year funding for the national companies would assist tremendously their ability to plan strategically and we recommend this is introduced.

We note the basis of the Australian success involved paying off all company deficits at the start of the exercise and we recommend this approach.

Developing income streams

The national companies should aim to grow the proportion of their revenue that comes from sponsorship, endowment and other private sector sources. We believe there is untapped commercial potential within the companies to more fully exploit their current resources - talent base, stored wardrobe, recording, and such like - and that identifying and exploiting these opportunities should be undertaken in partnership with the new infrastructure agency. Monies raised in this way should be regarded as development funding and not a substitute for core funding. Such activity should also be a precondition of any increased funding arrangement.

7.5.5 Education

Clearer pathways for those wishing to learn or perform at the highest level must be developed. This should be within a consortium approach featuring the national companies, the national youth companies, the RSAMD, and relevant regional bodies developed as part of the new infrastructure. National companies need to ensure effective relationships with both the higher and further education sectors and with the local authority community planning partnership clusters.

SCO have rightly been considered trailblazers in educational provision by the national companies. SCO's approach, and increasingly that of the other companies, is one based on lifelong learning. Education of young musicians is only part of what they do and that, in some respects, is about sustaining the profession. The majority of education work is about finding other ways of engaging people with music, touching their lives and enabling them to appreciate music. In that respect it should be considered as another part of the national companies' repertoire. This centrality, and integration, of education to the work of a company is essential.

7.5.6 International work

The national companies have an ambassadorial role in pursuing engagements abroad with repertoire that exhibits our best creative achievements. National companies should earn these engagements on merit but there is also a role for the Executive in using the national companies and indeed others as parts of cultural delegations.

We believe the proposed Board of Scottish National Companies should liaise with British Council Scotland and VisitScotland to ensure that there is mutual support in achieving their respective aims at home and abroad.

7.5.7 National youth companies

The five national youth companies - Scottish Youth Theatre, Ydance, National Youth Orchestras of Scotland, National Youth Choir of Scotland and National Youth Pipe Band - are a tremendous asset to the cultural life of Scotland, and have proven that consistently over a number of years on both a national and international stage. The national youth performing arts companies are experts in the field of performing arts with children and young people in Scotland, and as such their work is crucial to the further development of Scotland's cultural life and to the growth of a more culturally aware society. We note the exciting parallel national developments in jazz and traditional music for young people and would encourage their involvement in any forum.

Education

The national youth performing arts companies are principally concerned with arts education and performance, both within the formal education sector and outside of it. The range of opportunities offered by the five companies covers participatory work, performances both by young people and for them as audiences, in-service training for teachers and development programmes for talented young people all over Scotland. The Youth Music Initiative has enhanced the range of opportunities for the provision of music for young people, and for the youth companies in helping provide it. This would improve if consolidated into mainstream provision and funding. All school pupils in Scotland should have regular opportunities to work with the national youth performing arts companies, whether as participants in constructively planned, long-term workshops in schools, as members of selected orchestras, bands, choirs or performance companies and as audiences for performances. Schools often have difficulties identifying practitioners with appropriate skills to undertake teaching work. The national youth companies could assist by providing training and, perhaps as importantly, initiating a 'kite-marking' system to ensure quality.

Developing talent

Through intensive training courses the companies encourage the growth of skills and development of talent in those young people who have particular aptitude for and interest in their artform. In order to sustain this work, and to develop it on a long term basis, it requires a more stable funding and planning process. Retaining the best performing arts practitioners working with our young people would be greatly enhanced by an increase in opportunity for them to work in schools.

Strategic planning and funding

The system of planning and financial support for national youth performing arts companies could be rationalised and simplified in a joint planning process with key funders and policy makers. Such a planning and funding process could bring together the main sources of funding for the companies at a national level into a single agreement, removing the need for the arts organisation to conduct lengthy negotiations with a number of national bodies. A similar approach to funding individual participants aimed at developing talent would allow the national youth performing arts companies to offer to young people the same opportunities no matter where they live in Scotland. This could be achieved through a central bursary fund.

Status

There should be consistency in the treatment of the national companies (including those working with our young people), with a focus on funding and national overview planning for the cultural and arts sectors. This would be assisted by closer liaison with the adult companies, as recommended above. Also, the national youth performing arts companies should be offered more opportunities to represent Scottish Culture on the international stage, and opportunities to work together within Scotland.

Supporting the national youth companies

To address the strategic planning issues outlined above we believe a cross-departmental partnership should be established - a Youth Arts Strategy Forum - to consider the involvement of the youth arts companies in a number of areas: education, culture, health, justice, and tourism. The forum would include representatives from each of the national youth performing arts companies and from the appropriate Scottish Executive Departments, and other relevant agencies, and might meet twice per year. The forum could invite representatives from the national companies to create a co-ordinated strategy for educational and youth arts in Scotland.

There should be more training of artists in all artforms to work in schools and with community groups (tied in to the proposed Top-Up Qualification) to create a cohort of trained teachers and instructors. The youth companies should develop a nationally recognised 'kite-marking' service for trained instructors.

The youth companies should be considered as important cultural ambassadors for Scotland. Later in this section we recommend the creation of an International Unit within any new cultural infrastructure. This should ensure that the youth companies are able to respond to invitations to represent Scotland abroad.

7.6 Touring

7.6.1 Our consultation

We recognise that touring cultural activity throughout Scotland is a cornerstone of access. The Commission heard dissatisfaction expressed from all the main parties involved in touring performance work around Scotland - presenting venues, producers and touring companies - and these indicated urgent action is needed. There were few observations made on this issue from those concerned with touring the visual arts.

7.6.2 Characteristics of the sector

Presenting venues, such as the MacRobert in Stirling and Festival Theatre in Edinburgh, may receive money from the SAC or the local authority or both. Scottish promoters are small and include consortia-agencies such as PAN and NEAT. British promoters also bring shows to Scotland. Traditionally these big shows play in the few venues that can accommodate them. The subsidised theatre tends not to play in the big receiving houses such as the Playhouse in Edinburgh.

All touring theatre and dance companies receiving public funding are required to lodge touring schedules with the SAC. Smaller companies and some venues are not able to finalise their tours until three months before they go out. There is no consistency of financial arrangement and:

• the venue might pay a fee

• the producer might hire the venue

• a deal to split box office might be brokered.

Regarding public subsidy, in many cases there may be four sources of public subsidy: both presenter and producer may be receiving SAC grants and both may be receiving local authority grants, though from different sources. Some Highlands and Islands promoters operate on a voluntary basis. Touring companies also generate income from fundraising.

7.6.3 Key issues for touring

The following were outlined to us in our consultation as the key issues needing to be addressed:

• no guarantee of a consistent offer of high grade shows

• no single agency has a national overview, or responsibility, for touring

• insufficient audience data to help target marketing

• insufficient consultation between presenters and producers

• poor dialogue between some companies and venues

• gaps in the touring schedule can appear that are unbridgeable at short notice

• poor dialogue between touring companies leading to duplicated repertoire

• venues work to different planning schedules and smaller touring companies cannot therefore co-ordinate touring and marketing.

7.6.4 Our thinking

The Commission believes that a shared overview and common purpose in maximising the audience is needed, and that this can be achieved largely though better structured communication and through a joint focus on developing audience demand. We believe a system of brokering information and partners, a Touring Exchange similar to that pioneered in the Rural Touring Partnership, should be established. The Touring Exchange should liaise with national and international media and it should also help set up British and international tours. We believe also that the practicality of the Touring Exchange being primarily an online service should be explored.

