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Section 8 Planning and partnership

8.1 Our remit

This area was referred to in several parts of our remit. In this section we address the following:

"The Commission is therefore asked:

• for specific guidance on the responsibilities of… local authorities

• to comment on guidance for the private and voluntary sectors

• to assess the merits, and potential, of cultural planning in this regard

and to:

Consider the relationship between the sectors - public, private and voluntary

Consider the role of new and emerging technologies and the IT infrastructure on the sector and the potential for engagement

Assess the need for, and nature of, a cultural think tank."¹

8.2 Our understanding

The 'full ecology of Scotland's cultural sector' embraces the key providers - the voluntary sector and local authorities, as well as those with a commercial interest - the private sector.

We understand our main task is to identify ways for these key providers to operate together, rather than in parallel. We further understand there are opportunities emerging from the Information and Communication Technology ( ICT) sector that could greatly assist delivery, access, education and creation of culture.

Strategic, cutting-edge thinking is a prerequisite of a healthy, forward-looking cultural and creative community and we should identify ways in which this might be achieved.

8.3 Consultation

Our consultation was wide ranging across delivery sectors and agencies. We give a précis of our consultation at the beginning of each main heading rather than collated here. In this section, we will consider the various elements in the following categories:

• fostering growth and innovation

• cultural planning

• local government

• voluntary sector

• private sector

• shaping the future

• IT creative industries

• think tank.

8.4 Fostering growth and innovation

It is government's obligation to ensure the infrastructure is in place that facilitates the development of culture and the citizen's access to it. That infrastructure can be legislative, financial, built or organisational. It is not government's duty to provide the infrastructure (although sometimes it will be) but to ensure it is provided. Government can create the environment that stimulates growth and development, and that encourages innovation.

Elsewhere in this report we have indicated the importance of cross-cutting initiatives within the public sector. In this section we look more closely at the key providers, the processes that may enable them to work together more effectively, and the issues that may stimulate their growth. Chief amongst these we believe is cultural planning.

8.5 Cultural planning

8.5.1 Our consultation

We received substantive submissions on cultural planning from several sources, including Fablevision, the Arts and Communities Association, Senscot and the recently formed Cultural Planning Steering Group. We also studied academic research undertaken by Dr Franco Bianchini at De Montfort University, Lia Ghilardi of Noema Research and Planning, Professor Colin Mercer, and the ongoing work of Jennifer Williams at Creative Communities.

We also considered case studies of the Bristol Partnership for Sustainable Development, Edinburgh Cultural Partnership and the Aberdeen City Centre Partnership.

8.5.2 Defining cultural planning

"Cultural planning is not the 'planning of culture', but a cultural approach to urban planning and policy. In particular, while cultural policies tend to have a sectoral focus, cultural planning adopts a territorial remit and, crucially, focuses on the question of what, for whom, and why."²
Lia Ghilardi

Cultural planning and cultural diversity

Cultural planning can help local government to identify the distinctive cultural resources of a city or locality and apply them in a strategic way to achieve key objectives in areas such as community or economic development. Cultural planning is instrumental in creating participatory opportunities for a variety of social and cultural constituencies.

Cultural planning is, therefore, a cross-sector approach to sustainable community development that puts people and culture at the centre. It is a process developed through a series of socially engaged creative projects that is entirely citizen-focused. Like other approaches it needs appropriate policies and resources to flourish.

8.5.3 Benefits of a cultural planning approach

A cultural planning approach exemplifies the creation and delivery of cultural entitlements locally, which we see as a duty of the cultural planning partnerships we propose in Section 10. It takes a holistic approach, allowing access to culture that goes beyond attending events or performances. It delivers ownership of, and participation in, appropriate developmental cultural activity and allows the creativity of people to be acknowledged and respected through participation and contribution to the shaping of their own culture, community and environment.

For example, a cultural planning approach to community regeneration would address jobs, training for employment, planning, and development of SMEs in a holistic way, not in isolation from each other. Its starting point acknowledges the potential of local people and their cultural heritage. Then it considers how best to map, nurture, engage and develop the potential creativity and resources of the community.

External evidence

Recent Council of Europe reports: In from the margins, European Task Force on Culture and Development (1997) Council of Europe Publishing; Culture at the crossroads, Pachter M. and Landry C. (2001) Comedia and Ericarts (2002) and Creative Europe: On governance and Management of Artistic Creativity in Europe ARCult Media (2003) ³ have emphasised that the old ways of delivering cultural strategies no longer work. They cite several reasons: public sector organisations are limited not only in their potential for independent fundraising but also in providing a direct response to cultural and social complexity within communities, and traditional cultural policies tend to deliver an arts agenda in isolation.

Internal evidence

The Enterprise and Culture Committee of the Scottish Parliament published an extremely interesting and important Report on Arts in the Community in 2005. This was based on evidence the Committee had taken from a very broad cross-section of arts providers throughout Scotland. Although not explicitly concerned with cultural planning, many of the report's recommendations are entirely congruent with the approach and the philosophy outlined above. Its findings were viewed across three areas: mainstreaming the arts, funding and evaluation, and practical support.

One key recommendation in this regard, which we are happy to endorse, is:

"The committee recommends that, as a matter of urgency, the Scottish Executive sets out what actions it will take to mainstream the arts into public policy, planning and funding."

Our findings throughout this report have been influenced by much of the evidence offered to the Committee, on the conclusions they draw and the recommendations they make. We commend the full report and its contents for implementation.

Diversity

We heard from black, minority and ethnic ( BME) artists and performers of the challenges of their sector, and of their perception of a cultural 'mainstream' which is separate from their activity. We will use these terms for ease of reference.

There was a universally held view that there should be better connection between the mainstream and BME creators and organisatons. This view extended into all aspects of cultural provision and delivery, from grassroots outreach work to marketing, with the key purpose of developing opportunities and audiences. We were persuaded that there are creative opportunities for collaboration between artists and also audience development by mainstream cultural providers through a closer working relationship with BME creators and organisations.

Some contributors anecdotally suggested Scotland "is ten years behind London and Manchester…" in its approach to support for, and integration of, BME initiatives. There was a recognition that young people are a core audience for BME and 'cross-over' development work, and that there is far greater scope to promote events than is currently taking place.

This is an area we feel is extremely important and not one that can be summarised, or assisted to the level it requires, with a few recommendations in this report. We feel it requires a focused and methodical analysis to clearly identify the opportunities and actions that can address the current deficiencies.

8.5.4 Our thinking

Cultural planning is not about delivering arts and culture, but it is about cross-sectoral strategic local development. The cultural third sector - voluntary and social enterprise - is well placed to lead on this agenda, in partnership with support from the public and private sectors, as proposed for the Cultural Planning Partnerships.

We are persuaded that sustainable cultural development requires this cross-sectoral partnership to be successful. It needs to be combined with clear, shared aims, provided by the production of local entitlements, and the resources to implement them. We recommend strongly that the philosophy of cultural planning is adopted as the operational cornerstone for delivery of culture locally and nationally.

There are a number of organisations in Scotland and Europe who have experience of this approach. We recommend that initiatives be put in place to develop and share this experience, particularly with local authorities. We understand that the embryonic Scottish Cultural Planning Steering Group may share this aim, and may indeed be the most appropriate vehicle to undertake this.

The Scottish Executive should establish and support a Commission, or similar body, to consider further cultural diversity in Scotland and how best to achieve a successful balance of different cultures within one country. This is an issue which should also be considered by the new cultural infrastructure

8.6 Local government

8.6.1 Our consultation

Local government has been an enthusiastic contributor to the Commission's meetings, written submissions and Thinking Groups, as well as being represented on the Commission Board itself. VOCAL and COSLA combined forces to prepare a considered, thought-provoking and helpful paper over several months. This focused on the key issues of rights and entitlements and the organisational infrastructure, and we have presented their thoughts on these issues in the relevant sections.

Several local authorities produced substantial written contributions focusing on such general issues as the arms-length principle of government, and specific concerns, for example, the fabric of their cultural estate. We have included these observations in the relevant sections of this report. Similarly, the contributions we have received from librarians, archivists, arts development officers, cultural co-ordinators and elected members are integrated within the text of the report in the appropriate sections.

Local government contributions tended to emphasise the importance of the democratic principle and the local mandate for provision and decision-making it implies. However, we heard equally clearly from the cultural sector an almost uniform concern that the entire responsibility for decision-making and provision should not rest within the hands of the local authorities. The reasons for this were varied, although they tended to focus on three areas:

• lack of experience or knowledge of the working practice of creators, and therefore a lack of empathy with their needs

• overly bureaucratic to deal with, from venue-booking to accessing grants

• inadequate investment in facilities and financial support.

