The Bill, which provided for the establishment of the single body to replace the Scottish Arts Council and Scottish Screen, failed when voted down in the Scottish Parliament in June marking the first legislative defeat for the SNP Government.  Rather than waiting the mandatory six months to reintroduce the Bill to Parliament the Government is now incorporating the new body in the Public Services Reform Bill.  The new Bill will ensure Parliamentary scrutiny for Creative Scotland and enshrine the ‘arm’s length’ or artistic autonomy principle in legislation.       

Creative Scotland will be established initially as a company limited by guarantee allowing a new board of directors and chief executive to implement the final phase of transition.  The new board and chief executive are expected to be in place by April of next year with the organisation becoming a statutory body by February 2010.    

The news was announced by the First Minister’s statement to Parliament on the Government's programme.  Following the statement Culture Minister Linda Fabiani said: "I am 100 per cent committed to establishing Creative Scotland to bring benefit to our arts and cultural sector as soon as possible.  The Scottish Parliament has unanimously endorsed the principles of Creative Scotland, even though that bill did not pass in June. 

"That is why I will not compromise on either the timetable or the integrity and values of Creative Scotland.  That is why we will pursue the company route to provide quick, decisive progress while also securing Parliamentary involvement to produce a strong, statutory body endorsed by all. 

"This approach has been used before and ensures no further delay.  The new board and chief executive will build on the work achieved to date, finalise the organisation's remit and manage the transition. 

"I believe that Parliament must have its proper role and powers of scrutiny and we are ensuring this happens through the Public Services Reform Bill.  I also believe it is vital for the organisation to have its arms' length principle enshrined in legislation - this is rightly valued by the arts community.” 

Ted Brocklebank MSP, Conservative Shadow Minister for Culture however slammed the Government for abandoning the Creative Scotland Bill.  He said: “It is deeply disappointing that the Scottish Government has now abandoned its attempts to implement the Creative Scotland Bill with so many of the functions and powers of the new body still undetermined and not agreed by parliament.

“While it is true that some of the principles of Creative Scotland have been agreed, the key question as to whether Creative Scotland or Scottish Enterprise would be the final arbiter and deliverer of arts funding has still to be clarified. All who are concerned about the Arts in Scotland will be concerned that the decision about which body assumes this key responsibility has apparently been shelved until after the new board of directors and chief executive of Creative Scotland are in place. 

“The Minister claims that the new arrangements will be subject to parliamentary scrutiny through the Public Services Reform Bill.  But I understand that Bill will not be brought forward until next year – after the recruitment process for the new board and chief executive is already well under way.  How will candidates for these important roles be able to judge whether or not they wish to be considered when they don’t know what actual funding powers Creative Scotland will have?”