A MUSIC organisation which helped Franz Ferdinand and Snow Patrol find fame has been wound down amid uncertainty over its financial future.

One official from NewMusic in Scotland (Nemis) has criticised the government and the Scottish Arts Council (SAC) for failing to give contemporary music the level of support of other art forms.

However, the SAC said Nemis had failed to provide audited accounts and a business plan, and pointed out that a number of its board members had resigned recently. It has already had GBP100,000 of public money.

Nemis, which has an office in Jamaica Street, Glasgow, offers advice to musicians and bands on a one-to-one basis and through organised seminars, as well as helping with marketing and promotion. It also has had a pivotal role in the annual Musicworks convention in Glasgow.

Two years ago, it produced a promotional CD of Scottishbased bands which went to some of Europe's most influential industry executives at the MTVEurope Music Awards in Edinburgh, including offerings from the-then little known bands Franz Ferdinand and Snow Patrol.

But now the four-year-old development agency has said it has run out of money and it will effectively have to halt operations. Only its website, offering contacts and diary dates, will remain.

The agency has had arts council grants worth GBP70,000, and GBP30,000 in start-up help from Scottish Enterprise.

Alec Downie, new music development officer forNemis, said the body could not continue its work and was scathing of "elitism" in arts funding.

"In my view, the arts council is nepotistic and bureaucratic and, most of all, is out of touch with what is happening now. I would argue that the likes of The Delgados, Chemikal Underground, and Belle and Sebastian are culturally significant, but they (the arts council)would not.

"That shows the mentality of the people that control the arts here."

Scott Twynholm, of the Glasgow electro-pop band Hoboken said help from Nemis had proved vital. The band released an album last year and will release a single next month.

"Through Nemis, we appeared on two CDs which were distributed at the majormusic conferences throughout the world, " Mr Twynholm said.

"There is no way we would be in the position of recording our second album, or our new single, were it not for the help and advice Nemis has provided."

Tony McGill, manager of the Fratellis, who recently signed to Island records, said: "I have got the MD of Island to send a strongly worded e-mail to the SAC because the work Nemis does is crucial.

"When you are starting out as a band, you don't knowwhat to do, you don't have the contacts or the knowhow and Nemis supply all that I am shocked this is happening."

An SAC spokeswoman said there was no doubt of "absolute commitment" by Nemis to its work, but the council was "a steward of public funds and needs to be confident that public funding is being spent to best effect in an organisation that can clearly articulate where it is going".

She said it was not accurate to say that Nemis's funds had been cut, as it was not given revenue grants, but one-off assistance. Neither, she said, had it officially applied for new funds of any kind, nor did it raise any of its own income.

The SAC statement added:

"Essentially . . . it is an issue of confidence: information requested has not been supplied - fundamental information such as audited accounts and a clear business plan.

"We are primarily concerned with the governance and structure of Nemis. It is unclear whether Nemis is a membership organisation solely or is a limited company purporting to represent the contemporary music sector in Scotland."

SUCCESS STORIES

NEMIS promotional CD given out at MTV Europe Awards in November 2003 included

The Darts of Pleasure Franz Ferdinand

Spitting Games Snow Patrol

I Love You Cause I Have To Dogs Die in Hot Cars

Johnny Cash Sons & Daughters

With Aplomb Biffy Clyro

Maybe It's Time The Grim Northern Social

Black Path Aereogramme

Destroy Rock & Roll Mylo