Several local authorities were often referred to as examples of particularly poor cultural provision and support. The tables of financial investment (see Annex A) also suggest a great disparity in levels of priority cultural provision between authorities. We understand this frustration from the cultural sector to reflect the First Minister's desire to create a more level playing field in terms of levels of provision across Scotland. This was indeed one of the key reasons the First Minister identified cultural rights and entitlements as a way of redressing this imbalance.

It seems clear from both written and anecdotal evidence that the difference an enthusiastic and supportive local authority can make to cultural provision is immense, with the converse also holding true. We heard from many local authority employees who were also frustrated at the seemingly low priority their service received within their authority. Most welcomed the introduction of national standards and entitlements as a positive way of addressing this. Interestingly, several urged the creation of an inspectorate-type body to ensure that these standards were being delivered properly.

There was near-universal agreement that the current legislative position invoking 'adequate provision' was no longer appropriate. Some felt this lack of definition had been the root cause of the unequal levels of provision across local authority boundaries. We found, in general, a willingness from local authorities to look at ways of delivering some provision across geographical boundaries. This would be a welcome and practical development and, in some cases, is already happening through the community planning process.

We were reminded by the local government sector that they are willing and feel they have the ability to deliver culture locally to a greater extent than at present. However, they require the financial resources to do this.

8.6.2 Our thinking

Local government is key to the current and future success of cultural provision and development in Scotland. Local authorities have been long-term custodians of Scotland's collected cultural artefacts in their museums and galleries, and of its knowledge in their libraries and archives. They are active supporters and providers of cultural activity in its most diverse forms, from festivals and gala days to workshops and classes. Crucially, they are also providers of formal school and pre-school education.

In any infrastructure or policy deliberations on national provision local government occupies a central role. We have recognised this in our options presented in Section 10. Also, as outlined above, they are the key partners in the proposed local cultural planning partnerships. As suggested above, we believe the philosophy of cultural planning should determine the nature and style of cultural provision. Local authorities should take the lead in establishing and servicing these partnerships. However, they should recognise that they are one, albeit important, player on them. We suggest the composition of these partnerships might look like this:

Cross-boundary working will be essential to ensure provision of some types of cultural provision or activity in some areas, for example, access to major collections and events. We also believe the process of developing joint strategies for provision will ensure a more cost-effective result, enabling savings to be re-directed at front-line provision.

We recommend that networks of local cultural partnerships be established, with their nature and composition to be determined by the partnerships themselves. These partnership networks should consider opportunities for cultural provision across boundaries, joint posts, joint delivery, cost-sharing, and negotiation with national cultural agencies. We believe financial incentives, perhaps initiative-based, to encourage partnership networks should be provided by the Scottish Executive or its appointed agency. Such networks might look like this:

Local government should be represented in any national policy and decision-making body. In future years, additional capital and revenue investment is likely to be required to enable cultural entitlements to be fully implemented, and for national standards to be raised. We recommend that local authorities should be:

• invited to show how they will amend existing priorities to reflect this

• work collaboratively with other authorities and agencies to achieve this

• given assistance to identify new ways of developing income streams or financing

• where appropriate given additional resources to assist delivery.

8.7 Voluntary sector

8.7.1 Our consultation

We received many contributions in writing and in meetings that justified our belief that the bulk of cultural activity in Scotland is undertaken by the voluntary sector. Voluntary organisations provide opportunities to participate in and to attend cultural events.

Scottish Executive

The Scottish Executive has laid out its key outcomes for the future of the voluntary sector in its Volunteering Strategy. This includes:

An intention that the strategy will deliver:

• an increased range of young Scots aware of volunteering and the benefits it brings to volunteers, communities and organisations, as well as improved awareness amongst young people of how to access volunteering

• increased range of adults aware of the benefits of volunteering and how to get involved as a volunteer

• experiences that match the needs, aspirations and lifestyles of volunteers

• improved opportunities for skills and personal development through volunteering

• higher standards of volunteer management in both the public and voluntary sectors

• more effective measurement of policy which impacts on volunteering and Scottish Executive's investment in it

• better evidence with which to identify priorities for Scottish Executive interventions to embed a robust culture of volunteering in Scotland. ⁴

8.7.2 Characteristics of the sector

We commissioned Bonnar Keenlyside to undertake a study into the input of the voluntary sector in Scotland ⁵ to help establish an informed view of the contribution the sector makes to Scotland's cultural landscape. Their findings were reported in Section 3 and also inform the rest of this section. Over 4,500 groups were identified in the Bonnar Keenlyside study, in a wide range of activities from archaeology, opera and Scots language through to arts, dance and opera.

This figure represents only a portion of the overall voluntary sector. Research undertaken by the SCVO, also reported in Section 3, showed that arts, sports and culture made up 40% of voluntary organisations (estimated to be around 50,000 organisations) making it the largest segment of the voluntary sector in Scotland. ⁶ It also has the highest number of volunteers (38%) of what Volunteer Development Scotland estimated to be a total of 1.76 million adults.

These survey responses reflect a healthy diversity of activity and demonstrate a very close alignment with the strategic priorities of the Scottish Executive's National Cultural Strategy and of the strategic functions of bodies such as the SAC and Historic Scotland. We saw in Section 3 that the voluntary sector is responsible for 3 million attendances at activities, events and facilities per year, equating to over 100 cultural opportunities being provided by voluntary cultural groups in Scotland each day of the year. The attendances alone represent over ten times more than those attending performances by the national companies.

Most professional cultural sector organisations are often dependant on voluntary staff who volunteer labour and skills, and also help fundraise and staff major events. Indeed most Boards, from the local drama company to the national collections, comprise volunteers. Their contribution is vital to the voluntary sector in Scotland.

Sources of income

Most organisations rely on their own activity (membership, fundraising, sales, admissions) for the majority of their revenue. Otherwise, the most important sources of funding are local authorities then National Lottery/Awards for All. A total of 38% of respondents to the Bonnar Keenlyside survey were not dependent on any subsidy and were entirely self-sufficient.

Recognition

Despite the evidence of the valuable contribution of the voluntary sector, providing cultural activities and venues that would not otherwise exist, there is a strong feeling that this contribution is not currently being recognised and valued by public bodies.

8.7.3 Issues for the sector

Further research undertaken on behalf of the Cultural Commission, together with consultation responses and research conducted by Voluntary Arts, ⁷ identified a range of needs for the voluntary sector in Scotland.

"The voice of community based groups does not seem to be heard, even though we have in the past screamed out loud for help, our screams seem to fall on deaf ears".
Mr Stephen Lyden, Chairman Drummy Tech

Status

Status is a key concern for many in the sector. Our consultation and research revealed the following issues:

• lack of recognition of the role of the voluntary/community sector in the provision of culture in Scotland

• status of the sector with local authorities, public bodies, and central government

• need to involve the voluntary sector in the planning and development of cultural activity at a local, regional and national level

• establishing the best partnership between the professional and amateur sectors

• need to have a strategic lead for the sector.

"We need to build upon local, grass-roots activity."
Mark Hope, Woodlands Art Association

Administration of the sector

Other concerns focused on the sector's administration. Issues included:

• fragmentation of the sector - no sense of 'the voluntary cultural sector'

• need for greater networking and co-operation

• requirement for leadership

• collective procurement of services for the sector - insurance, marketing, professional services

• collation of variety of resources into a one-stop portal for the sector

• requirement for better data on the sector locally and nationally

• need for on-the-ground development workers at local or regional level.

"A national overhaul of voluntary sector funding is desperately needed. The current funding trail is a nightmare for small organisations".
Linda Morpurgo, Lochgoilhead Fiddle Workshop

Operational issues for voluntary organisations

The third area of concern for voluntary sector organisations was around operational issues, including:

• financial sustainability - ability, time and resources to raise funds restricts activity

• rising operational costs - rent, insurance, IT, etc

• funding

"The key issue for a small rural community such as ours is funding. Whether it is the community putting on a cultural event itself or inviting visiting artists, the target audience is always too small for ticket sales to cover costs."
Jan Brown, Secretary Craignish Village Hall Committee

• renewal - attraction and maintenance of new members and especially committee members

• ageing profile of members, and audience; lack of turn-over on committees

• need to attract a wider range of people, young people in particular

• attracting audiences

• support to improve standard and quality of work

• capacity - a need to invest in key skills training and equipment (computers etc) to allow the sector to develop

• finding appropriate venue for activities

• incentives for volunteers, particularly committee members

• developing systems of evaluation - to support value of work

8.7.4 Russell Commission report

The Russell Commission was established in 2004 to develop a new framework for the UK on youth action and engagement in voluntary activities. Following a consultation exercise, the Russell Commission published its findings and recommendations in January 2005. ⁸

Opportunities for voluntary activity by young people were considered in the areas of media, art, design, music, entertainment, sport, animals and medicine. The report recommends that:

• the image of volunteering needs to be re-branded as fun, interesting and normal in order to encourage a wider range of young people to participate

• the benefits of volunteering should be presented to young people as: personal development, personal interest and relevant to young life

• access to information about volunteering opportunities could be improved by creating an online resource or 'national hub' that is up-to-date and linked to other youth sites

• volunteering advisers should be established with access to schools and clubs, and teachers should promote volunteering

• voluntary organisations should ensure that they have secure funding to put in place youth-centred proposals as well as ongoing training

• procedures to make young volunteers feel more valued should be established

• opportunities should be provided for young people to become involved at every stage of developing voluntary organisations so that they become more youth-led

• peer champions and ambassadors should be identified and enabled to promote voluntary activity and provide advice and mentoring.