All publicly funded companies should, as a condition of their grant, lodge information with the Touring Exchange. All commercial companies should be encouraged to use it and we would expect that the proposed National Boards of national performing companies, collections and creative individuals should work in partnership with the Touring Exchange.

The Commission recommends that a consortium led by the SAC and the Scottish Executive should develop the shape and operation of the Touring Exchange

7.7 National Box Office

A National Box Office ( NBO) is now possible for the first time because of improved technology. A number of organisations including the SAC have commended this approach to the Commission.

7.7.1 Our consultation

A National Box Office and a national one-stop 'What's On' arts and culture website were raised frequently during the Commission's consultation.

"We are severely hampered by the lack of co-ordination of ticketing facilities and particularly internet ticketing across Scotland."
RSNO submission

"The List magazine knows what culture is, get it online. Make a free place for people to look at it and stumble across sections that they may be interested in…There is already a network available to build on, the Scottish Cultural Portal. But we need to understand how people access information."
Delivery Thinking Group, 13 October 2004

"Find ways to make tickets for cultural activities available in supermarkets, garden centres, sports centres, health clubs."
Federation of Scottish Theatre submission

"We would suggest the development and rationalisation of web based services for the cultural sector. This could be achieved by building on scotlandsculture.org - as a one-stop shop for information on everything from funding sources, business/trading essentials, to what's on in different areas of Scotland…We would urge the development of a 'ticketscotland' online box office".
The City of Edinburgh Council submission

Existing examples

Different sorts of box office systems already operate in Scotland: for example, the Edinburgh Festival Fringe and the Booth, an online non-profit ticket sales agency, run by HI~Arts in the North of Scotland. The City of Edinburgh Council is also examining a collaborative on-line ticketing across Edinburgh to see if creating a 'one stop shop' facility for customers is viable and useful and Birmingham has developed citywide ticket and marketing systems. ⁶

7.7.2 Our thinking

We recognise that the audience expects and demands a one-stop booking facility, cultural organisations need the benefits of box office systems and the pooling of customer data is needed to allow organisations and policy makers to better understand their audience. Therefore, Scotland should develop an integrated National Box Office incorporating a national 'What's On' facility for cultural activity. This should be based around the internet, call-centre operation, and 3G technology.

Its operation should be 'customer-facing', and aim to boost the profile and sales of its contributing cultural organisations. The facility should be available for every cultural organisation - professional, commercial or voluntary - in Scotland.

7.7.3 A proposal for a national system

Different systems and standards exist around the country. Because some companies operate sophisticated systems with data capture and others have only paper ticketing meaningful analyses on regional and national bases are impossible. Internet ticketing has not helped serve customers better: some are charged for booking online, others are offered a limited range of tickets. Some venues avoid these problems by avoiding online. The customer suffers from these arrangements.

We propose a national system that is centralised and offers all venues a chance to participate. An essential feature would be successful procurement of a system with high functionality in ticketing, marketing and data capture and that included internet ticketing as a one-off licence payment rather than on a commission basis. The operators would be the venue staff across the country. Commercial organisations should be invited to join on payment of a membership fee. Existing cultural venues would save on software costs and benefit from increased ease of sale.

As a condition of contract, publicly funded venues would be required to use the system and set up set levels of data capture. Audience data would be available to the lead Scottish agency - proposed as Culture Scotland in Section 10 of this report - for research and report only. Individual venues would be responsible for data protection.

Benefits

A single website and/or telesales operation would:

• capture more public interest

• drive ticket sales for the sector

• publicise the breadth of the entertainment on offer

• drive sales to potential tourists outside Scotland

• make it easier to develop packages of offers and benefits

• produce audience data for development and marketing work .

A National Box Office will help develop new audiences and will in time reduce costs as electronic methods replace traditional marketing techniques and companies explore collaborative marketing and promotions. Organisations possessing box office systems have traditionally guarded their databases; the creation of a NBO would be predicated on trust and support with shared data becoming a collective and individual asset for the companies.

We recommend that the Scottish Executive commission a study that scopes the operation, costs, partners, and viability of a National Box Office (including a freefone service, and mobile phone access), and that such a facility be implemented in time for the first of the Executive's 'themed years' in 2007.

7.8 International presence

7.8.1 Our understanding

We understand that the potential of Scotland's cultural treasures, including its individuals, in promoting Scotland to an international audience should be maximised. We also understand that there is a fundamental benefit in sharing our culture and creative output internationally. Exchange of culture is at the heart of good global citizenship and peaceful coexistence - the creation of the Edinburgh Festival in 1947 was established on this principle.

We agree with a contributor from our Thinking Group who suggested the main benefit to Scotland of "exporting our culture" is international profile. This in itself can be used to assist rather than deliver parallel plans, for example to assist in the development of artists' skills; the development of visitor numbers; the creation of a foothold for industry abroad and the establishment or cementing of twinning arrangements.

7.8.2 Our thinking

Events

One-off events are useful means of highlighting the country and raising international profile. The 2003 international week at the Smithsonian in Washington was an excellent example of showcasing some of the best of Scottish culture to a huge international audience. There remains an issue of sustainability and follow-up. Arguably there is only benefit to one-off events if they demonstrate medium to long-term benefits. We found it difficult, however, to locate evidence that as yet measured such benefits.

Tartan Week

Tartan Week, or Tartan Day, in New York appears to be a successful way of raising profile in the north-east seaboard of America, using a combination of cultural and business events. Its shape we believe is transferable - a three day series of events within a week-long series of associated meetings and receptions. With some further work it would be possible to evolve a distinctive character of a 'Tartan Day/Week' event, and a team to deliver it, that could be rolled out in those areas or cities where Scotland is keen to establish or develop relations, for example Beijing. This may happen once or twice a year at most. We see no reason why such events cannot be one-off, or time limited i.e. over 3-5 years.

Capitals of Culture

2005 sees the start of a new programme of European Capitals of Culture. Each European country will hold the title for a year - the programme is set for the next 20 years. There is an opportunity to develop a 'Scotland Week' showcase which takes the best of Scottish culture annually to each Capital of Culture. Again, this could develop a distinctive character and set of skills to deliver it.

The Scottish Executive are looking to develop links with France following the Entente Cordiale exchange of cultural events in 2004. There are also Scottish Executive links with Tuscany and Malawi. There is certainly scope for cultural exchange with these countries. However, the Scottish Executive may gain more benefit from focusing on the type of larger event outlined above.

Institutes of Culture

For those areas where the Scottish Executive is keen to develop a sustained relationship, such as Washington and Beijing, and where it has, or is developing, offices we believe there is considerable merit in considering these office bases as Institutes of Culture.

We were impressed by the example of the Danish Cultural Institute. There are several of these small offices around the world (including Edinburgh) which seek to create partnerships at cultural, academic and economic levels with their host countries. They also periodically review the location of these Institutes in the light of developing foreign policy; some close and new ones open. For instance, they were one of the first countries to establish a link with Iraq recently through creation of an Institute office.

The SAC undertook research in 2002 that considered establishing a Scottish Institute in New York ( ScINY). It was an imaginative proposal whose principles and approach are worth revisiting in a broader context.

Sending our skills abroad

There are several cultural organisations and individuals who have been invited to work with groups in areas of Eastern Europe, such as Albania and the former Yugoslavia, to share their skills. For example, Scottish Youth Theatre spent time in Bosnia working with theatre groups to develop their skills, in organisation and administration issues as much as in theatre skills.

Scotland has a substantial track record in grass-roots development of cultural activity and a number of excellent practitioners, many of whom may be willing to spend time sharing these skills internationally. A more formal method of brokering such exchanges, and some financial resource to assist it, would be required to undertake this effectively.

