A PLANNED Scottish National Science Centre on the former site of the Glasgow Garden Festival has failed to win vital funding from the Millennium Commission.

A consortium headed by Glasgow Development Agency applied late last year for #37m of National Lottery money to help fund its ambitious proposals.

The commission's rejection, in the latest round of grants, is a severe blow to the project.

The #70m project, including a Millennium Tower and an Imax large-format cinema on the 47-acre site, would be part-funded by the Glasgow Development Agency, the private sector, and possibly European money, but was heavily dependent on a massive grant from the Millennium Commission.

Concern among commissioners about the project's ability to meet a possible #1m annual revenue deficit - the difference between running costs and income - is believed to have been the main reason for their rejection.

However, the GDA said yesterday there was strong support within the commission for the ``aims and ideals'' of the project, the largest on its Scottish portfolio, and insisted that it was not dead. The consortium is expected to re-apply for Millennium Commission funds when the next round of bids opens on July 1.

GDA officials are also due to meet Ms Jennifer Page, chief executive of the Millennium Commission within the next few days, at her invitation, to discuss the project and receive a detailed explanation of the decision.

They will then step up their efforts to generate further support from a number of public and private bodies to overcome the perceived deficit problem.

Mr Paul Smith, the GDA's director of development projects, said yesterday the agency believed the project offered a great opportunity to create a major science and technology-based exposition capable of attracting hundreds of thousands of people annually.

A Scottish Office spokeswoman said Ministers were disappointed to learn of the Millennium Commission's rejection of the application after the Scottish Office had approved the GDA's proposed financial contribution but added that ``this is entirely a matter for the Millennium Commission''.

It is understood that the Scottish Office will not involve itself in the running costs of the science centre and will not meet any revenue deficit incurred.

Also, GDA officials have privately been hopeful that Glasgow City Council would be able to contribute towards the running costs but it is believed that the council is unwilling to make an open-ended financial commitment because of its current financial constraints.

Meanwhile, Dr Graham Durant, the deputy director of Glasgow University's Hunterian Museum, warned yesterday that Scotland was slipping behind in science and technology.

Dr Durant, who has just returned from the first World Science Centre Congress, in Finland, said: ``The idea of a science centre is a very good thing. Every developed country and most undeveloped countries now are investing in them and they are not doing it for altruism but for sound economic reasons.

``I think we are in danger in Scotland of being a little bit complacent. We have a very good education system but we are falling behind in the fact that there is a huge gap between the general public and the scientific community and that is growing. Other countries seem to be able to find the money for science centres. Scotland can't.''