Scotland's diverse arts include Scottish Opera

During its bi-monthly meeting in Edinburgh the council, which receives an annual grant from the executive, urged ministers to provide an extra �4m in funding for drama next year.

It also distributed nearly �3m to theatres in Aberdeen, Dundee and Nairn.

Mr Boyle made his comments as the council published its report on the proposed theatre.

The report said the council needed an extra �4m next year to develop it and carry through the executive's national cultural strategy.

The plea for extra cash came in response to a consultation on the executive�s draft budget for 2002/03, which offered no increase in funding for the arts.

New productions

Mr Boyle said the theatre would draw on the current infrastructure, rejecting calls by some in the arts community for a new theatre building with its own actors.

Its "main objective" would be to commission companies, directors and performers to put on productions at home and abroad, as well as encouraging a strong network of regional theatres.

Scottish Arts Council director Tessa Jackson added that were the funding to be granted, the arts council would use �1.2m for the national theatre and �1m to develop existing organisations.

A further �1m would be divided between developing new technology resources and boosting opportunities for Scots to work abroad.

Resources

The remaining cash would deliver the national cultural strategy commitments on education while offering increased support for the creative industries.

A spokeswoman for the executive said: "In the last spending review the arts council was given an additional �15.2m over the next three years.

"This included �2m for the possible setting up of a national theatre.

"It is for the Scottish Arts Council to decide how best to use these resources."