8.7.5 Good practice

Project Scotland, a full-time volunteering programme for young people, is a partnership between the Scottish Executive and the private and voluntary sectors. It aims to transform the lives of young people through volunteering experiences and to foster a volunteering culture amongst the young. Project Scotland has been operational since Spring 2005 and is arguably ahead of the Russell Commission in terms of its timing. As the project evolves, this initiative will go some way to addressing some of the renewal and retention problems experienced by the voluntary sector in Scotland.

The West Lothian example below illustrates how successfully the potential of the voluntary sector can be realised through a strategic approach and with modest investment to create a voluntary sector development co-ordinator post.

The Commission believes that this approach is worth repeating in other areas. We are aware that the nature of the voluntary sector means there is a considerable 'churn' of individuals and this will not always make establishing a Voluntary Arts Council the most appropriate means of engaging the local cultural community. We are persuaded, however, that a little additional practical resource is often the 'tipping point' for voluntary cultural activity and, therefore we strongly advocate the creation of such posts.

8.7.6 The importance of the voluntary sector in culture

The voluntary sector is a vital but often unsung part of Scotland's cultural infrastructure. The sector is a source of tremendous experience, energy and talent and voluntary groups are ideally placed and motivated to help ensure the broadest possible access to cultural activity in Scotland. They should become key partners in decision-making and delivery of cultural activity, locally and nationally.

Comparatively small investments, that address key issues of training, co-ordination and incentives to counter volunteer burnout, would ensure a disproportionate payback to the country's cultural provision and we hope that more funding will be available for the sector in the future.

8.8 Private sector

8.8.1 Our understanding

There is a significant and growing industrial base for culture in Scotland - recording studios, the games sector, broadcasting, professional teachers, commercial galleries and photographers. We consider these in our section on creative industries, later in this section.

This section of our report will focus on the role and responsibilities of the private sector, and its relationship with cultural bodies. We understand this to be in particular:

• sponsorship and donations received by a small number of generally larger arts and cultural bodies from business

• support, often professional services, received in kind by smaller cultural organisations and bodies

• funding provided locally for cultural bodies and organisations, events and festivals

• support for voluntary cultural bodies and organisations

• philanthropy and support from major donors and entrepreneurs for the arts and culture.

8.8.2 Our consultation

We received written submissions from across the private sector, ranging from whisky distillers to banks and the Royal Mail. All of these submissions, including Art & Business ⁹ called for the role of business to be recognised as being a partner in cultural development. Many businesses, including the Scottish Council for Development and Industry ( SCDI) ¹⁰ and the Royal Mail ¹¹ spoke of having key corporate social objectives focused on being active supporters of the artistic and cultural life of Scotland.

Across the business community, there was a perception that arts bodies do not always take sufficient account of business' desired outcomes in sponsoring an event. Many larger sponsors were said to be of the view that the media coverage of the arts provided little incentive to sponsorship and support for cultural life. ¹²

During our meetings similar views were expressed. We also heard, however, the cultural sector highlight the difficulty in securing funds from the businesses because of the lack of people with the necessary skills or the time. Diageo Global Supply, in its December 2004 submission, suggested:

"all too often, cultural organisations fall at the first hurdle because they don't have the appropriate administrative person who is an expert in form filling and wading through impossible guidelines".
Arts & Business Scotland expressed the pertinent view that:

"while many businesses do indeed support cultural development, it must be recognised that this is done for specific business purposes and should not been seen as mandatory".

Consultees hoped further action on improving understanding would encourage more businesses to invest. Involving businesses formally in the decision-making structure at national, and local, level was identified as one way of achieving this. However, we were told the majority of businesses have no interest in sponsorship at any level, which creates a key problem in expanding the base of giving in Scotland. Also, in times of recession or market pressure, we must recognise that sponsorship in all forms tends to be a low priority.

8.8.3 Issues for the sector

We acknowledge that the sponsorship market is crowded and the approach to the private sector must be re-thought. True partnerships between business and culture are likely to be driven by a genuine desire for shared benefits founded on strategic co-operation and a relationship based on mutuality. There are many good examples of effective co-operation between cultural organisations and the business community as the range of annual nominees and winners of A&B Scotland awards demonstrate.

We believe a managed evolution of attitudes and practices is required, not a revolution. A&B Scotland has advanced a successful multi-faceted approach, encompassing skills exchanges, board placements, creative partnerships as well as sponsorship.

Understanding the business sector

Some of our contributors suggested there was little scope for much additional investment as the business sector was already giving as much as they are likely to do. Major sponsorship is undertaken by a relatively small number of companies operating mainly in financial services, utilities and the drinks industry. A decision by any one of these companies to cut back on their contribution (in its broadest sense) to Scotland's cultural development would have a significant and very immediate effect.

Many smaller organisations such as professional practices, architects and accountants, also make significant contributions of time as a voluntary act. These contributions are invaluable, in particular to smaller cultural organisations and voluntary bodies across Scotland.

Much of the feedback from the private sector centred on making the interaction between business and cultural organisations simpler. There are examples of good processes and good relationships, but there is undoubtedly scope for improvement and for making the systems simpler.

The wider cultural image of Scotland is particularly important for companies who brand themselves as being Scottish. The Executive have taken a lead in events such as Tartan Week and Scotland at the Smithsonian to demonstrate that effective planning and delivery with the cultural sector can yield positive media coverage. The private sector should be a full partner in planning such events. However, our evidence from the business community suggested the perception of an apparent reluctance by government to recognise the contribution of the private sector. A difficulty in persuading Ministers to attend sponsored events or to promote sponsored initiatives was cited. That perception may or not be founded on fact, but it is damaging and should be addressed.

The Scotland Funds

The highly successful American Ireland Funds has inspired the development of Scotland Funds, promoted by Jim Mather MSP with the support of other members of the Scottish Parliament Cross Party Group on the Economy. The mission of the Scotland Funds ( TSF) is to "activate and involve the Scottish Diaspora, initially in the USA, in the delivery and funding of charitable projects, which will address the issues of deprivation, education, cultural development and economic regeneration and by so doing enrich the lives of all those who participate in whatever capacity". ¹³

Key findings from a feasibility study have confirmed the project's viability with:

• other diaspora-building organisations in the US enjoying considerable success e.g. the Irish, Italian, Norwegian, Arab and Indian communities

• diaspora organisations do best when they develop a positive and optimistic direction aimed at making the 'old country' as prosperous and vibrant as it can possibly be and thereby optimising its ability to uphold and maintain traditions, cultural differentiation, values and the national common-good.

The Commission welcomes this initiative and the prominence being given to cultural development in the remit of The Scotland Funds.

Creativity

We were told that, for the private sector, creativity is a key competence for individuals and organisations, irrespective of the process or function in which they are engaged. The skills and mentality to change, to redesign, to re-engineer and to invent are vital in the marketplace. This is supported by the First Minister's assertion that the cultural community should be the dynamo for Scotland's creativity, which is "as necessary in the boardroom as the playroom". Creativity is arguably the strongest tie that binds the cultural community to the private sector in Scotland.

"Energy, creativity and diversity might not appear on our balance sheet, but they all play central roles in driving our business forward .Our relationships with the arts have proved to be invaluable tools for exploring these important themes within our business, through innovative training programmes and professional development opportunities."¹⁴
Gavin Neath, Chairman Unilever UK

Employees

We frequently heard claims that the benefits to businesses, and their employees, obtained through their investment in the arts and culture is often understated and poorly articulated. Hundreds of thousands of Scots work for private sector companies. Through engagement with their employers, the cultural community can gain access to this great potential source of supporters and audience members.