Spearheading business

We outlined earlier the willingness of the cultural sector to work more closely with international missions to develop business. In our discussions with business we heard of their willingness to be partners. We believe more effective brokerage between the two partners is required.

Cultural Ambassadors

Many creative individuals were cited as examples of ambassadors for the country when touring abroad. Most felt that this was an unexploited area and we had several relevant contributions in our consultation, for example:

"When Phil Cunningham and Aly Bain leave 3,000 people in a concert hall in Chicago extremely happy it's an ideal time to sell them (the audience) Scotland."

"If Scotland is serious about wanting to get a business foothold in China and North America we're going to need a distinctive calling-card. Our culture's the one thing that distinguishes us from the rest of the competition. Why don't we use it more?"

The existing international touring, performances, exhibitions, and joint initiatives of our cultural sector should be maintained and enhanced. They are already, to a large extent, our cultural ambassadors. Ireland introduced this year an International Committee comprising various artists and civil servants to administer a budget of €2 million to assist Irish artists with international exchange. We believe existing budgets should be used to accommodate a similar level of support in Scotland.

Also, we feel there is merit in exploring further the value of identifying specific 'cultural ambassadors' who can provide heightened profile for Scotland and the cultural sector in international exchange. This might range from established figures such as Ewan Macgregor and Brian Cox, to a new generation such as Nicola Benedetti (who has already been recognised by UNESCO as one of their cultural ambassadors).

7.8.3 An International Unit

We were persuaded there are enough facets within the range of international liaison and exchange to justify a discrete entity within the cultural infrastructure. We do not believe that at this time it would benefit from a separate organisation. However, we recommend that an International Unit should be established within any new cultural infrastructure.

Its main functions would be to:

• Co-ordinate, together with Scottish Executive's External Relations Department and EventScotland, the major cultural events abroad, including Tartan Week

• develop the range and type of international events, including Capitals of Culture

• develop the Institutes of Culture concept

• broker relations between the cultural sector to:

  • Scottish businesses promoting abroad

  • international development opportunities

• develop a Cultural Ambassadors programme.

7.9 Creative individuals

7.9.1 Our understanding

The Commission believes a cornerstone for cultural activity in Scotland is our creative individuals and the work they generate and inspire. We therefore believe support and encouragement for the existing and aspiring creative individual is a key factor in delivering cultural opportunities across Scotland. Implicit in this is our acknowledgement of the inherent benefit to the individual, as well as to Scottish society, in developing, practising and sharing their creativity.

In this section we will focus on those who are, or seek to be, professionally engaged in the sector. The range of creative individuals is vast, from our high-profile performers to our voluntary dance teachers, part-time librarians and computer game designers. Although they share the common thread of creativity the practical application of that creativity is so varied it resists unitary classification or one-size-fits-all solutions.

We understand, therefore, that support for the creative individual is likely to require a variety of means of support, but we believe the sector would benefit from a single vision and a coordinated approach. The key issues are focused on two areas:

• raising the status and profile of the creative individual

• better supporting the creative individual.

Terminology

Given the breadth of our remit we found the term 'artist', although a convenient shorthand used by contributors and the media, to under-represent the breadth of Scotland's creative community and to possibly misrepresent our remit. For the purposes of this report, we have used two terms - the broad 'creative individual' and the narrower 'creator'. The distinction is important for consideration of some potential tax and support incentives (detailed below). Otherwise we believe the term 'creative individual' to be the most apposite.

We mean the term 'creator' to represent those individuals who originate work of literary, artistic, craft, musical, architectural, design or screen-based material.

The term 'creative individual' includes those who are 'creators' but is extended to embrace those who provide either a) a broad range of creative services - e.g. curator, programmer, designer, impresario, librarian, archivist, teacher; or b) an interpretation or presentation of original work - e.g. conductor, musician, translator, producer.

7.9.2 Our consultation

Written submissions

These were numerous and, although varied, shared common themes of under-investment and unrealised potential, together with difficulties with bureaucracy and low esteem for practitioners. The following views are indicative:

"Creative people often lack the skill to argue a political or a business case. Artists should be given training in marketing themselves as a business."
Aberdeen Public Meeting

"Artists should be regularly consulted during policy-making on subjects that concern them and their practice; the current dialogue between creative people and the Scottish Executive, should be an on-going and constructive debate to broaden our horizons and set far higher goals for society and its full cultural activity."

"We believe that artists would significantly benefit from VAT being implemented on their sales income calculated after deduction of gallery commission. We believe that core funded galleries should be required to develop marketing strategies for living artists work. In addition, providing incentives for private purchase schemes such as National Purchase Plan or Percentage for Art, would assist artists to personally increase their income. However pushing 'enterprise culture' where artists are seen merely to be commercial producers must be fought against. The integrity of art must be preserved. Education of and within the market place should be prioritized rather than lowering the integrity of the art."

"We believe that generously funded artists awards schemes, broadly delivered according to artistic value rather than the fulfilling of political objectives, is paramount in addressing financial Parity for artists. We believe that artists should be fully involved in award making decisions. The removal of SAC selection and appraisal committees which included artist representatives is seen as a totally negative move designed to remove evaluation from the sector itself, putting the base value further back onto data and management."

"We believe that the adoption of a minimum rate of pay across all these sectors, which values artists as professionals would have immediate benefit. To this end the SAU have produced a Rates of Pay document for session and short term contracts which it is currently promoting."
Scottish Artists Union submission

Meetings and Thinking Groups

The matter of the status and profile of the creative individual was discussed in depth at several public meetings, and also by our Thinking Groups. In general, it was felt that the lack of an obvious national presence might be hindering status and profile. A comparison was made with the way in which other 'national treasures' are exploited - collections, performance companies - and a view was expressed that creative individuals should be afforded the same opportunity.

While acknowledging the difficulty of designating an individual 'of national significance' it was widely felt there could be a body at national level representing and comprising creative individuals. Models such as the Irish Aosdana and French Academie Francaise were cited and are outlined below.

Desk research

We researched many examples of contemporary practice for practical support of individuals from across Europe and Australia. These are summarised below.

Comparative practice - Europe

Many countries have legislated special social security arrangements for artists, although not all of these are effective: in Austria artists doing both freelance and contract work can pay more national insurance than average.

France grants freelance artists full employee benefits after two years in business and intermittent workers are eligible for unemployment benefits. Germany has a contributory social insurance fund for artists, which is subsidised by a Droit de Suite arrangement. The Netherlands grants welfare benefits to artists for up to 4 years during which they can gain income from their work and provides support for sustainable business development. Croatia pays social insurance for artists from the state budget. Finland offers a state pension for artists as an extension of their civil service scheme. Sweden offers life-time income protection for a limited number of artists, and is working to improve conditions generally. Denmark provides a lifelong maintenance grant for certain artists.

Artists are eligible for tax and/or VAT breaks in several countries. Freelance artists in Ireland have been tax-exempt since 1969 and there is no upper limit on earnings. Quebec provides a tax exemption for artists from copyright income up to a limit. Artists in France are eligible for income tax relief, and creative products have a reduced rate of VAT. In Austria public subsidies to artists are tax-free and 12% of their total income is tax deductible. Germany operates reduced levels of VAT for some creative products, and under certain circumstances non-profit theatres are tax-exempt. Germany and Austria also allow self-employed artists to spread their income over a 3-year period for tax purposes. Croatia gives significant tax breaks (25%) to writers.

The Netherlands operates a dual VAT system whereby low VAT is charged on creative products, and artists charge a high VAT rate for their work. Sweden levies a low rate of VAT on royalties, and some grants to artists are tax-exempt. Artists in Switzerland are either exempt from VAT or pay a reduced rate. Belgium has created tax incentives for employers to hire part-time artists and to grant them the same benefits as a full-time employee. France spends 1% of construction costs for public buildings on art for the building.

