Here are Creative Scotland and Scottish Government emails acquired by The Herald through the Freedom of Information rules about the case of Scottish Youth Theatre, which was denied long term funding from the arts body, but subsequently given money by the government in a £1m deal for youth arts.

November 8 2014
From Aileen McKechnie to Creative Scotland
Subject: Fw: Immediate - First Minister meeting tomorrow with Scottish Youth Theatre

Janet [Archer, CEO of Creative Scotland] et al
Apologies for disturbing your weekend.
You'll be aware that the FM was disappointed at the result of the recent funding round for SYT. He is meeting the CEO tomorrow to discuss further. There has already been separate engagement over recent days between the CEO and other parliamentarians which has been relayed to FM and which has caused him concern.
I am keen to offer a brief note in advance of that meeting which provides some assurance for the future of SYT but would need your help to so do. If we are unable to provide such assurances, I'd be concerned about the outcome of such a meeting.
I've listed some questions - same list below and attached - for which it would be hugely helpful to have responses today. This will allow me to clear an approach with Ms Hyslop before going to FM.
Any further advice you can offer would of course be hugely helpful.
Many thanks in advance.
Aileen McKechnie
Director of Culture and Heritage, Scottish Government

November 13 2014
From Iain Munro to Aileen McKechnie. Copied to Janet Archer and Sandy Crombie
Subject: SYT

Aileen, further to our conversation this morning, I have had discussions with Janet, and Janet with Sandy.
We strongly recommend the proposed £1million pound package is framed against delivery of Time to Shine to strengthen the National Youth Arts Performing Companies (NYPACs), and in turn the wider Youth Arts sector, in order to build momentum towards the Year of Young People 2018.
The outcomes of this approach would be to:
- consolidate the NYAPC's individual and collective leadership within Time to Shine
- enable new ways of working to emerge, led by the NYPACs
- extend the breadth, depth and quality of their engagement across Scotland
- enable cross-organisational youth involvement within Time to Shine, including relationships with the youth arts hubs
Creative Scotland remains committed to continuing to work with SYT to seek positive ways to address the feedback from their Regular Funding application and to enable SYT to play a full and effective role as a national, strategic organisation within the youth arts and wider cultural sector.  The above approach to align the new funding to Time to Shine would still enable the development work with SYT to take place, whilst delivering wider benefits for youth arts.
This approach importantly also protects the integrity of the Regular Funding process and those that submitted strong and exceptional applications who have been awarded 3 year funding.
If the £1million pound package is available only to SYT the risks are significant:
- it will be perceived as inequitable and will lead to substantial unrest across the cultural sector, from both successful and unsuccessful applicants (there is already evidence of this on social media today following the SYT statement yesterday)
- it undermines the entire Regular Funding process and Creative Scotland's status as an arms length NDPB
- it undermines the positive programme of change spearheaded by Janet Archer that has been widely welcomed by partners and the cultural sector
- creates significant political challenges for the incoming Chair
- creates significant ramifications for political leadership
In either scenario, we would expect the Scottish Government to be clear in our annual letters of guidance regarding the purpose and expected outcomes of the additional funding.
If I can be of any further help, please do let me know.
All best
Iain

November 16 2014

From Ruth Wishart (Board member of Creative Scotland) to the  Board of Creative Scotland


Colleagues,
Even though I went into bat on behalf of SYT at the board meeting ratifying the SMT's decisions, I assumed that the collective decision finally taken would be just that. Final.  Albeit with the promise of discussions to try and bring the company into the broader Youth Arts strategy in a more collaborative way.
I watched the FM's speech on iPayer last night (sad anorak that I am) and clearly, on the basis of his personal experience, he chose to give NYT favoured status and therefore second guess the CS process.
As a result I  find myself in the paradoxical position of being relieved that a solution has been found for NYT which does not impinge on our other budgetary decisions, while being simultaneously uneasy that there has been direct political intervention of a kind explicitly excluded by our terms of reference.
This clearly has implications for our credibility as a non governmental public body.
There is too the tricky question of precedent, and how other unsuccessful applicants will choose to react.
While it will not affect the outcome of this particular case,  I think we should ask for a specific item to be included in the December agenda.
Best
Ruth

November 14 2014
From Barclay Price (Board Member) to Sandy Crombie (Chairman) and Janet Archer

Janet and sandy While the £1 million is is of course good news as all extra money for the arts is, I still think this undermines the decision of the Executive and Board and I will need to ponder my reaction. It is quite clear that this is in response to the SYT decision - and will be widely seen to be so by the wider world - and thus if I were an unsuccessful applicant to the three year funding round I would wonder whether a campaign to the Government might bring them money as well.
I can well understand Janet that you were in a difficult position re: this and clearly unable to refuse £1 million! If I thought that any decision that CS makes in the future that the Government finds problematic - but which has been arrived at fairly and with due consideration - would simply result in them providing more cash then that would be an interesting situation.
Clearly I understand the sensitivities so will not rush to a final view - perhaps on Wednesday when I'm in ... I could find out more about the Government's offer and discuss more widely.
Barclay

November 14 2014
From Sandy Crombie to Barclay Price

I think Janet and Iain have done the best job possible to restructure the SG / private money initiative so that we retain discretion over how it is used within the umbrella of time to shine. Crucially, we set the terms for any recipient. Clearly we all need to ponder whether this is undermining, but we should congratulate the team for steering this a long way from direct SG funding of SYT.
I hope you can stick with it!
Best wishes
Sandy