ARTS Council funding and its forward-thinking arts debate are both firmly in the spotlight at the moment.

Particularly the financial front, since Tessa Jowells mentioned an Olympic overspend and that some of the extra cash to cover it would be diverted from Arts Council England funds.

In fact, the secretary of state for culture, media and sport admitted that the additional millions would be met by London council tax payers and Lottery funds and ACE chief executive Peter Hewitt - among others - has expressed his deep disappointment at the government's raid on his organisation's creative coffers.

Cuts in Lottery funding to pay for the Olympics could also undermine sporting institutions as well as those in the arts and heritage sectors.

So, would a reduction in the money available for the arts have a detrimental affect on Arts Council England, North West, which covers Cumbria, and other areas on our doorstep, I ask its executive director Michael Eakin?

Michael tells me that it's a statement of fact that £112.5 million will be taken from arts funding between 2009/2012.

"We have two areas of money, a Lottery budget and treasury funding," explains Michael.

"Treasury funding is for core funding. That's not affected.

"It's the Lottery budget that will be, which funds project specific grants."

(The £30,000 allotted to the Brewery Arts Centre's Women's Arts International Festival being from that pot).

"For this year (2007/2008) we are looking at a 35 per cent reduction in Grants for the Arts.

"The reduction is partly due to the decline in Lottery sales as well as taking in consideration the Olympic top slice."

Mindful of the cash squeeze, nationally ACE still aims to invest something in the region of £1.1 billion of public money between 2006 and 2008, from government and the National Lottery, in supporting the arts.

All this comes as ACE is in the middle of a consultation period for its first ever, countrywide debate about the value of the arts and the role that the arts play in people's lives.

Now everyone has the opportunity to have their say by responding to five key questions, which have been drawn up following the initial research: What do you value about the arts?

What principles should guide public funding of the arts today?

What are the responsibilities of a publicly funded arts organisation?

When should an artist receive public money?

Should members of the public be involved in arts funding decisions?

The views from the public consultation along with the in-depth research will enable the Arts Council to become more in tune with the public by gaining a greater understanding of what people expect from public investment in the arts.

Hmm!

Michael points out that two thirds of people take part in some form of creative activity, be it playing a musical instrument or painting: "We're not just looking for the views of people who are already involved in the arts - we are as interested to hear the views of those who don't."

The consultation period runs until May 11 and people can log on to www.artsdebate.co.uk to take part.

A consultation response form can be downloaded from the website, which explains each of the questions in more detail and provides all the information needed to submit a response.

Consultation documents can also be ordered by telephone on 0845-300-6200.

Findings from the research along with the views from the public consultation will be analysed and published later in the year along with the Arts Council's plans for the future.