The following table summarises evidence on state benefit support we considered:

Tax exemption for creative individuals - Ireland

Since 1969, artists in Ireland are able to apply for tax exemption on income from the sale of any 'original and creative' pieces of work. This scheme makes no judgement of artistic merit beyond the eligibility criteria and relies on the buying public to assess the worth of a piece of work. Consequently, it tends to offer greater reward to the already successful and is less of an advantage to those artists establishing their reputation and customer base.

The cost of the scheme to the Irish Exchequer has been calculated at £20-24m per annum with around 1,200 beneficiaries. Between April 1998 and December 2001, tax exemption was granted to 3,180 artists. ⁷ This has been interpreted as the result of a reinforced and flourishing arts sector. In March 2005 the Director the Arts Council of Ireland said she was, "satisfied that the Artists' Exemption Scheme, over 35 years, has been very successful." ⁸ Factors identified by the Arts Council of Ireland to demonstrate the success of the tax exemption scheme include:

• global achievement by a small number of Irish artists and international acclaim enjoyed by many more

• considerable benefits to Ireland's international reputation as a home for the arts

• significant contribution from the creative sector to the highly successful Brand Ireland

• contribution of the scheme to the creation of a flourishing artistic community

• providing compensation for the disincentives to artists resident in Ireland - limited market, high cost of living and limited working space.

The Arts Council of Ireland has stated that:

"for many of artists in Ireland, the Artists' Exemption is frequently described as the only basis on which creative artists can continue to practice their art form in Ireland." In fact, the majority of beneficiaries of the scheme earn less than the minimum wage: in 2001 approximately 50% of all qualifying artists earned less than €10000 (£7000) artistic income in that year."⁹
Breakdown of data for 2001: ¹⁰

We are persuaded that the financial benefits to accrue to low-earning individuals from tax exemption could make a significant difference to the ability of those individuals to develop their creativity. There is merit in considering a similar scheme for Scotland, perhaps with an appropriate ceiling of earnings, for example, reimbursing tax paid on the first £30k of income. Although this would be unlikely to attract high earning individuals back to Scotland it could give a great boost to low-earning individuals.

Peer group mentoring and recognition

We considered two examples of this, from Ireland and France, with a view to assessing the benefits of a similar approach in Scotland.

Peer group support

Our research identified two example of good practice in Scotland. The Transmission Gallery in Glasgow provides business support to participating artists and makes it easier for emerging talent to exhibit publicly. It also networks widely and is gaining in international reputation. The Embassy Gallery in Edinburgh, as well as providing a platform for professional artists, also mentors students in business skills.

The Transmission Gallery provides a place where artists can meet, talk and exhibit along with local and international peers and influences. Through its networking and exchange of ideas, the Transmission Gallery has become a model for other artist collectives including Catalyst in Belfast and Generator in Dundee.

The Embassy Gallery is a non-profit making artist-run organisation with seven volunteer directors and a broader member base. The Gallery is involved in teaching business skills and mentoring students at the Edinburgh College of Art, through its presentation of a Professional Practice Course.

7.9.3 Our thinking

We firmly believe that the encouragement, support and development of creative individuals is central to the health of the cultural sector and a thriving Scottish society. It is vitally important that we being to address this strategically, holistically and with appropriate resources. We believe that raising the status and profile of the creative individual can be best achieved in two areas:

• national peer-group recognition

• awards.

Raising the status and profile of creative individuals

Our evidence shows creative individuals need various types of support to help raise their status and profile. These can be broadly categorised as:

• professional advice/mentoring

• financial support

• business advice

• reflection/research

• further training/learning.

If we consider the career trajectory of the creative individual to span three stages, then this support will be prioritised differently during each stage and might be summarised as:

It is possible to overlay the above table with existing support: Early Stage Priority 1 is provided in part by the NESTA Young Pioneers Scheme; Mid-stage Priority 1 by the Creative Scotland Awards.

Such an overlay begins to reveal gaps in current provision, and the lack of a coordinated strategy to address the career needs across the cultural sector. We are persuaded that this can be successfully addressed in two ways:

• establishing a national body comprising creative individuals to allow peer-group assessment

• ensuring the cultural infrastructure includes a body with clear responsibility to support creative individuals holistically and strategically. ¹¹

Our proposals for the cultural infrastructure are contained in Section 10. Depending on what option is chosen, there should be a direct relationship between responsible bodies, and it would be appropriate for the latter to service the former.

A national council for the creative individual

The Commission proposes that a national council for the creative individual be created, although we feel it should have a different title, perhaps derived from Scots or Gaelic. It would be a membership body whose members are nominated and elected annually by their peers. We believe it should reflect the diversity of the creative individual in contemporary Scotland and should not exclude any discipline or area within the cultural sector. New members could be announced in an annual ceremony, perhaps by the First Minister on St Andrew's Day, to confer profile and standing on the role of the creative individual in Scottish life.

The body should be self-regulating and governing. We believe membership should be based on excellence and achievement but also encourage potential. Essentially, it should act as a forum to encourage:

• exchange between cultural disciplines

• mentoring between the experienced and those at an early stage of their creative life

• an articulate voice for the creative individual in Scotland.

We have considered whether it would be appropriate for such a body to recommend grant awards to individuals and believe that this would be more effectively and appropriately a duty for an administrative body. We have considered whether members of the council should be eligible for annual financial assistance, including pension. We believe the adjustments we have proposed below to the existing tax and benefits system are a fairer way of ensuring broad assistance to individuals. However, we also recognise that many creative individuals are among the lowest earners in society and that no opportunity should be lost which alleviates this. We therefore ask the Executive to consider allocating additional financial support for council members.

The council should be serviced by a separate agency nominated by the Scottish Executive. Our infrastructure options in Section 10 indicate what form this might take.

Scottish Executive/agency support

The Scottish Executive or, more appropriately, its nominated representative should ensure that the needs of the creative individual are co-ordinated to maximum effect. The following functions need to be undertaken:

• co-ordinate existing support

• identify gap areas of provision

• work with appropriate agencies and private sector to develop methods of support

• develop opportunities in the five areas of support identified above:

  • professional advice/mentoring

  • financial support

  • business advice

  • reflection/research

  • further training/learning

• develop the role of, and opportunities for, the individual representing Scotland abroad

• promote the profile of the creative individual nationally and internationally.

Whilst we do not believe that this merits a separate organisation, we do believe that it is a significant task and should be a discrete element within a single body.

Awards

We are supportive of the need to develop awards that are appropriate, distinctive, and meaningful. In general we believe these are most effective from the peer group, although sometimes also by public acclaim. Membership of the council itself should be seen as a notable achievement, nationally and internationally, and perhaps some award or title should accompany it.

We believe there is scope to develop another level of award for outstanding contribution over a sustained period of time to the cultural life of Scotland. Such awards could be nominated from a combination of sources - Parliament, the public and the council. We ask the Scottish Executive or their nominated representative to develop this further, perhaps using the expertise of the Royal Society of Edinburgh.

Additional support for the creative individual

The Commission believes that there are three main areas where additional support would be valuable:

• tax and employment

• mentoring

• brokerage with private sector.

Tax and employment

In our international evidence, the assumption behind tax exemption was that artists, creators and producers are crucially important to many economically important cultural industries, yet often supply unpaid or underpaid labour. We heard evidence of this also being widespread in Scotland. One effective way to address this is through the tax and benefits system. This is operated at UK level and is not, of course, a devolved matter.

