PROCEEDS from the national lottery may mean the new independent

Scottish Arts Council could have an extra #6m to spend.

Previously a sub-committee of the Arts Council of Great Britain, the

Scottish Arts Council becomes autonomous from April 1, funded by and

responsible to the Scottish Office.

Money from the lottery, which is expected to flow from January, will

be allocated on application to projects approved by a SAC committee. Mr

William Brown, the chairman, said: ''There will be some teething

troubles but it is a very exciting prospect. We are talking about an

unknown but probably very substantial amount of money, conservatively

estimated at about #6m. Overnight we may have 25% more money to

allocate.''

Most of the money is expected to go on capital expenditure, mainly

buildings for housing the arts. However some money will be spent on

maintaining buildings.

The SAC's annual grant of #23m remains the same for the coming year.

Mr Brown said he took consolation from the fact that the Arts Council of

England had suffered a 2% reduction of their grant.

Ms Seona Reid, director of the SEC, warned that the move to

single-tier authorities could have a damaging effect on the present high

level of support received from councils.

''At worst we may see a reduction in funding for the arts,'' she said.

''Particularly small authorities might have difficulty or be unwilling

to fund organisations that are operating on a regional or national

basis.''

In addition, arts departments and arts staff could be submerged into

larger council departments which might marginalise what the arts had to

offer.