So the OP is incorrect then about total withdrawal???
In my humble opinion I don't understand why writers of songs should expect funding any more than writers of books or magazine articles.
I caught a glimpse a few nights back of acrobatic dancers rehearsing for a highly popular TV programme. They were rehearsing at the EFDSS headquarters which seems to be used pretty often. I guess that the earnings from this type of excercise brings in a few quid. What proportion of that goes to promoting folk song I wonder?
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sj