Creators and artists should be entitled to the support of the state in an appropriate and fair way. The social security system should acknowledge the nature of their employment patterns, which are often casual. We believe a scheme of fiscal support for creators and for creative individuals ¹² should be developed and that the Scottish Executive promote this to the UK government. The following should be elements within the proposed scheme:

• creators should be eligible for annual tax exemption on copyright income up to an agreed figure

• a review of access to social security for both creators and interpretive artists to enable automatic welfare support (non contributory job seekers' allowance) benefits after two years in business.

• freelance creators and interpretive artists should be eligible to spread their income over a three year period for tax purposes

• creators should be eligible for income tax relief

• creative products should have a reduced level of VAT

• public subsidy to creators and creative individuals should be tax-free

• tax incentive for employers to hire part-time creators with the same benefits as a full-time employee.

Mentoring

Whilst mentoring is not a universally adopted method of assisting development, opportunities already exist in some areas of the cultural sector, notably NESTA, for whom mentoring is a core activity, and the SAC who have increasingly used mentors to assist projects. We believe this is a key area to be developed by the Scottish Executive-designated agency referred to above.

Brokerage with the private sector

We believe there are tremendous opportunities to be realised from developing links between the private sector and creative individuals. Again, NESTA have this as a core function and have demonstrated the positive benefits of ideas exchange, business advice and support, and developing new ways of encouraging investment. We recommend this approach is developed by the Scottish Executive-designated agency referred to above.

7.10 Built environment, architecture and design

7.10.1 Our understanding

We understand that cultural activity takes place in a broad range of buildings, specialist and general, national and local. The bulk of activity takes place in informal or community settings, for example in hotels, clubs, civic halls and community centres. There are, therefore, limitations on the scope of how we might realistically assess 'adequacy' as we are required to do in our remit, and make recommendations based upon it.

We have understood our primary role in this regard to take views on the condition and suitability of the current built infrastructure; on the availability and distribution of the built infrastructure; and to use as context the First Minister's expressed views on matters of design.

7.10.2 The national cultural estate

Scotland has an outstanding and varied cultural estate, from pre-historic tombs to the Edinburgh townscape classified as a world heritage site. The built environment comprises historic buildings and brand new structures, the layout of our playgrounds and parks and the assembly of street furniture. Perhaps as a result of this breadth, there lacks a strategic overview of the cultural estate as a whole. We believe that acknowledging the concept of a 'national cultural estate' would be a significant and necessary first step to addressing this.

We recognise that a significant amount of cultural activity takes place in, for example, schools and churches but we do not believe it would be realistic to include every venue that holds cultural activity in a definition of the cultural estate. A more practical definition might be: either a facility whose sole or primary purpose is for cultural activity, or the sole, or a key, facility within a community used for cultural activity. In some instances such a facility will indeed be the local school or church hall.

7.10.3 Auditing the cultural estate

We believe that the variety of Scotland's rich built environment would benefit from a strategic overview as a national cultural estate. Planning capital development at national, regional and local levels should be more strategic. There was a frequently expressed view that 'the loudest voice' usually succeeds when arguing for capital investment, and that projects for the National Institutions may be at the expense of comparative investment in regional and local cultural estate that might yield potentially greater benefits.

The Commission recommends that an audit of Scotland's cultural estate is an absolute prerequisite. This should include an assessment of condition, investment required, citizen engagement, strategic importance and quality of design.

7.10.4 Standards in cultural facilities

There should be nationally agreed standards for the level and nature of provision of cultural facilities. The aims should be two-fold:

• to improve the quality of design and use of the facilities themselves

• to assess what level of access to what range of facilities is required for a healthy community.

7.10.5 National Estates Forum

On the basis of the audit and standards, a national strategy for Scotland's cultural estate should be prepared. The national strategy should specify the level of funding required and recommend how this might be sourced and prioritised.

To take the strategy process forward, we believe there is a need for National Estates Forum that brings together representatives of the cultural estate, i.e. Scottish Executive and its relevant agencies, local authorities, National Trust for Scotland ( NTS), A+DS, the Lighthouse and other relevant bodies.

Their primary purposes would be to:

• commission and oversee a national audit of Scotland's cultural estate

• devise and propose national standards of good design and good practice

• develop a national strategy for maintaining and developing the cultural estate

• prepare a case for investment.

7.10.6 A better quality built environment

The Commission believes that we should ensure that the standards of design of our built environment are improved, and we should support ways of creating greater opportunities for our architects and designers.

The First Minister said:

"The planning system can be a powerful tool to encourage creativity in both open spaces and the built environment. The right to an aesthetically pleasing environment is as much a right for the poor in run down areas as it is for the rich living in today's conservation areas.

While gardens and designed landscapes are important both culturally and historically, the planning system can encourage the use of art in the design of new open spaces. The inclusion of elements of art can encourage a sense of ownership and community pride in the open space."
Jack McConnell, St Andrew's Day, 2003

We share his desire for a better environment for our citizens and this view was heavily endorsed in our consultation. We propose two ways of achieving this:

Education

Awareness of the benefits of a better quality built environment and understanding the possibilities of how this might be achieved are both essential. We believe this must be achieved through education. The Lighthouse and the Scottish Executive's Architecture Policy Unit already make important contributions in this area, as does the Aberdeenshire Environmental Education Centre.

We believe there are opportunities to increase the investment in education and awareness projects and to investigate how these might engage more directly with schools and colleges. The Lighthouse, in association with the Scottish Executive, is best placed to do this. We have proposed in Section 5 that the schools estate be built with clear educational vision and to high design standards. The Commission accepts the proposal from The Lighthouse to offer a referral facility for all schools' building projects. Young Scots educated in those circumstances will have a head start and will approach the outside world with educated eyes, able to 'read' their surroundings and be sympathetic and proprietorial about their environment. Design should be a central part of the learning experience and the buildings and parklands of the community should be part of the educator's teaching resource.

Procurement and statutory processes

Design standards should be formalised as part of the procurement process for new buildings. Advice and mentoring should be provided to assist developers and architects with this process. We heard views that suggested this should not be compulsory but should provide guidance and encourage good practice. We agree with the need for guidance but are persuaded that results are more likely if such procedures are formalised within the planning and procurement process.

We are conscious there is a strong view this process is already considered overburdened with regulation. However, we believe that a statutory obligation to consult on design standards at an early stage in the procurement process will ensure the significance of design is acknowledged by architects and developers, and ensure the standard of design is gradually improved. A+DS would be an obvious choice as statutory consultee, but they are currently at too early a stage in their existence to take on such a role. It may be that, in the light of two to three year's experience, they will have developed that capacity. In the meantime we would strongly recommend early referral to A+DS for advice on how good practice can become an accepted part of the procurement process.

7.10.7 Protecting our built heritage

The historic environment is a valuable part of our tourist strategy. The skills for conservation of historic buildings, however, have to be re-invented. What is not evident is the mechanism for debate, discussion and advocacy. We are keen that those from the professional bodies such as RIAS and RTPI come together with those who have significant interests in the built estates - schools, cultural buildings and the church estates - to begin the exchange of information and ideas that will lead to the co-ordination of thought needed to produce coherent national policies. This might be best achieved initially within the proposed National Estates Forum.

Charter for Good Design

Although not part of our remit, we received several cogent submissions detailing the importance of design, a view that we share. We would therefore recommend greater emphasis be placed on the importance of design, and the role of designers, in Scotland. One way of ensuring standards of design are raised would be to draft and implement a Charter, or Guideline, for Good Design in the Public Estate. This is something the proposed National Estates Forum could consider as part of their remit to address standards.

