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You have also talked about the review of Creative Scotland. It is very important that we have clarity as to where the organisation is going and what is going to happen with it. You touched on the number of applications that are made to the organisation, for which it is not able to provide support. In its own way, Creative Scotland is not fulfilling its obligations to the sector, because it cannot: it has to decide how it rations the money and its resources. Is it time for there to be a change in the creative sector? The review may have implications for Creative Scotland. Is there anything within that that you want to explain to us? Some people have said that the review could be the demise of Creative Scotland.

I appreciate that. We all want to see the sector thrive and survive. As I say, it has been extremely resilient, having been supported by organisations, including the Scottish Government, to keep it in that place. However, if we do not get this right—unless the resources, the equation and the challenges change—it will mean the decline of the sector over the months and years ahead. If we do not change, it will not thrive.

Good morning, cabinet secretary; it is good to see you. Given the concerns that we have heard from the sector over the past few weeks, when we have been taking evidence through the pre-budget process, and the opening comments that you have just made, it is clear that there is a need to ensure that the sector remains constant and that it also has the confidence that comes from having long-term clarity.

The need for financial stability has been raised by every organisation that we have heard from. Today, you have given some clarity about how you see the potential for that, but there is an “if” in relation to that potential, and that is before organisations have to deal with their staffing costs, the costs of producing work and even the cost of working towards net zero, all of which they must include in their equations about how they fund themselves. It is difficult for those organisations to predict where they will be in the future, and they need the Government, Creative Scotland and others to give them confidence in that regard.

Everyone tells us that they are doing more with less, but the cultural package that we provide is still strong and buoyant in the communities that we represent. Nationally, we have an organisational structure, but it is extremely fragile, and we do not know what will happen in the future.

How do you square that circle to ensure that those individuals and organisations can thrive and survive, which we all want them to do? They are doing all that they can within their own organisations, boards and management structures to do that, but it is extremely difficult for them to see what the future holds without having that stability. I note that, as I commented earlier, you said that it is an “if” situation.

Absolutely.

Good morning. I will touch on the proposed review of Creative Scotland. As you have said when you have visited us in the past—and even today—you are having to manage a funding crisis in the sector. Others have given evidence, this morning and at other times, giving us an indication of where we are and what is taking place. What is your opinion of what that review will involve? Will it see progress in your organisation and the sector, or might it change the way in which your organisation works and progresses? Do you have a flavour of what the Government plans to look at and decide on for the future of Creative Scotland?

If the Scottish Government does not unlock enough of the £100 million to ensure that organisations and individuals who apply to you receive funding, you will turn down more and more applications and you will close down more organisations or be unable to support groups and activities across the piece. Within the review, Creative Scotland will become the organisation that is not helping the cultural sector to expand and progress. Could that be the decline of Creative Scotland?

One word that has been used many times in relation to the sector is “confidence”. Today, I asked some of the previous witnesses whether they had confidence in Creative Scotland. It appears that they have, to a level, in the way that you manage your organisation and its processes. However, the issue is about the future and where we go with that.

You are very alive to the funding packages that you have. Extra funding has been given to youth music and other initiatives in some of the packages that have come forward for review. However, the sector itself is still in crisis and, although prediction is impossible, some elements in the sector still believe that there needs to be a root-and-branch change if organisations are to continue to thrive and survive. What are your feelings on that?

I thank the witnesses for their comments so far. You have touched on risk and reward. Currently, it appears to be the case that there is much more risk than there is reward for the sector.

You have also touched on the flexibility that you need in order to ensure that you can bring artists or individuals into organisations. My take on that is that it is very difficult for you to do that at the moment, because you cannot reward those individuals with pay. You are asking your current staff to do much more with less, which means that they are under more strain. Your attempts to attract new talent and the individuals who will take on your roles in the future are being jeopardised.

How confident are you that the Scottish Government is getting the message right—that funding is coming, but it is coming in a tranche or two, and at different times in different years? How confident are you that Creative Scotland is the organisation that you can put your trust behind to ensure that you can thrive and survive for the future?

As I said, if there was certainty, co-operation and confidence, the situation could change. The potential that would be unlocked, if we get it right, would be enormous, as you have all articulated. The knock-on effect of what you can create from being given a small amount of money can be enormous within a community or a sector, and it can lead to massive things in the future.

I can see that Caroline Sewell wants to come in. I am sorry, Caroline.

Thank you, convener.

You have all talked about how funding unlocks the potential in your organisations. That funding is crucial to the success, sustainability and survival of your sector. The £100 million that we know is coming down the line is vital to make sure that the situation is sustainable for each and every one of you. Probably the biggest issues for your organisations are the staffing costs that you have to incur and attracting people into your organisations. If you are managing decline—most of you have indicated that you seem to be in that way of coping at present—how do you attract the next generation and the next leaders of your organisations to build on the success that you have all achieved so far, with the limited resources and the budgetary constraints that you have had to contend with, not just this year but in years past?

As you have said, the future is challenging. However, it will be the people you invest in who make a success of culture in future. If you are not able to backfill jobs, your current staff have to do more, and you are not able to attract people with potential, what funding and support could the Government give you? Are there areas in which you should invest in staff and personnel? I cannot see any way through the dilemmas that you face unless there is a commitment to give you resource that can bring in people, push your organisations and inspire them for the future. If you are not given that opportunity, where do you go? What can you cut or close in order to maintain some part of your cultural activity? It would be good to get a flavour of your views on what I see as one of the main obstacles here—or, alternatively, one of the main stepping stones if you are all to thrive and survive. As Susan Deighan said, if you cannot attract people to lead your organisations into the future, they will not survive.