There is no doubt that a battle has been won in progressing the funding, but perhaps the war continues in relation to culture and the process of what we want to achieve to ensure that we maintain that status and level of participation. As you indicate, many of the 285 applicants who are at the next stage of looking at where funding comes from will breathe a sigh of relief.

Over the past few months, we have heard from individuals and organisations who are looking forward to seeing what you can achieve on their behalf, so that they can be supported by your organisation, because they—and we—want the sector to continue to survive, thrive and progress.

The ability to be pioneering has been inspirational for the sector, and we have talked in the past about Scotland punching above its weight in the area. However, in reality, we are on this journey and we have come so far. What are your strategies? What is Creative Scotland’s next step towards what it wants to achieve? There is a potential review of what the organisation will need to manage for the future, and you have some financial security in the short to medium term, but the long term must be a major issue for you.

I thank the witnesses for their attendance and their comments so far. You have all touched on the challenges for your sector, and you know the opportunities that you are trying to develop. There are probably three main issues that you have to contend with day to day: ensuring that people support you by attending your events and venues; managing the fabric of your buildings, which are very difficult to maintain and sustain at present; and managing staff costs and pay awards to ensure that you retain your staff. It is extremely difficult for you to progress without one or all of those areas having to be reduced in some way, shape or form in order to balance your books.

The sector continues to show real prospects, but it is a case of taking one step forward and then two steps back. I commend you all for what your organisations are trying to do to weather the storm and manage the decline in some locations, but there are real difficulties and you are now at the cliff edge, as we have talked about in reports in the past. The extra money is beneficial, but it will not solve the problem and save some of the institutions and organisations that you support and some of the individuals with whom you work.

I have a question for each of you. In the past, the Parliament, the Government and the committee have attempted to force agendas, because we must ensure that the sector is given the opportunities and status that it needs, but we are still far behind compared with other parts of the world and other locations that benefit through tax regimes and other ways of ensuring that funding is parallel to ambitions. We have ambition in Scotland, but, at times, we are not able to make things happen. How can we change that?

Within that envelope, you still have to manage the maintenance and the fabric of the buildings; you still have to meet the costs of the pay awards, which is an issue that I have asked about previously; and then you have to ensure that people attend and support your cultural activities, that they continue to bring in revenue and finances, and that you have the support mechanisms in place to manage all of that. However, when you have to touch on all of those things, huge clouds of potential difficulty can arise with regard to what can be achieved financially in the short to medium term.

It is very difficult for the arts, culture and creative sector to continue to thrive when councils across Scotland are proposing devastating cuts that will decimate the funding of music services and affect the sector’s future. What action is the Scottish Government taking to negate these ill-conceived proposals, which will possibly see the removal, after 60 years, of instrumental and vocal teaching from our communities?

In June, the cross-party group on heart and circulatory diseases published a report on its inquiry into the heart disease action plan. Clinicians reported that encouraging work is going on across Scotland to innovate and improve services, but the ability to implement that across all health boards is suffering due to a lack of funding. Will the cabinet secretary commit to increasing the focus on investment and the contribution to dealing with conditions across Scotland, because heart disease is Scotland’s single biggest killer?

To ask the Scottish Government what action it is taking in light of statistics reportedly showing that a record number of people have been waiting over a year for heart disease treatment. (S6O-04129)

There seems to be a mixed view about the regulator, when it comes to trust. You have given a view this morning, and we have heard evidence from others. How do you deal with the impact, and how do you deal with working relationships for yourselves and for associations and individuals? How do you build and maintain trust if there is an issue? We certainly believe that there is an issue.

My second question was about smaller RSLs being nudged to become larger associations. There seems to be the perception of a merger culture.

Thank you.

My questions relate to the Glasgow and West of Scotland Forum of Housing Associations and Reidvale Housing Association, which you have touched on. Some evidence that we have received has been critical of the attitude towards community-based housing associations and the perceived merger culture. The forum gave the example of Reidvale Housing Association, which it said did not inform or consult tenants about an options appraisal process. It said that the regulator “simply let go” that breach of a regulatory standard. That was the perception.

First, do you agree that, in the case of Reidvale Housing Association, you let a regulatory standard on the options appraisal process be breached? Secondly, how do you respond to concerns that there is a regulatory culture that nudges smaller RSLs towards transferring to larger associations?