Douglas Fraser's blog on an SNP U-turn

The future of Scotland's national sports agency was secured yesterday when the SNP government bowed to a major campaign to prevent it being scrapped.

Sports Minister Stewart Maxwell said sportscotland would move its headquarters to the new national indoor arena in the east end of Glasgow from its current base on the outskirts of Edinburgh.

Mapping out what he described as a "radical overhaul" for sport, Mr Maxwell said the agency would merge with the Scottish Institute of Sport (SIS) - currently responsible for the development of elite athletes.

The new set-up will remove "layers of bureaucracy" and help ensure Scottish success at the Commonwealth Games to be held in Glasgow in 2014, the minister said.

But opposition parties accused the SNP of "an embarrassing U-turn" from its manifesto commitment to abolish the agency.

There were stinging words too from SIS chairman, commentator Dougie Donnelly, who claimed ministers had not consulted with the sports organisation. "I have played no part in the discussions about the future role of the institute," he said.

Fears were also raised last night that the cost of the relocation - estimated at between £5m and £7m - may have to come from the sports budget. Mr Maxwell said the agency's area boards will be reduced from 12 to six, while four "delivery hubs" will be set up in Glasgow, Edinburgh, Stirling and Aberdeen to improve sports provision at a local level.

Frank McAveety, Labour Shadow Sports Minister, said the government had been forced to "climb down" amid parliamentary pressure.

Ross Finnie, LibDem health spokesman, said: "Ministers have been forced to perform an embarrassing U-turn."

But Mr Maxwell said there was "no question of a U-turn" and said sportscotland's name had only been retained because changing it would cost too much money.

Under the new arrangements, sportscotland is expected to employ 80-100 staff in Glasgow, 30-35 in Edinburgh, 55 in Stirling and 5-10 in Aberdeen.

Currently, 145 staff are employed at sportscotland's Edinburgh HQ, and 55 at the SIS in Stirling.

The changes are expected to be in place by April 2009 and Mr Maxwell insisted there would be no compulsory redundancies.

Julia Bracewell, sportscotland chairwoman, welcomed the news and Graham Watson, SIS Foundation executive director, said a period of "great opportunity" lay ahead.