THE statement to Parliament yesterday by Mr Sam Galbraith may represent his last hurrah as the Minister responsible for a vexed chapter in arts funding, despite the peculiar translation of the culture and sport portfolio from education to environment in the recent Government reshuffle.

The substantial hike in funding for the Scottish Arts Council leaves the quango to implement the new national arts strategy as it directly affects arts organisations.

Last night, however, there was already disquiet that the award was not enough to fulfil the needs of the remit.

Significantly, Mr Galbraith's statement was silent on the established national companies. While the controversial issue of the establishment of a Scottish National Theatre is addressed, the nation's orchestras and particularly its over-spending opera company were not mentioned.

The Herald has already been given a clear understanding there will be no further direct assistance from the Scottish Executive beyond the resources of the arts council on the model of the controversial #2.1m bail out of Scottish Opera/Ballet a year ago.

Yesterday's announcement does not give the arts council the resources to meet the company's declared shortfall of #1m while it is also expected to meet the social inclusion agenda of the new strategy.

Understandably, the Scottish Arts Council was officially supportive of the ministerial statement but a senior source argued that the quango had not been given the resources it required by comparison with those recently granted to the Arts Council of England.

None the less, the announcement will also be seen as an endorsement of the position of the Scottish Arts Council, which opposition members have claimed is an inappropriate body for post-devolution Scotland.

It signals an end to appeals directly to the Scottish Executive, over the head of the arts council, by organisations like Scottish Opera and it represents a significant political victory for its director Tessa Jackson, who has clearly successfully argued that her organisation maintains its position as the primary disburser of arts funding.