We would suggest the following as potential areas for such a charter:

• all public and cultural buildings ( e.g. schools, hospitals) should:

  • contribute positively to the public realm, their surrounding context and the local community

  • meet the highest standards of access for people with a disability

  • work well for all users and add social and business value to service delivery

  • provide opportunities for commissioning artwork and architect/artist collaborations.

• all public/cultural buildings should also be:

  • of outstanding design quality

  • well built, built to last and easy to maintain

  • ecologically sound, energy efficient and minimise resource use in construction and use.

• selection procedures should ensure that the best/most talented architects are employed

• there should be opportunities for new and younger talent to work on public sector and cultural projects.

• all clients of public buildings should recognise and acknowledge the cultural value of their investment.

The aim of this process should be for outstanding results and diversity, not uniformity, and standards would therefore need to be carefully described to avoid misinterpretation. The SAC insistence on good design being demonstrated in their capital lottery projects is an excellent example of this. The recent arrival of 'design champions' in both Edinburgh and Glasgow is very welcome and this policy could be more widely adopted among public bodies.

Valuing architects

The Commission applauds the work of contemporary Scottish architects. David Page, Richard Murphy, Malcolm Fraser and the partnership Nicoll Russell and others have shown how to create high-grade contemporary buildings that fulfil their purpose and enhance their communities. Foreign architects such as Miralles and Gehry have also produced remarkable contemporary work.

Malcolm Fraser described what he saw to be the task of his professional contemporaries:

"…a strength of our contemporary architectural character will be an understanding that our relationship to our built environment involves caring for it, and learning from it. We must be community architects, must look and listen, must repair, must persuade our government to give us an equitable way of valuing the world around us, must enlarge our idea of sustainability. Just as we must make the most of people, so should we make the most of the whole environment around us, love it for what it is, and what we have done with it."

The Commission agrees with this view and is committed to seeing Scottish architectural talent being encouraged to flourish. We are concerned, however, that Scottish architectural practices are sometime excluded from competition at the earliest stage, as pre-selection decisions are often made on the basis of the practice's ability to show Professional Indemnity Insurance at £5m, which automatically excludes 95% of Scottish architects' businesses.

To project major public investment such as rebuilding the schools' estate, mechanisms must be put in place to ensure that Post Occupation Evaluation ( POE) is an integral part of any substantial programme of building. We welcome an indication that the Scottish Executive's Education Department is addressing the matter and believe this should be extended more broadly.

The Commission recommends that these matters be reviewed by a group comprising those who commission and those who are commissioned, and that this group reports its findings to the Scottish Executive. A review of best practice in Europe could be of value.

Architecture policy

We found the current Scottish Executive's architecture policy to be clear and broadly consistent with the views we received from elsewhere in the sector. There was some frustration expressed, however, that the full potential of the sector was not yet being realised. We share this view and would recommend the Executive strengthen their architectural policy and allow commensurate staff resource to allow this.

Historic Scotland and the National Trust for Scotland

Historic Scotland holds an important portfolio of 300 properties that demand conservation and need funding. They are of worldwide interest but are in our care. The Historic Scotland portfolio is important for historical, cultural and educational reasons. It can also generate income to go towards its upkeep but it is not likely ever to show profit.

A review of Historic Scotland was carried out in 2004 by the Scottish Executive which concluded that there was clear need for significant cultural change within the organisation. This is now in hand. There was also a call for a debate with stakeholders about Historic Scotland's practices. In this context, the Commission welcomes the reform of the governance of the National Trust for Scotland and its recent reorganisation. The agency is now in better financial health than in recent years.

Joint working

In the spirit of more open and therefore stronger arrangements for the stewardship and promotion of Scotland's historic buildings, roofed and unroofed, the Commission suggests that the management of properties in the care of Historic Scotland and the National Trust for Scotland might be reviewed again with the aim of assessing the viability of joint administration of the two property portfolios. Historic Scotland and The National Trust for Scotland have separate asset bases that should stay in separate ownership.

What is suggested is:

• a separately constituted management body to generate efficiencies of operation, to bring in as much community participation as possible in managing local sites and to maximise the marketing and promotion of the properties

• the property management function must include conservation skills and development because they are inseparable - this is an area that might result in a skills base of international standing and commercial application if properly encouraged.

Key stakeholders who ought to be included in these new arrangements are VisitScotland, the National Galleries and National Museum, the Scotland Funds and a non-executive director with strong commercial experience, in retail for example. The historic properties held by Historic Scotland and the NTS will need conservation. The Commission includes the Scotland Funds as participant in these suggested arrangements because generating interest in funding for conservation will be necessary and the Scottish diaspora may well be a source of help.

The range of functions carried out by Historic Scotland has caused some comment during our consultations. Historic Scotland's role in the protection of the built heritage, inspection of listed buildings, restoration and repair functions, and advice to Ministers and owners are accepted by all as legitimate core functions. What is questioned is the Executive Agency's role in managing visitor attractions.

We should also record the dissatisfaction of some architects and builders with the role of Historic Scotland in the consent process. The Commission endorses the finding that clear and concise information and guidance on the listed building consent process should be provided to all those with interest in the proceedings. The Commission believes that there may be benefits in Historic Scotland conferring with A+DS on matters of consent and the listing process.

The new infrastructure

In Section 10 we propose options for a new cultural infrastructure. The options we believe are strongest consolidate the various disciplines within the cultural sector into one body. The logic of this approach could be extended to embrace Historic Scotland. However, we have not included the organisation in our recommendations for two reasons:

• in its present operation and scale it would imbalance the proposed single body

• any changes to the organisation should be in light of the review with NTS proposed above.

7.11 Language

"We must cherish our own indigenous languages of course, because they are ours. Even more, we must cherish them because they are that part of the world's indivisible heritage that it is our duty to hold in trust for all humanity."

Sheena Wellington, May 2005

7.11.1 Our understanding

Scotland is a linguistically diverse country. We have three indigenous languages - Gaelic, Scots and English - many regional and local dialects, and the languages of our ethnic and multi-cultural communities. For the purposes of this report we have taken our lead from the Commission's remit and focused predominantly on Gaelic and Scots.

We believe that Scotland's indigenous languages, Gaelic and Scots, are national treasures and have a central role to play in the cultural life of Scotland. We are custodians of these languages and we should take this responsibility seriously. We believe the distinctiveness of Scotland in the eyes of the rest of world is enhanced by the Gaelic and Scots languages, and the identity of Scots is strengthened through validation of the international significance of our own spoken languages. We recommend in Section 5 there should be standards prepared for the languages (Gaelic and Scots) where Scots are the chief custodians.

We recognise the difficulties facing endangered and lesser-used languages throughout Europe. Only a small percentage of Scots speak Gaelic and the significance of the Scots language is not universally appreciated by Scots. We understand, however, that parity of esteem is a prerequisite for any custodian of a language, and an essential starting point for development.

7.11.2 Gaelic and Scots in contemporary Scotland

Gaelic

With fewer than 60,000 speakers in Scotland, comprising 1% of the total population, a third of the numbers of a century before, Gaelic is technically an endangered language. However, the Scottish Executive is moving towards implementing measures to safeguard the position of the language and its associated culture. Gaelic is being supported through legislation, with the Scottish Executive's Gaelic Language Bill and Bòrd na Gàidhlig which was set up by the Executive in 2003 as one of the responses to the Ministerial Advisory Group on Gaelic. The Bòrd advises Scottish Ministers on all areas of Gaelic development and its primary task is to create a sustaining and growing future for the language.

