The Scottish Government has been accused of incompetence over its handling of the merger of Scotland's main arts bodies.

The Scottish Government has been accused of incompetence over its handling of the merger of Scotland's main arts bodies.

Culture minister Linda Fabiani came under pressure amid claims that set-up costs for Creative Scotland were spiralling, and that MSPs' concerns were being ignored.

The SNP's flagship Creative Scotland Bill - intended to merge the Scottish Arts Council and Scottish Screen - was defeated after some MSPs said they were being misled over financial implications in June last year.

The government now intends to set up the cultural body through the forthcoming Public Services Reform Bill.

Liberal Democrat MSP Iain Smith criticised the way process is being handled.

He said: "The uncertainty and confusion over the future of Creative Scotland is entirely the result of the incompetence of this government.

"By going behind Parliament's back and setting up Creative Scotland without addressing serious concerns about its funding, ministers have only added to the confusion surrounding this Bill."

The exchange was sparked by a question over funding, raised in Parliament by Labour MSP Rhona Brankin.

She asked if reports of a £7 million increase in set-up costs were true, and called for assurances that money will not be cut to artists.

Ms Fabiani said: "We are right now working on the transition costs and these will of course be presented to Parliament at the appropriate time, which is as it should be."

Tory MSP Ted Brocklebank asked the minister to clarify whether Scottish Enterprise or Creative Scotland will take the lead in funding artists.

He said: "Given the difficulties the minister experienced in explaining to the Chamber during the passage of the original Creative Scotland Bill, which agency would actually be responsible for dispersing funding for the arts in Scotland?"

Ms Fabiani replied: "What is important to this government and to those who receive funding is that there is a transparent system of dispersing such funds.

"We're currently working with partners to create the best possible system for funding to be given to creators in our country."

Earlier this week, it emerged that 440 artists and writers backed a petition urging MSPs to turn down the proposed merger.

They signatories believe "huge costs" attached to setting up the agency will lead to cuts in grants.

A limited company, also called Creative Scotland, has been set up to cover the transition process.

MSPs voted in principle for Creative Scotland before the Bill fell in the surprise defeat last year.