Labour wanted to change how major arts groups are funded

Culture Minister Alun Pugh had aimed to take responsibility for funding Wales' six largest arts organisations away from the Arts Council of Wales.

But the opposition parties and two independent AMs united to defeat the government by 29 votes to 28.

They passed an amendment instructing the government to hold a public review into the funding of the arts groups.

The Arts Council of Wales (ACW) is currently responsible for funding and developing the arts in Wales.

'Arm's length'

In 2004, the assembly government announced it would take over many of the duties of a number of Wales' unelected culture, sport and countryside bodies - known as quangos - including ACW.

As part of the changes, the assembly government plans to take over from the arts council the direct funding of six organisations - Welsh National Opera, BBC National Orchestra of Wales, Diversions dance group, Clwyd Theatr Cymru, Academy and the National Theatre of Wales.

But opposition parties claimed this would breach the principle of "arms-length" funding of the arts - separating the politicians who hold the purse strings from the artists who receive the money - and could lead to political interference.

We are serious about reforming our public services Culture Minister Alun Pugh

Mr Pugh told the assembly debate on Wednesday that the opposition was attempting to block much-needed reform.

He said: "We are serious about reforming our public services, pursuing progressive policies to deliver change and improvement for the people we are privileged to represent.

"The opposition, in contrast, can only unite to block progress, to maintain the status quo and to delay much-needed reform."

But Conservative culture spokeswoman, Lisa Francis, asked: "What have the arts council done wrong? We all want to know.

"How are they failing to address these perceived inequalities in access and participation (in the arts)?"

Arts review

Following the debate, independent AMs Peter Law and John Marek joined the three opposition parties to defeat Labour, voting to initiate a public review of the arts council.

The assembly's culture committee will decide the terms of reference of the review, which must be concluded by the end of the year.

After the vote, Mr Pugh said the assembly government's plans had intended to improve access to the arts among some of Wales poorest communities.

He said: "As a minority government we are in the business of losing votes occasionally.

"We have a responsibility to fund our national arts organisations...but in exchange for that guarantee of public funding we want to see more work done on access."

But the opposition parties said the assembly government's proposals for arts funding needed to be re-examined.

The minister has destabilised the arts in Wales, slashed staff morale and rattled the committed volunteers who give so much to the arts in Wales Lib Dem culture spokeswoman Eleanor Burnham

Plaid Cymru's assembly leader, Ieuan Wyn Jones, said: "The culture minister must now engage with all parties to seek a sensible, meaningful way forward.

"Rhodri Morgan's government is increasingly out of step, both in the cultural and political arenas."

Welsh Conservative culture spokeswoman, Lisa Francis, added: "Labour's plans for the arts in Wales are now in total disarray.

"We have long warned about the politicisation of the arts in Wales and this vote is an expression of those concerns."

Welsh Liberal Democrat culture spokesperson Eleanor Burnham accused Mr Pugh of causing unnecessary disruption in the arts community.

She added: "The minister has destabilised the arts in Wales, slashed staff morale and rattled the committed volunteers who give so much to the arts in Wales.

"No wonder the arts community is up in arms."

In a statement, the Arts Council of Wales said it welcomed the decision to hold a review of its role.

The statement read: "We hope that both the process and its outcome will... reconcile the needs of democratic accountability and the value of the arm's length principle in a way that will have the support of the arts sector and a wider public."