"Although the language (Gaelic) is in a precarious state, it is far for dead, and indeed there is much to be optimistic about. In 2005 we are on the verge of a real turning point in the fortunes of the language."
Bòrd na Gàidhlig, March 2005

Gaelic now features at all levels of education in Scotland: pre-school, primary, secondary, further and higher education, and as part of teacher training. Gaelic language and education are not confined to the traditional Gaelic-speaking areas of Scotland but are also established in the main urban areas, with people of all ages encouraged to learn. ¹³ Gaelic education in Scottish primary schools has increased with each passing year.

A Gaelic Broadcasting Fund grant aids around 150 hours of Gaelic language programming each year on a variety of Scottish television channels and networks and supports Gaelic radio services. In addition, more than 100 hours of Gaelic programmes are aired each year by BBC Scotland, Scottish Television, and Grampian Television, at their own expense. ¹⁴

Scots

Prior to 1900 Scots was the most commonly spoken language in Scotland, reaching a height of 3 million or more speakers in the late 1800s. Today 30% of people are believed to use Scots in daily life. ¹⁵ Like Gaelic, Scots has been found to be strongest in rural and remote areas of Scotland, with urban regions dominated by standard English. ¹⁶ As a consequence, it has been registered by the European Bureau of Lesser Used Languages.

Despite attempts to restore the Scots language, several submissions suggested historic negativity towards Scots persists and the public still perceives the Scots language as inferior and that the value of the Scots language will not change unless it is heard at all levels of Scottish society and is promoted more positively.

"The Executive must take urgent action to end discrimination against the Scots language".
Scots Language Resource Centre and Scottish Parliament Cross Party Group on the Scots Language, January 2005

"Scots has suffered from its proximity to English, being too often dismissed as 'bad English', 'the language of the gutter' and so on. Not surprisingly, if people are consistently told that their language is inferior, debased and an impediment to success in life, if they are denied formal access to the great bulk of the literature written in that language, and if they are discouraged from using that language in the context of education, they will develop a highly ambivalent attitude towards it."
Itchy Coo, January 2005

For the past twenty years, organisations such as Scots Language Dictionaries have endeavoured to further the cause of Scots through a variety of publications. The Scots Language Resource Centre ( SLRC) in Perth, Central Scotland was established as a principal source of textual and archival information on Scots. ¹⁷ The SLRC is a member of the European Bureau of Lesser Used Languages and participates in the Scottish Parliament's cross party group on the Scots Language.

7.11.3 Our consultation

Advocacy

From the consultation responses and submissions received, and the conversations that the Commission has held with Bòrd na Gàidhlig, the Gaelic and Scots cultural groups and stakeholders from Scotland's other linguistic communities, it would appear that perhaps the greatest challenge facing our indigenous languages is the absence of a single voice or advocate. Both communities feel their language is discriminated against and both feel strongly their language needs to receive greater recognition by government through additional legislation and increased support for their language's development.

The Commission supports the valuable work of Bòrd na Gàidhlig and considers its role essential in delivering the National Plan for Gaelic, once the Gaelic Language Bill is enacted.

Institute for the Indigenous Languages of Scotland

A proposal for an Institute for the Languages of Scotland has been developed by a number of academic institutions and language agencies working together since 1999. The rationale is that Scotland is lacking an important resource that has been shown in other countries to play a central role in supporting and leading on language policy. A feasibility study was completed in 2003 based on a wide consultation with the sector involving Scots, Gaelic, and other indigenous, historic and community language interest groups. The proposal is currently with the Scottish Executive. The study suggests that the Institute "address the language interests, needs and concerns of the people of Scotland". The National Cultural Strategy (2000) also describes the aim to establish a centre for the languages of Scotland. ¹⁸

The study suggests the Institute works in association with such organisations as Bòrd na Gàidhlig, and their function would be to:

• provide an overarching body to steward Scotland's language resources

• work with existing language organisations to co-ordinate activities at a national level

• stimulate relevant research for the sector

• provide language materials for formal educational purposes

• build bridges between diverse language communities in Scotland

• promote Scotland's languages internationally.

The benefits of the Institute would include:

• a single access point for expert knowledge and reliable information on all Scotland's languages, including for policy makers

• an authoritative institution to provide information and advice on language matters to policy makers

• increased accountability and credibility for the sector

• advice/mentoring on advocacy, outreach and promotion for language organisations

• co-ordination for new groups and language initiatives

• language services and resources for the public.

The proposed Institute would perform an advocacy role on behalf of the sector and would provide information resources to assist and co-ordinate the advocacy efforts of individual organisations.

The proposal for the Institute has received significant support from many Gaelic and Scots language bodies and academic institutions as well as community languages groups. The range of partners involved in the proposal highlights the level of demand in the sector for an umbrella organisation such as the Institute. Special status would be afforded by the Institute to Scots, Scottish English and Gaelic as indigenous languages in need of conservation. However, the Institute could be also all-inclusive and support non-indigenous languages, for example Arabic, Urdu, Cantonese etc.

We believe a representative body for the indigenous languages of Scotland should be created. Such a body should primarily seek to develop standards of good practice for languages, to advocate, and to ensure cooperation and collaboration between existing bodies and initiatives.

We believe there is also an important developmental role to be undertaken (such as that outlined for the proposed Institute) and, depending on the chosen infrastructure model (as set out in Section 10) it may be appropriate for this new representative body to undertake that role. If not, then an organisation/s should be clearly identified to undertake these responsibilities.

Language status

Submissions have highlighted the need for Gaelic and Scots to be given enhanced status, and for these languages to have parity of esteem with English. There have also been calls for "equal levels of funding to be given to each of Scotland's indigenous languages." ¹⁹

The Commission agrees that the current disparity in funding for Scotland's indigenous languages should be addressed. The prospect of a Gaelic Language Act is seen as a useful step ²⁰ and there is considerable support for Scots to have its status enhanced. The Scots Language Resource Centre in its September 2004 submission calls for "efforts to be put in place which will address the present invisibility of the Scots language".

One option suggested to the Commission by the Scots Language Resource Centre and the Scottish Parliament Cross Party Group on the Scots Language is the implementation, by the Executive, of the provisions of the European Charter for Regional and Minority Languages that apply to Scots. An alternative suggestion aimed at raising the status and profile of Scots to that of Gaelic is an Indigenous Languages Bill, suggested to the Commission by the SNP.

There is unanimous belief within the Gaelic community that the Gaelic Language Bill once enacted will bring about a step change in attitudes towards the language and ensure its development is undertaken consistently across Scotland. We understand there may be some concern at the potential financial consequences of such a step, and these should therefore be elaborated. The logic behind a new Indigenous Languages Bill is that this would begin the process of increasing the status and awareness of Scotland's other indigenous languages.

We are broadly supportive of the views seeking to improve the status of our indigenous languages. We believe a practical way of elaborating the consequences, both financial and legislative, of these suggestions is an interim stage of development. We recommend that the proposed new representative body prepare a National Indigenous Language Strategy that explores the most effective way to promote and develop both languages across Scotland. The strategy should address issues such as education, publishing, media and promotion. This recommendation represents the views of many of the Commission's consultees, including the Scots Language Society and the SNP.