The private sector consistently asserted to us that working with the arts helps to build organisations that employees can be proud to work in. By offering employees the opportunity to get involved with cultural organisations and in cultural activities, employers expect to see the benefits in terms of attracting and retaining talented, creative-minded individuals.

The private sector's consideration of Scotland's future as a knowledge-based, innovation-driven economy runs in parallel with our deliberations and heads towards the same conclusions. The right partnership between the cultural community and the private sector can deliver significant, tangible benefits for creators, employers and employees.

Developing cultural enterprises - an international example

The Société de Développement des Enterprises Culturelles ( SODEC) is a government agency that provides assistance for the development of cultural enterprise throughout the Canadian province of Quebec. SODEC was established in 1995 and its operations are overseen by the Quebec Ministry of Culture and Communications. ¹⁵SODEC's key functions include:

• arts and business:SODEC acts as a mediator between business and the arts. While sensitive to the needs of the creative community, it also shares the financier's concern for sound management and profit

• economic growth:SODEC works to ensure that the production, dissemination and export of Quebec culture is optimised to maximum economic potential. Its efforts have reinforced culture as a key factor in the economic growth of the province

• international profile: through its global network SODEC helps cultural industries to improve not only the quality of their products and services, but also their ability to compete effectively in Quebec, across Canada and around the world

• advice: having gained expertise through many years of consulting, assisting and supporting Quebec's cultural industries, SODEC shares its knowledge with the private sector in order to foster creative talent, promote profitable ventures and open up new markets

• exporting culture:SODEC helps Quebec's cultural enterprises to succeed in world markets through its Sodexport programme. SODEC also organises for cultural enterprises to attend as a group at international trade fairs and festivals.

We were attracted to the SODEC model, not only its role as mediator between business and arts, something that A&B Scotland currently fulfils, but also its focus on the economic benefits of cultural activities and international profile and its specialist development of the business skills of the cultural sector. The SODEC model appears to be a practical means of developing the appropriate business skills base for the cultural sector, articulating the economic benefits of cultural activities to the private sector, brokering investment, and raising the international profile of culture.

Giving

Philanthropists and entrepreneurs are working successfully in partnership with government and its partners to deliver improved public services, for example Tom Hunter is supporting the Executive's drive to promote entrepreneurship within our schools. At present, there is no comparable high profile donor or entrepreneur in the cultural sector although we believe that an initiative could be developed that could be attractive to both parties, perhaps also linked with schools.

Many countries have adopted measures to encourage corporate investment in the arts and culture as well as giving by individuals and businesses. Across Europe, Canada, Australia there are various schemes to support corporate donations, corporate investment, business sponsorship and private giving. Fiscal changes to promote philanthropy are a reserved power.

Although such powers are outwith the scope of the Scottish Executive we believe they should make representations to the UK Government in support of measures to encourage private sector donations and contributions to cultural causes. The Commission supports the report by Sir Nicholas Goodison, prepared for H.M.Treasury, which advocates tax breaks for donation to national museums and urges the Scottish Executive to support these recommendations.

Responsibility

Corporate Social Responsibility in Scotland ( CSR) has tended to be on ethical policies, such as fair-trade procurement, and on support for social good causes. An extension of CSR philosophy and practice in Scotland to include cultural engagement would help to formalise and stabilise the partnership between the private and cultural sectors.

"The universal language of art helps out companies around the world to work with their local communities at the same time as encouraging creativity and innovation both within and outside the business." ¹⁶
William, Vice-President Unilever Brand

Business and cultural planning

We underline our recommendation in Section 10 that local Cultural Planning Partnerships should include membership from the private sector. Partnerships with business should operate at all levels of cultural planning and government across Scotland and they should be integrated in the governance and operation of any new cultural infrastructure.

8.8.4 Our thinking

We have indicated above those areas where we believe the Scottish Executive might help to improve the environment for corporate giving. We have incorporated these into our recommendations at the end of this section. We also believe strongly, however, there is a need for an infrastructural solution to facilitate and accelerate many of the services our evidence outlined above revealed needed attention.

There are several services that are either not being provided in Scotland, or are disparate or undeveloped, that we believe could be brought together. This would stimulate the relationship between the cultural, public and private sectors, and have the practical outcome of generating greater investment in creativity and culture in Scotland. We were impressed by the experience of NESTA¹⁷ and SODEC - the former for its ability to broker relationships between the sectors based on their common bond of creativity, and the latter for its ability to maximise public sector investment by making the cultural sector more efficient.

We recommend the following services be aggregated as a discrete unit, or organisation, within the national cultural infrastructure:

• brokering investment: bringing together the private and cultural sectors for investment; sharing knowledge with the private sector to foster creative talent; promoting profitable ventures; helping identify new markets

• business advice: helping the cultural sector - maximise their commercial potential; operate their business more efficiently

• financial services: a range of banking services - loans, shares purchase; providing specialist knowledge i.e. copyright, IP

• developing income streams: working with cultural and public sectors to maximise new sources of revenue, or methods of financing, i.e. bonds; prudential borrowing; endowment

• international profile: helping cultural industries develop an international market and export their products and services internationally; helping attendance at international trade fairs and festivals.

We acknowledge that some of these services exist in part, for example, in the enterprise network. Where such expertise or provision currently exists we recommend the new unit/organisation co-ordinate rather than duplicate. The recent appointment by Scottish Enterprise of Cultural Enterprise Officers in three cities would provide excellent outreach for such a new body and the two initiatives should be incorporated.

8.9 Shaping the future

As the world is changed by emerging technologies so too is the cultural world.

• film is the most popular artform, according to a recent survey by the Arts Council of England.

• television and radio are the most popular forms of consumption of digital product with more than 50% of the UK now digitally tuned in.

• computer games now account for annual sales of £1.4bn in the UK - more than cinema admissions.

• access to digital content through computers, internet and broadband continues to rise exponentially.

• portable devices are now rolled out on a mass consumer basis ( e.g. games units, DVD players, ipods)

• mobile technology can now transmit radio, moving image, and games through 3G.

These are a few of the more obvious examples of the way existing systems and models of production, distribution and consumption are being swept away as the technology, talent and consumer move ever more freely. For example, the closed access system currently operating in the film industry, where a few international players control the means of production, distribution and consumption, is being challenged, as more and more elements of the system are being by-passed. The challenge for public policy and public intervention is therefore where to best operate.

Historically intervention has focussed primarily on the production or consumption ends of the closed system - looking at how to ensure a diversity of product and diversity of access in the closed system. However, if the closed system is being by-passed, public policy and public intervention is in danger of being by-passed and becoming redundant. We believe there is a strong argument for focusing policy and intervention on:

• the widest definition of media literacy: ensuring the producer/distributor/consumer is able to understand the plethora of choice presented to them and the opportunities to participate responsibly

• distribution rather than consumption: exploring how we can ensure that the consumer has the access to the widest range of product

• talent and creativity: everyone has the technical ability to engage in the open access system so we need to ensure the best talent has the opportunity to develop and thrive

• experimentation: exploring cross-platform opportunities for talent, production and consumption

• enterprise: we need to ensure the business models and business activity are best suited to exploit the opportunities.

Public policy and public intervention in screen-based media has long dealt with the debate on culture/industry by recognising the two are mutually supportive. There is, therefore, an existing model for wider industry engagement across the creative industries. We discuss the creative industries in Scotland and the opportunities to develop them further below.

We also illustrate a specific initiative - we have called it CultureScotland.com - as a means of delivering a national and unified strategy for digital cultural access that provides key components of the Scottish Executive's national cultural access and digital plan.

8.10 Creative industries

8.10.1 Our remit

The Commission was asked in its remit to consider "the creative industries, including screen and broadcasting" and to consider them in relation to cultural rights, infrastructure and the wider objectives of government, particularly in relation to enterprise and economic growth.

8.10.2 Our understanding

The creative industries are defined as those industries which have their origin in individual creativity, skill and talent and which have a potential for wealth and job creation through the generation and exploitation of intellectual property. This includes advertising, architecture, the art and antiques market, crafts, design, designer fashion, film and video, interactive leisure software, music, the performing arts, publishing, software and computer games, television and radio. ¹⁸ It is this definition of the creative industries that the Commission has used in its work and which informs this report.

