EXCLUSIVE

THE Scottish Secretary is being pressed to give Holyrood full oversight of all National Lottery awards north of the Border, as appeared to be the original intention of the White Paper last summer.

Section 2.7 of the White Paper spoke of the Scottish Executive having ''powers to issue policy and financial directions to National Lottery distributors in Scotland,'' and this was taken to refer to all awards handed out in Scotland. But when the Bill was published it was silent on the issue, making ''Betting, gaming and lotteries'' reserved areas, with no reference to the National Lottery at all.

Business consultant Margaret Cuthbert looked into the extent of the Scottish Parliament's oversight of the disbursal of awards and discovered this was to be much narrower than seemed to be implied in the White Paper. According to a draft of the Transfer of Functions (Scottish Ministers) Order, only arts and sports bodies ''whose functions exclusively or mainly relate to Scotland'' will be accountable to Holyrood.

So, while the new Parliament will be able to ''issue policy and financial directions'' to the Scottish Arts Council and the Scottish Sports Council, it will have no power to influence the other major distributors, the National Lottery Fund, the National Lottery Charities Board, the Millennium Commission, or the New Opportunities Fund.

Mrs Cuthbert and her husband Jim Cuthbert, former chief statistician at the Scottish Office, contacted The Herald to protest. ''For approximately two-thirds of the Lottery cash distributed in Scotland, the Scottish Parliament will have no power to influence priorities between projects, or to call the distributors to account for their decisions,'' they said.

''Nor will the Scottish Parliament have any power at all to shift Lottery funds between the six Good Causes, not even between the Scottish Arts Council and the Scottish Sports Council.''

SNP policy vice convener Alex Neil said last night: ''Decisions on Scottish priorities for funding will take place outside Scotland.

''This is not good enough. It is inconsistent with the spirit of devolution and indeed the letter of the White Paper.

''Donald Dewar must explain why so much power is to be retained by London. Scotland's priorities can best be set by the Scottish Parliament .''

The Scottish Office said the relationship between Holyrood and the London-based Lottery bodies was not yet decided: ''The White Paper made clear that the Lottery was a reserved matter. However, the Government proposals include an important element of executive devolution.

''The executive devolution order which has been considered by MPs in the House already sets out arrangements for Scottish Ministers to give direction to the Scottish Arts Council and Scottish Sports Council on the spending of lottery funds.''

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