Education

The development of Gaelic education is perceived as being key to its future and there are calls for not only the option of Gaelic being available for all school children, but for children to receive their full formal education through the medium of Gaelic. ²¹ There have also been calls, particularly from the Scots speaking community, for state schools to encourage respect for linguistic diversity and provide opportunities for pupils to learn about the variety of languages and dialects used in Scotland ²² and that these opportunities should be provided as soon as practicable. One group of consultees has taken this proposal further and, in addition to calling for Scotland's indigenous languages to be in the schools curriculum, called for them to be a national priority in education under the Standards in Scotland's School's Act 2000. ²³ It should also be observed that Scots and Gaelic song and poetry have carried these languages forward historically and can play a significant role in education in the future. Another has suggested that Gaelic education should be compulsory in all schools in the Highlands and Islands. ²⁴

There are resource implications associated with any proposal to extend language teaching or awareness in schools. Catriona Black, Robert Seaton, Lis Smith, Ron Turnbull and Murray Tyrrell, in their January 2005 submission are very clear on the implications when they say that the "Scottish Executive needs to provide resources to enable the training of teachers across Scotland who can deliver Scots language and literature education into our schools". ²⁵ Furthermore, they propose that every local authority education department should be obliged to develop a Scots Language strategy and employ one designated Scots language teacher. Itchy Coo is developing a programme of training as a model of what could be achieved with adequate funding. Suggestion of a web-based Scots language teaching resource could possibly be developed in partnership with Learning and Teaching Scotland ( LTS).

The Commission supports calls for all schools in Scotland to encourage respect for linguistic diversity and provide opportunities for pupils to learn about the variety of languages and dialects used in Scotland. This, if enacted, would ensure that awareness of both Gaelic and Scots was delivered throughout Scotland. The implications of the Gaelic Language Bill on Gaelic language education will be significant and should be given the opportunity to develop.

Publishing

Publishing Gaelic and Scottish language material is highly reliant on financial subsidies and support from the Scottish government, and both industries are trying to develop and expand their capacity and sales. Those publishers that do specialise in Gaelic titles are generally small. Despite these issues, the inclusion of a Gaelic language option in the Scottish school curriculum in Scotland has created a demand for educational materials and Scotland's specialist publishers have experienced problems in keeping up with the growth in Gaelic-medium education.

We understand that the absence of a popular reading culture is a challenge for the diversification of the Gaelic publishing industry away from educational titles. There is no doubt that a strong publishing sector in Gaelic and Scots is important to the survival of both languages. There is a need for both high quality educational reading material and popular or regular material and publications.

The Commission supports the work already being undertaken by Bòrd na Gàidhlig in working with the SAC, Comhairle nan Leabraichean, Stòrlann Nàiseanta na Gàidhlig and others in developing material for not only educational purposes but for general enjoyment. We believe that further efforts should be made to encourage diversification of Gaelic publishing and to increase the range and quality of books, magazines and articles. This could be achieved by Bòrd na Gàidhlig encouraging the creation of new publications in Gaelic and by developing the existing support by the SAC towards books and other publications in Scots.

Oral traditions

The power of Scottish storytelling has been revived by the Scottish Storytelling Forum and Centre in Edinburgh. A new generation of talented storytellers has emerged from a wide variety of cultural backgrounds to champion the art of oral storytelling in diverse modern contexts. There are now over ninety professional storytellers working in Scotland, alongside a much more extensive community network.

We believe the Scottish Storytelling Centre is key to the successful development of storytelling in Scotland and that it should be resourced adequately to ensure it can develop and implement a national strategy for development.

Language promotion

The promotion of Gaelic language and culture throughout Scotland is one of the functions of Bòrd na Gàidhlig. It does this by promoting information schemes and events, initiatives that raise the profile of Gaelic and by increasing the use of ICT. The Commission supports this work and believes that there is a continuing need to highlight the importance of both Gaelic and Scots as part of Scotland's national identity, both at home and abroad.

We understand that the Scottish Executive is currently preparing an internal strategy to ensure that Gaelic is incorporated within its agencies' development plans.

Use of indigenous languages

The status of Scots could also be enhanced by key institutions and bodies making use of the language in a variety of physical and virtual spaces, and staff could be employed whose job it is to promote and protect Scotland's indigenous languages. ²⁶ Indigenous languages could also be used be used by the Executive (and its agencies) in its publications and on its website.

We believe that there should be formal measurement of the number of Scots speakers and that it should be included as part of the Census. Broadcasting is an important part of maintaining use and visibility of the languages, and enhancing their status. The Scottish Executive and Bòrd na Gàidhlig should encourage the extension of the range, quality and availability of Gaelic television programmes.

The Commission acknowledges that parity of esteem is a prerequisite for any custodian of a language, and an essential starting point for development.

7.12 Summary of recommendations

We recommend:

1) That 'national' status should be defined by Parliament, that the cohort of bodies/organisations with 'national' status should be open to change and that 'national' status be subject to continuing ability to meet the terms defined by Parliament.

2) A best value review of SAC core-funded organisations.

3) The establishment in legislation of a Board of Scottish National Performing Companies and a Board of National Institutions with Collections.

4) Clear, simplified funding contracts between the Scottish Executive or its appointed representative and the national companies and institutions detailing performance expectation and level of public investment.

5) A single funding source for the national performing companies and national collections.

6) A 'best value' review of the national performing companies including; built estates, administration, repertoire planning system, and orchestral provision

7) That on satisfactory completion of the best value review, and prior to establishing the National Board, that the national performing companies have increased baseline investment and any outstanding deficits cleared.

8) A Youth Arts Strategy Forum be created with representatives from each of the National Youth Performing Arts Companies and appropriate Scottish Executive Departments.

9) The national youth companies should develop a nationally recognised 'kite-marking' service for trained instructors.

10) There should be a forum for the National Companies and National Youth Companies, to create a co-ordinated strategy for educational and youth arts in Scotland.

11) That a Touring Exchange should be established.

12) That a consortium led by the lead agency (or the SAC preceding the adoption of the new infrastructure model) should develop the shape and operation of the Touring Exchange.

12a) We recommend that the Scottish Executive commission a study that scopes the operation, costs, partners and viability of a National Box Office (section 7.12).

13) That an International Unit should be established within any new cultural infrastructure. Its main functions would be to:

• coordinate, together with Scottish Executive's External Relations and EventScotland, the major cultural events abroad, including Tartan Week

• develop range and type of international events, including Capitals of Culture

• develop the Institutes of Culture concept

• broker cultural sector links with:

• Scottish businesses promoting abroad

• international development opportunities

• develop a Cultural Ambassador programme.

14) That a national council for the creative individual be created and an inspiring name adopted

15) That support for creative individuals becomes a discrete part of a single agency.

16) A national awards scheme for creative individuals should be introduced.

17) A scheme of fiscal support for creators and for creative individuals (interpretive artists) should be developed and promoted to the UK government by the Scottish Executive.

18) The creation of a National Estates Forum with representatives of the cultural estate, to include Scottish Executive, its relevant agencies, local authorities, National Trust for Scotland, A+DS, The Lighthouse and the Church Estates.

19) That the National Estates Forum commission a national audit of Scotland's cultural estate, devise and propose national standards of good design and good practice, develop a national strategy for maintaining and developing the cultural estate and prepare a case for investment.

20) That early referral to A+DS for advice on good practice becomes an accepted part of the procurement process and that the Scottish Executive should consider developing this into a statutory role.

21) That a guideline for good practice in design of the public estate should be prepared and implemented.

22) That the programme for raising awareness of architecture and design issues in schools and colleges should be extended and early advice sought by local authorities from the facility proposed by The Lighthouse.

23) That a report be commissioned by the Scottish Executive to consider how to involve the best Scottish talent in the design of the public estate, and to address issues of good practice.

24) The management of properties in the care of Historic Scotland and NTS is reviewed to assess the viability of joint administration.

25) That a representative body for the indigenous languages of Scotland should be created. This body would develop standards of good practice, advocate and ensure cooperation and collaboration between existing bodies and initiatives.

26) That there should be a national indigenous language strategy. This could be a responsibility of the proposed new body.

27) That the Scottish Storytelling Centre should be resourced to develop and implement a national strategy for developing storytelling.

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