Consultation and research has identified and confirmed the importance of the creative industries to Scotland. All the evidence suggests that they will become increasingly important as Scotland moves into the future for the following reasons:

Potential for economic growth

In 2001 PriceWaterhouseCoopers forecast an average growth of 10% per annum for the creative industries in general and rates of 20% for those companies involved in digital content production. This opinion is shared by Scottish Enterprise who suggest that the creative industries have the best prospects of all sectors for leading Scotland through a period of substantial economic growth, and plan to support and invest in the sector accordingly. Over the next three to five years, the sector aims to grow by 30%, increase exports by 15% and create up to 2000 new jobs with assistance from Scottish Enterprise. ¹⁹

Creativity will drive the economy

As we saw in Section 2, creativity has been singled out as the key driver of the economy by analysts such as Richard Florida. Creativity is a key ingredient in the success of businesses across the Scottish economy. It is through the application of creative skills that businesses transform goods and services to differentiated products that can be marketed. This reflects a range of creative contributions, from product innovation and design, to developments in digital media, and influences from the arts and diverse cultures. By increasing the distinctiveness of products and services, creativity allows large and small firms to compete in global markets on the basis of the added value of their unique appeal to consumers. Research for the Design Council and the DTI's Innovation Review bears this out, showing that design-intensive companies outperformed the FTSE 100 by more than 200% over a ten year period. ²⁰

The importance of creativity to business and the UK economy was recognised in the 2005 Budget when the Chancellor Gordon Brown MP asked George Cox, Head of the Design Council to lead a DTI study into the value and productivity impact of creativity and design in businesses and with the provision of £12m to the Arts Council of England to promote excellence in management and leadership within the cultural sector.

Leading the way

The most perceptive cultural organisations have realised the need for them to adapt to the major societal and economic trends outlined in Section 3 of this report. They are aware of the need to focus on the needs of the audience, of the increasing requirement to offer value for both time and for money and that they need to develop additional commercial revenue streams. Creative industries are entirely dependent on the market and we have heard repeatedly from those working in the sector that they are 'only ever as good as their last piece of work'. Whilst this volatility breeds as many failures as it does success stories, the highly competitive market has meant that the creative industries have to focus very sharply on the quality of their product and the needs of their customers.

Many, but not all, creative industries gain their market value from exploiting emerging technologies. If Scotland is to stay abreast of technological advances which are set to revolutionise the way we interact, the way we conduct business; the way we receive our entertainment and our culture; the way we educate ourselves; the way we locate, process and reuse information - in fact almost all aspects of the way we live - it is essential that we invest in the development of our creative industries at all levels because they will be at the forefront of these developments.

8.10.3 Our consultation

The level of response from the creative industries to the Commission's consultations was not as significant as was hoped, with around 30 substantive responses to phases one and two of the consultation, many of those from representative bodies such as the UK Film Council and the Producers Alliance for Cinema and Television ( PACT).

Realising the importance of this area the Commission sought to undertake a targeted consultation during the third phase, with a handful of questions specifically directed at the creative industries, but once more the level of response was poor. Despite the small response rate, those who did respond offer some illuminating comments. Meetings were also held with Scottish Enterprise, The Lighthouse, DCMS, Scottish Screen, Skillset, Creative Skills, Channel 4, the BBC, SMG and other key organisations.

Creative industries - a misnomer?

Throughout the research process we have been confronted with the view that the creative industries as a collective term is a misnomer for what are discreet and highly differentiated industries, each with their own issues and business models:

"Different sized companies have such different needs, mainly because of the budgets/resources they are working with. Certain industries can only exist small-scale and others only work at an industrial level. In fact to view them separately would be a major step."
Mongrel Creative Communication

"In addition to all the differences between macro and micro companies (well documented by exhaustive management research) the creative industries (sector) is different from most sectors in that it is micro and freelance dominated."
The Association of Integrated Media - Highlands & Islands

A number of people working in the sector informed us of the difficulty of getting people to see themselves as part of a sector and DCMS commented that something like 80% of companies operating in the UK are content with their current level of operation. ²¹

"…the creative industries (sector) is dominated by micro companies who spend most of their resources for their next piece of work; the only way you can get them to do anything is if you show them where the money is. If relationship building can be proved to be a stepping-stone to more business, then that's what they'll do. Otherwise forget it cos' they don't have the time. Again this should be industry led, and companies should want to do it because they see that it is beneficial for them".
The Association of Integrated Media - Highlands & Islands

This may help to explain the relatively small response rate the Commission received.

Improving public profile and advocacy

Despite the acute awareness of the discrete nature of the creative industries there was a consensus that:

"the term (creative industries) had lobbying value, had drawn political support that resulted in economic benefits."
Sector stakeholder meeting, Glasgow September 2004

Many respondents pointed to the role of Chris Smith, (both as Secretary of State for Culture, Media and Sport, as an MP and as champion of the Clore Leadership Programme) as a high level advocate for the sector at Westminster and Whitehall. A number of respondents stressed the need for more clear leadership in Scotland:

"One of the key overarching issues affecting both the creative and cultural industries is a lack of leadership. This is particularly true of the creative industries sector, which is dominated by micro-businesses and solo practioners, as well as being composed of diverse disciplines."
Stuart MacDonald, Director - The Lighthouse

However, others pointed to the success of companies such as the publisher Canongate (who have thrived outside the existing structures) and the creative clusters in England which have moved towards a non hierarchical leadership, and argued against a figure-head leadership model.

Having considered all the arguments put forward, the Commission recommends that the many disparate elements of the creative industries in Scotland should be pulled together to create a more coherent sector. In order to do this, a strategic approach will be required and small micro companies will need to be convinced of the need or the benefit of collaboration. There are a number of ways that this could be addressed:

• appointment of a high-level leader for the sector

• development or creation of a body to represent, fund and advocate for the sector - this would involve the collation of the services currently provided by a range of public sector bodies

• development of a body which provides shared services for the sector - to gain the support and membership of those working in the sector it is key to offer services that will have financial benefit; this could take the form of a Trades Union

• develop the role of the Cultural Enterprise Offices, recently introduced by the Scottish Executive (see case study below), into a one-stop shop for the creative industries.

Visual literacy and design in education

There was a strong feeling within the sector that education had not kept pace with changes in the world:

"Schools must start to teach 'visual literacy' - not so much about paintings, painting etc, but about how the world around us is formed, and how that impacts on all our lives."
Malcolm Fraser, Architect

"It is imperative that media literacy is taken seriously. We live in a visual culture and yet we do not teach our young people the language of our culture. Young people are bombarded by media on a daily basis - adverts, TV, video games, cinema, DVD's etc. More young people experience this media than read books. Yet we place great importance on literature, …writing and almost none on media. The majority of the population has not learned the grammar and language of new media and is unlikely to have had the opportunity to author any themselves. These core elements must be built into the curriculum. And it is not simply a case of fitting it in. It needs to be a mandatory subject for all, studied from primary level on."
David Barras, Strange Boat - Moving Image Education

As with general cultural education the importance of training of teachers and CPD in these areas was highlighted. A number of respondents stressed the need for continuing, adult or lifelong learning to teach adults design, visual literacy and emerging and new technologies and techniques. Whilst this issue is addressed elsewhere, it is important to note that this was raised by the majority of respondents. Many suggested some form of right to a cultural education; others suggested the concept of design as an overarching topic that could pull together the diverse creative industries. However, there was a consensus that the rights and entitlements process could usefully be used to equalize the status of the creative industries in relation to the arts sector.

Education and the schools curriculum are discussed more fully in Section 5 of this report.

Recruitment and training

There was recognition of the work of further and higher education sectors, but many participants suggested that more needed to be done to promote the creative industries as a career path, summarised by games company Realtime Worlds:

"The single biggest thing we believe we're fighting against is that our industry (games) isn't perceived as being a serious career by a majority of people, despite the overwhelming evidence to the contrary."

Scottish Enterprise identified a gap in the skills market not in entrants, but highly skilled and experienced workers, who had already established a career (outside of Scotland) and a need "to lure these Scots back."

Training needs to be increasingly industry focused to ensure that training meets the need of future employers. The approach of the Scottish Sector Workforce Development Plan developed for the audio visual sector, by key industry players, Skillset and the further education sector needs to be further developed across the creative industries. The new Cultural and Creative Skills Council will have a key role to play here and there is a need to work more closely with higher and further education and those bodies delivering continuing professional training to ensure it meets the needs of employers.

Scottish creative industries within the UK economy

The majority of participants acknowledged that the Scottish creative industries were working as part of the UK economy. The 2001 DCMS mapping of the sector identified the importance of the creative industries in Scotland, but it noted that London and the south east of England remain "the major magnets for the creative industries". ²²

This has a number of important effects on the sector in Scotland:

• skilled workers are hard to retain and focus is required on retention and skill development

• commissioning strength in the south east of England has a limiting effect on Scottish creative industries

• devaluation of our sector; an inherent disdain for the home-grown in relation to what one respondee called the "big-shots from down South"

• net export of money; one respondent suggested that £1b of marketing spend managed in Scotland is spent in London, equating to 10,000 jobs supported there and not in Scotland.

