THE leading art award, the Turner Prize, has been criticised for choosing Stagecoach, whose Scottish founder and chairman Sir Brian Souter once campaigned against the repeal of anti-gay legislation, as a lead sponsor.

This year's prize short list includes artists Lawrence Abu Hamdan, Helen Cammock, Oscar Murillo and Tai Shani, who has been short listed in part for her exhibition at last year's Glasgow International festival.

Usually it is the art in the short list which provides instant controversy, not the sponsor.

However, today there has been criticism of the organisers for choosing Stagecoach as a sponsor: in 2000, Souter have £1m to a campaign to keep the Section 28 law in Scotland, the failed Keep the Clause campaign.

This year's Prize, which is being hosted by the Turner Contemporary in Margate, Kent, brought in Stagecoach South East as a sponsor.

Peter Tatchell, the gay rights activist, said he was surprised and disappointed by the decision.

The choice of sponsor dominated the press launch for the short listed artists.

Mr Tatchell told The Daily Telegraph: "Surely there must be other less tainted potential sponsors? The arts is an LGBT-friendly profession and should not be colluding with companies whose leaders support homophobic discrimination."

The questions over the sponsorship overshadowed the announcement of the short list for the prize, which gives £25,000 to the winner.

Last year's Turner Prize was won by Scottish artist Charlotte Prodger with her film, shot on an iPhone, about "queer identity" and her experience of coming out as gay in rural Scotland.

When the press conference to unveil this year's shortlist was asked if anyone had considered the choice of sponsorship a bad idea, "there was an awkward silence", according to reports.

Tate Britain director Alex Farquharson said that picking a sponsor "is very much a matter for the hosting venue".

Stagecoach South East is one of 18 locally managed companies within Stagecoach Group, which is based in Perth.

Victoria Pomery, director of Turner Contemporary, said that Stagecoach South East was involved in community projects in Margate, and added: "We are not in a major conurbation and we are constantly trying to bring new partnerships in to play so we thought Stagecoach could achieve that."

Pressed further, she added: "We have to take on board a whole range of issues when deciding our sponsorship.

"In this instance we decided that the role that the company plays in the area is very important."

Mr Farquharson later told the media: "I think that's probably enough on sponsors."

A statement from the Tate late said that local sponsors were vital to the exhibition being staged at venues outside London.

Stagecoach issued a statement, which said: "Stagecoach does not tolerate discrimination or harassment of any kind based on disability, gender, gender re-assignment, sexual orientation, religion, believe, age, nationality, race or ethnic origin.

"Our Stagecoach culture values transparency, diversity, and respect.

"We expect our employees to commit to doing the right thing, to respect other individuals at all times and treat them with dignity and thoughtfulness."

An exhibition of work by the four shortlisted artists will be held from 28 September to 12 January 2020 at Turner Contemporary in Margate.

The winner will be announced on 3 December.

Next year the prize will return to Tate Britain.