An arts association has been given its final lifeline by a local authority.

Yeovil Community Arts Association, which avoided bankruptcy in 2001-01 by changing a rent arrangement, will be given £15,000 by South Somerset District Council.

But the organisation was told in no uncertain terms it must get its house in order and won't be able to rely on council grants again.

There is no doubt that YCAA is a much-appreciated organisation in the community. It provides three exhibition spaces and one workshop space for visual arts and crafts.

Tutored classes on a variety of subjects are also held on a regular basis. According to a report circulated at the meeting, attendance figures are very good - with almost 13,000 visits having been made so far this year.

No less than 12 exhibitions have already been planned for the main space next year, but funds have been an ongoing problem for some time.

At last week's meeting of SSDC's Area South Committee, it was reported that the not-for-profit charity has been losing approximately £4,000 a year for some time.

A YCAA representative said ways of cutting losses had been identified, one being a reduction of touring exhibitions.

In addition, a report by council officers Marcus Cole and Hannah Aitken said: "There is a new director in post with fundraising a priority. There is currently an identified additional fundraising target of £7,326 for 2002-03 to achieve positive cash flow.

"The grant requested this year was £20,632, but it had to be scaled back to £15,000 because of extreme shortage of revenue funding available from the Area South budget.

"This will compound financial problems and consideration is being given to finding alternative sources of funding. One possibility is to engage the services of the arts centre, it volunteers and patrons in some of the arts-related work on Yeovil Eastern Regen-eration - from which they could derive an appropriate fee."

The officers recommended the £15,000 grant be given on condition a comprehensive business plan is developed by the association.

Councillors were not enthusiastic, with Liz Glaisher saying: "We can't go on like this, we have the same discussion every year."

Councillor Tony Lock said the organisation must get its house in order, while committee chairman Tony Fife added: "We can't keep throwing tax payers' money into a bottomless pit."

Councillor David Greene agreed but felt the association should be given another chance if measures were put in place, especially since the arts centre was the only such facility in the area.

This seemed to soften Councillor Glaisher, who said she would support the application providing a business plan was drawn up and a report submitted in six months clearly outlining the financial situation.