8.10.4 Public sector support for creative industries

Whilst the good work being done by Scottish Enterprise, Local Enterprise Companies, Scottish Screen, the SAC, local authorities and other public sector bodies was recognised, there was a clear feeling by both those stakeholders and the public sector bodies that more could be done to make the current approach more coherent. A number of areas, including media access, micro-companies, architecture practices and fashion, were identified as either falling between the remits of current bodies or not being best served by the current existing arrangements. This was summed up well by a participant at the Inverness seminar in September 2004:

"Organisational and sectoral boundaries get in the way of cross-sectoral, integrative thinking and action."

There was also a feeling that current public sector support was too conservative for a sector premised on creativity. This was seen to reflect an inconsistency between the uncertainty of the creative industries sector, where work could be plentiful at one moment but sparse in the next, and traditional civil service culture where people are employed on a fixed and stable wage and likely to be more risk averse in personality. The phrase used to describe the characteristic of the public sector was a "deeply ingrained fear of flair and innovation". The creative industries are primarily premised on a business model. We recognise, however, that there is evidence that there is a gap between the language of business and that of the creative industries.

"All the [public sector] organisations have different cultures, areas of operations, objectives, definitions of success and attitudes to risk. They all even talk in different languages and use different jargon."
Tom Bancroft, Caber Music

"Many public agency advisors still ask for traditional business plans and five-year projections, which is tough in most industries but laughable for the creative sector where you are only as good as the last film/game/album you cut."
Association of Integrated Media in the Highlands and Islands

Scottish Enterprise became aware of this problem, recognising that "many of this client group are reluctant to engage with conventional economic development services. Rightly or wrongly, because of the nature of their activities and their pre-commercial status, they feel ill-equipped to plunge into full-scale business development in terms of business plans, investment capital and global marketing". ²³

The cultural enterprise offices are a welcome development for the creative industries in Scotland and have the potential to be developed into a key part of a creative industries strategy for Scotland.

8.10.5 Specific issues from the consultation

The Commission received a great deal of information on the specific issues faced by the individual sectors that make up the creative industries. We note here some of the key issues raised and we expect these to be explored further after the Commission has reported.

Technology and new opportunities

Our remit requires us to take a long-term view in our work and consider an ambitious cultural policy that will endure for at least a generation. We were also encouraged to engage in innovative and radical thinking and solutions. In this context, we believe it is key to focus on the opportunities that technology and new forms of communication and new media will offer. During our consultation process, we heard repeatedly that new technology would present significant new opportunities and should be an important focus of our work.

"The changes we will see over the next 10-20 years will be technology driven and we must be bold and experimental in our attitude to all things digital and electronic. Interactive spaces with participation and real experience of exciting and entertaining art forms, games or experiences are going to attract audiences."
Mike J Morrison, Lean Team Resources

"Rapid advances in communication technology offer great opportunities for dynamic innovation in both the promotion of the arts and in new wave marketing. We propose that only a national approach… can assimilate these advances."
Scottish Arts Council

"We need to ensure everyone in Scotland feels comfortable in an increasingly digital world."
Morgan Petrie, New Media Executive, Scottish Screen

"The opportunity for Scottish arts provision to be expanded over the next 25 years to existing, new and young audiences can be achieved by setting up a digital development agency".
Hannah Rudman, Director - The Creation Consultancy

That technology will change the way that we interact and lead our lives is already well established. One need only look at the effect of the internet and email on the way we source and receive information, on the way we communicate and on the way we conduct commerce and business for the evidence. However, it is important to note digital media or new media are not an end in themselves; they are new ways of packaging and delivering content. These media will be redundant without messages to communicate and without creative content. Creative individuals are needed to produce the content for any new media. This is one of the major reasons why investment in creativity in Scotland is vital for our future.

Lev Manovich, one of the leading commentators on new media, outlines the key innovation of new media as their ability to deliver completely interpersonal (ie uniquely tailored) communications to a mass audience. ²⁴ The theory is primarily premised on the technology of millions of computers, all joined into a massive network, interconnected through the internet. These computers will replace current technologies such as televisions, radios, traditional internet and might replace printed media such as newspapers (although the realities of the internet revolution have taught us that people will not instantly replace existing forms of communication simply because new technologies exist). Such machines or sites are currently called rich media portals and they will have the potential to deliver many more developments. They could, for example, connect to libraries and archives, deliver virtual tours of cultural sites, and provide 'front-row seats' at major international cultural and sporting events.

Digital technologies are also transforming the ways that art and cultural products are produced. The tools required to create and produce professional graphics, animation, film, music and websites are now widely available at relatively low cost. The internet currently offers a system to market and deliver such products to a mass audience. Developments here look set to continue and interoperability (ability of distinct forms, tools and mediums to interact) will remain a key feature. These developments are having, and will continue to have, radical consequences both for the democratisation and delivery of arts and culture, and also for professional artists and creators. Because digital formats are, by their nature, infinitely reproducible they have profound effects on how we see art and culture. This is still premised on the unique art object despite technological changes prevalent since the 1950s.

At a more practical level, the music industry has had to cope with this fact and with the issue of mass duplication of its valuable content. The industry has been forced rapidly to adjust its business model. After a difficult start, the industry seems to have come to terms with the internet and has turned the possibilities that it offers to its advantage.

Digital technologies will mean a proliferation in the production of content, and easier routes to market for such content. Given the limits of public sector support available and the resource intensive nature of digital technology, exploration of niches within new and digital technologies should be explored. They offer Scotland the opportunity to be a leading global player and net exporter in one or two aspects rather than an average performer in a wider range of industries.

Digital rights management and e-payment

All the experts the Commission was able to draw upon stressed the importance of digital rights management and the associated area of electronic or e-payment. Digital rights management systems and tools are already in existence and they are currently being developed to protect the intellectual property rights of the content creators and providers.

The internet offers massive potential for commerce and entirely new business models. At present, however, the full potential cannot be explored due to restrictions on how people can pay for products and services and the security attached to such systems. Paying by credit and debit cards is still problematic, although many transactions use these media. In the UK, spending on credit and debit cards is relatively high: in 2001 over 20% of UKGDP was spent via cards of one form or another. However, security concerns present a barrier to accessing the benefits of internet commerce and such payment also has serious implications for consumer debt, which has been identified as a large economic and social problem for the UK. Usage of credit and debit cards is less high in Europe; Italy for example only spent 3.4% of its GDP through such cards in 2001. ²⁵

Whilst these are macro issues, the cultural industries are primarily concerned with the production and creation of cultural objects and content. Digital rights management and intellectual property rights are key issues for the sector and at present the Scottish cultural sector is not well served in such areas. Intellectual property as a function of a new cultural agency for Scotland is explored further in Section 10 of this report.

Digital television switchover

Scotland will be switching over to digital broadcasting before England with Borders switching in 2008 and Scottish and Grampian in 2009. This could present an opportunity to be a test-bed for digital broadcasting. Further details on broadcasting in Scotland can be found in Annex G.

Digitisation

Digital technologies offer the opportunity for cultural objects to be infinitely reproduced and manipulated and re-presented in alternative forms. As we suggest above, traditionally the arts have been premised on the uniqueness of such objects and the whole means of access to art has been based on a system which functions to collect and display the unique object - hence the existence of galleries and museums. The creation of art objects in digital formats will, in the long term, challenge the existence of such repositories. However, in the short term, digital technologies will offer the opportunity to make available access to the billions of cultural objects, or at least their digital facsimiles, which exist in both the public and private collections of objects and artefacts all over the world.

This is a radical challenge to the structures that currently exist, as the majority of museums and galleries have been premised upon local, regional and national lines and issues such as accessibility have been curtailed by geographic limitations. Until very recently, it was impossible to view the collections of the Rijksmuseum, without being in Amsterdam. Now it is possible to view many key items from their collection through interactive presentations.

Whilst the focus of digitisation needs to be national, because the internet transcends national and international boundaries this issue must be considered internationally. There is much work being done on the digitisation of collections in Scotland. However, the digitisation being undertaken at present is largely being done by museums and galleries on an organisational basis. As digitisation is a resource intensive process it is being done within the limits of what are already tight or restrictive budgets.

Interoperability and compatibility are key issues for any digitisation programme. In the future, as users become increasingly accustomed to utilising digital resources, they will demand fast, efficient and joined-up services and this will apply as much to the public as the private sector. There has been an aspiration to develop a strategic approach to digitisation and digital media within the Scottish Executive. An audit of the existing digital services in the cultural sector is being considered however there is a pressing need for a co-ordinated approach to be adopted. In the absence of a strategic lead, organisations may opt to develop their own digitisation projects and indeed many are under way. Unless these all adopt shared metadata, however, it is unlikely that they will be able to be joined up at a national level.

As part of the Executive's National Cultural Strategy there was a commitment to develop a national cultural web-based portal. The project was developed by the Executive, and was then passed to the Scottish Libraries and Information Council. There was an aspiration that this would develop into a one-stop shop for Scottish culture, but unless digitisation programmes are co-ordinated this may prove unachievable. Scotland has the skills base to deliver a world-class digitisation project. The skills. however, are not in the public sector which is tasked with delivering such a project, they exist within Scotland's creative industries.

The Commission recommends that the Scottish Executive should take the lead in developing a National Digital Strategy for Scotland.

Television and radio

Our consultation revealed views that public service broadcasting in Scotland needs to reflect the changes in Scottish society and the new ambitions of the nation, not just a variation of the regional model. As Ofcom frees ITV companies of their obligations to provide non-news local programming the role of BBC Scotland should be developed. With the switch to digital television, it was suggested that it may be possible for new channels to come into existence and Scottish Ministers should consider how a separate channel for Scotland might be financed and set up.

Other points raised in consultation were:

• reassess the needs of Scotland, including those of Gaelic culture, in relation to public service broadcasting

• given the trend towards devolution of production within the BBC, a fairer share of the licence fee should be spent in Scotland

• Scotland's playwrights, poets, historians, musicians and actors need more outlets for their talents in Scottish broadcasting

• Radio Scotland's role needs to be developed and should include more of the higher- value forms such as features, documentaries, drama etc

• a digital radio channel should be devoted to music in contemporary Scotland

• broadcasters need to be more closely involved in further and higher education and professional development to ensure closer alignment between training and industry needs.

Film

We summarise the main issues raised in consultation below:

• serious concerns were expressed from many quarters that Scottish Screen's role and remit requires reconsideration

• there was a great deal of support for tax incentives or alternative strategies to help bring more film productions to Scotland

• a need for a more forceful promotion and distribution of Scottish film productions and for Scotland's impressive role in cinema history to become common knowledge was identified

• the fact that Scotland does not have a single distribution company was felt to be a major gap in the industry infrastructure

• a clearer strategy for film exhibition is required tying together regional film theatre and harnessing the voluntary sector in the form of film clubs; digital projection and delivery may facilitate such a network, with docspace ²⁶ acting as a useful pilot project

• a need for better moving image education: Scottish Screen, deliverers, schools and Media Access Projects should collaborate more closely here

• a national film company, perhaps on the National Theatre commissioning model, which is commercially viable should be considered.

We also heard views that the role of the Edinburgh International Film Festival needs to be better understood, both within the film industry and within the creative industries in Scotland. Funding should be better aligned with its international comparators and the event and its activities should be built into an integral element of film in Scotland, having a year round presence.

Advertising

We heard representations that incentives should be considered to encourage Scottish companies to spend their advertising budgets in Scotland. There was also a perceived need for training in higher and further education to be more closely aligned with the needs of the advertising industry in Scotland.

Design

Points raised in consultation were:

• design may offer a useful 'connective tissue' for pulling together the disparate creative industries

• design, or more broadly the study of the world around us and how objects are made, should be considered in the context of the Curriculum Review

• a representative body for the design industry in Scotland should be considered; it should build upon the work already undertaken by the Lighthouse and should work with the UK Design Council.

Designer fashion

We heard that support for designer fashion in Scotland has been limited. There is the potential to build upon Edinburgh Art College's reputation in this area and the full range of services and advice offered to other areas of the creative industries should be available in the fashion sector.

Interactive leisure software and games

The games industry needs to be better served by careers advice and within further and higher education. Again, such courses should be aligned with the needs of the industry.

Music

Music is covered in Section 6 of our report, within the arts sectors.

Publishing

Publishing is covered with literature in Section 6 of the report, within the arts sectors.

Architecture

Architecture is covered in Section 5 of the report under Education and also in Section 7 in the built environment sector.

Crafts

Crafts are covered in Section 6 of the report within the arts sectors.

8.11 CultureScotland.com

In this section we offer a practical illustration of a national initiative that addresses, through new technology, issues of access and of the responsibility of recipients of public investment.

Our basic premise is:

All recipients and programmes that receive public funding from Scotland, or are being supported by Scottish public bodies, have a responsibility to provide access to any and all digital materials generated.

And the corollary:

The citizen has a right to all digital publicly available cultural materials through channels that are clearly defined and suitable for purpose.

8.11.1 A national strategy for digital culture

Scotland is world leading in the field of digital culture - projects such as SCRAN, Am Baile and the National Archive have been delivering for up to eight years. A national strategy is required in order to build on this Scottish leadership and establish a unified approach.

Scotland's advantage over many other countries is its coherent national identity. On the world stage it is big enough to be influential and small enough to act. However, there exists a broad range of portals, websites, publications and digital service that have been fed by cultural and heritage sources in a fragmented manner. Scotland needs a prevailing digital strategy around the national cultural wealth that can unify the disparate contributors.

A national and unified strategy for digital cultural access will provide key components of the Scottish Executive's national cultural access and digital plan while also addressing such issues as:

• broader social inclusion and social justice

• enhanced and unified educational provision

• provision for lifelong and recreational learning

• improved understanding of citizenship and cultural awareness

• access for the remote Scots diaspora

• support for the tourism industry

• technology based economic development

• establishing an international reputation in cross-sector development.

The goal is to be world leading in the delivery of cultural heritage in the digital environment by 2015. The vision for the strategy is a singular, cohesive and integrated national approach to the digital presentation of Scotland's cultural heritage, with the presentation of materials in a user driven format and a unified contribution from the broad range of cultural institutions.

8.11.2 National infrastructure requirements

By reviewing the structure of digital provision an assessment of the most suitable national infrastructure can be assessed. The process has four key phases which require a supporting infrastructure.

Digital capture and creation

A unified authoring process will be established to ensure the broad range of end user needs can be addressed, that standards/quality are integral in the contribution process and the supplied knowledge can be suitably managed and archived.

Capturing the different types of metadata is critical to the use of both the individual artefact and the repository as a whole. A practical example of this would be the different descriptions used by librarians compared with educationalists and how both are relevant and require capture.

Digital management

A central repository will be established, managed and supported by a range of tools for manipulating and preparing content. The version control and archiving is necessary for legal accountability, back up and disaster recovery. Strong technical and management processes will be required to secure a national repository.

Digital publishing and presentation

This part of the process manages the content in the stored repositories and establishes the final pages and their channel to market. The style of the output can be determined at this stage. Non-technical page templates will be established that enable the provision of the various forms of multimedia (image, audio, video, virtual models) and their associated data in a nationally coherent format. The provision of the material must be adaptable to multiple formats for web, print, video, handheld device and other future formats if the service is to be sustainable in the long term.

Support requirements

Policies standardising the requirements of the cultural contributor base may be required in order to ensure that all publicly funded digital assets are made available to the combined national service. European examples of this (compulsory contribution of digital material to a national repository) have proven very effective in growing both substantial data collections but also providing a unified national focus for the cultural sector in both the standards and sustained digital provision arenas.

8.11.3 Operational issues

Legal provision for the digital artefact delivery has to be managed across the four stages described above. The ownership of the digital asset will remain with the original contributor. The key to securing greater access and provision of digital material is to secure a 'right to use' at the point of creation. Archiving and preservation of material is critical to securing a medium term future for the project and its materials.

Project management for such a national project is critical. Few cultural centres have either the workflow process or staff experience to manage such a complex environment. Strict standards, procedures and timelines with experienced staff to implement them are the key to success. Nationwide training will be required to ensure consistency, adherence to standards and retention of a high quality threshold throughout the workflow process. This will apply specifically to the digital creation contributors (institutions across Scotland) upon which subsequent delivery standards will depend.

Service levels agreements will be put in place between the providers of the creative, the operators of the repository and the range of publishing and presentation environments. These initial service level standards will form the basis of national quality evaluation and analysis and will lead to continuous improvement programmes throughout the national environment.

Technology experts for hardware, software and operating systems will be required to combine to deliver the platform from which the national cultural digital proposition will develop. In addition, workflow and systems leadership will be developed in line with service and market expertise from key current suppliers.

Research and standards development will engage Scotland at a global level to establish and influence the future requirements that may impact the service. This could be aligned with such developments in the Scottish Higher Education environment as the Digital Curation Centre in Edinburgh University.

8.11.4 The National Repository and Cultural Resource Archive

The basis of the implementation is collaborative cultural institutional support to develop CultureScotland.com as the definitive web service delivering cohesive support for a range of user needs. The following diagram outlines the structure of the national implementation.

CultureScotland.com - the national digital infrastructure

By establishing expert knowledge centres around digital type ( e.g. video), specific cultural material ( e.g. theatre) or Scottish subject areas ( e.g. Burns) the collective national knowledge can be gathered in a cohesive manner and built upon. Larger institutions will still provide web access as marketing tools for their own organisations, medium size institutions may form regional conglomerates or subject based 'mini' sites while small institutions will be offered a delivery service through the National Repository.

All digital material will conform to national standards and will be deposited in the National Repository for distribution through authorised or licensed channels in a unified and user focused manner. The National Repository and Cultural Resource Archive will be established, built around existing expertise. Its functions will include:

• provide strategic direction for CultureScotland.com

• establish policy around key areas of the support infrastructure ( e.g. standards)

• source suitable funding from a range of public and private funding sources

• authorise and authenticate the digitisation of Scottish culture

• co-ordinate the development of the national digital contribution

• provide an archiving and presentation service for digital multimedia items

• represent a unified view of user needs from licensed channels

• develop international partnerships

• deliver an integrated research and service improvement process for the national digital cultural environment

• unify the commercialisation of the digital national cultural heritage.

Funding

The initial tasks requiring funding would include:

• establish programme of user needs analysis from existing centres of expertise

• establishing an automated database of digital projects for the cultural sector

• clarify and capture national best practice in digital cultural provision

• identify and develop the legal workflow process

• Identify and ratify national digital standards

• identify, capture and develop research materials and programmes

• clarify national training and support needs

• establish the economic development impact plan for the project.

Capital funding would be required to develop the infrastructure and business structure of the National Repository. Whilst establishing a new organisation may seem attractive, time and risk constraints may lead to consideration of alternative options such as using existing delivery vehicles and adapting their business terms as appropriate.

The process of digital creation should be ring fenced within the budget allocations of national institutions with medium and smaller organisations' digital activities being supported through the national repository and based on defined user need. This annual budget will be required to digitise and preserve the nation's pre-eminent artefacts and performances as well as any 'at risk' items.

The delivery service will have a range of business models and will need funding as appropriate. The value of integrating culture into educating is a national priority and should be addressed through sustained public funding. Commercial activities such as selling cultural imagery will need to be self sufficient and commercially viable.

Summary

To fulfil a national obligation for the citizen's access to culture irrespective of geographic location, social or educational background in a universally accessible format, we believe that the only sustainable and successful solution is a unified national infrastructure. The additional goal of global leadership can be attained if the collaborative strength of all those engaged in the digital area of cultural delivery join together to develop a unique and supportive environment within Scotland.

The proposal will generate a technology expertise-based economic development programme with flexible cultural delivery at the heart of its purpose. It will engage across the nation and beyond, enabling Scotland to develop re-sellable technology expertise while delivering a cultural resource that will significantly enhance the national landscape.

We recommend that the Scottish Executive examine the principles behind this proposal further.

8.12 Think Tank

8.12.1 Our consultation

Many contributors noted the absence of a forum for developing and sharing new ideas. Several submissions referred to the need for a Think Tank.

We invited a small group led by Abertay University to develop the idea of an independent stand-alone body. They envisaged a small unit comprising a Director and a few core staff, attached to a university, developing thinking on new ideas as proposed by government and other national agencies or tendering for commercial work.

We also noted during the period of the Commission that the Presiding Officer has established an embryonic 'Futures Forum' based at the Scottish Parliament. This body, as we understand it, may be commissioned to consider aspects of public policy and to forecast how Scotland may place itself globally over the next 10-20 years. We are also aware of the existence of several bodies that already undertake, primarily or partially, consideration of cultural policy, e.g. the Centre for Cultural Policy Research at Glasgow University and the Film and Media Department at Stirling University.

There are also professional consultants who specialise in cultural policy and provision and, increasingly, organisations such as RSAMD are broadening their skills base to include consultancy services.

As we have noted earlier, a suggestion frequently made to us was for better statistical research into cultural activity and trends. We also heard from several sources of the need for an 'Ideas Exchange' - a place where good ideas could get considered and, if appropriate, guidance offered on where and how they might get developed.

We were often referred to the work of NESTA, the National Endowment for Science, Technology and the Arts, as a model of good practice for stimulating and supporting ideas and new thinking.

8.12.2 Our thinking

While we were initially drawn to the concept of a stand-alone Think Tank, it became increasingly clear to us that the primary duty required at the moment is to co-ordinate the work already being undertaken in Scotland. The Scottish Executive Research Unit has recently brought together the main national cultural agencies with a view to co-ordinating the gathering of statistical data. This is a very welcome development.

It is an approach that should be replicated with regard to new cultural thinking and policy development. An overview of existing cultural research and development work is required. This should be combined with the ability to commission new work, as appropriate, where gaps are identified. We feel that this function should be a clear, and discrete, part of the new cultural infrastructure. We also feel it may sit more comfortably outwith government, although we recognise the potential synergy in a direct relationship with the statistic-gathering function.

We are impressed with the nature and purpose of NESTA and with its already proven success in several fields. Elsewhere we advocate the need for many of its functions to be undertaken as part of the new Scottish cultural infrastructure. There is no doubt that aggregating several of these functions together, such as in the proposed Centre for Creativity (see Section 10) would be more effective, and that the Think Tank function would fit well in this model.

8.13 Recommendations

We recommend:

1) That community planning be adopted as the operational cornerstone for delivery of culture locally and nationally and that best practice be shared.

2) That the Scottish Executive establish and support a Commission, or similar body, to further consider cultural diversity in Scotland and how best to successfully develop, promote, and integrate activity.

3) Legislation to amend The Local Government In Scotland Act 2003 in order to make culture a specific key strategic theme within the Community Planning system.

4) That local authorities should take the lead in establishing and servicing Cultural Planning Partnerships which include the voluntary, private and public sectors.

5) That financial incentives to encourage cultural planning should be provided by the Scottish Executive or its appointed agency.

6) That local government be represented in any new model of cultural infrastructure.

7) That the research undertaken by Bonnar Keenlyside on the Commission's behalf should be shared widely.

8) Three-year funding for established voluntary cultural sector groups.

9) Investment in skills and capacity to maximise voluntary cultural sector groups' self-sufficiency.

10) That a national online resource providing information and advice, and the opportunity for the sector to develop a collective voice and to provide peripheral and remote communities with a reference point be developed.

11) The creation of a local cultural voluntary sector development officer position in each local authority.

12) Funding for the voluntary cultural sector to participate fully in cultural community planning.

13) That local authorities assume a development role, supporting and facilitating the voluntary sector.

14) That public sector agencies should review their funding procedures to ensure that they are straightforward and clear.

15) That the Scottish Executive's International Strategy should include liaison with, and encouragement of, The Scotland Funds project.

16) That the Scottish Executive promotes to the UK Government improved measures to encourage private sector donations and contributions to cultural causes.

17) That the Scottish Executive supports the Goodison proposals for tax breaks for donations to museums.

18) That the cultural infrastructure should develop a facility to encourage individual and corporate giving, and ensure appropriate recognition in return

19) Partnership with business should be integrated at all levels of cultural planning and government across Scotland.

20) That a national creative industries sectoral council should be created. Its functions would include: developing national standards for the sector, a more coherent approach to development of the sector, improving the public profile and status of the creative industries, assisting strategic coherence between existing initiatives and identifying areas of the sector requiring new initiatives.

21) That schools should be encouraged to make visual and design literacy prominent and present cultural and creative industries as viable career choices.

22) That the Scottish Executive should develop a digital media strategy. It should address connecting professional training with the needs of the industry, promoting and rewarding excellence, encouraging the use of home-grown talent, retention of skilled individuals; encouraging partnership work with private sector investors.

23) That the Scottish Executive should continue to lobby for commissioning by broadcasters to be located in Scotland.

24) That the Scottish Executive should explore options for using Scotland as a digital broadcasting test bed, with the support of the broadcasters and DCMS.

25) That Cultural Enterprise Offices should be developed further, and integrated with any new cultural infrastructure development.

26) Increased public sector investment in indigenous creative industries to deliver digitisation projects for the public sector, and digital programmes.

27) That the principles behind the CultureScotland.com proposal are examined further by the Scottish Executive.

28) That existing cultural research and development work should be co-ordinated and, where gaps exist, new work commissioned as appropriate.

29) That the Think Tank function should be a discrete element sponsored by the new cultural infrastructure model.

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