SCOTTISH Opera will have to make significant changes to help meet a deficit of between (pounds) 2.5m and (pounds) 3m by the end of this financial year, its chief executive admitted yesterday.

However, Christopher Barron said he was determined that the deficit would not grow into a crisis that would

threaten the existence of the opera, and he is not looking for a multi-million pound ''bail out'', such as that made by the Scottish Executive in 1999.

In an interview with The Herald, Mr Barron said changes would have to occur in the coming months, because the company is set up to make more operas than it can currently afford.

On the future of the company, he said: ''There will have to be change, but I cannot say what that is. The overheads that we have today was designed for a company producing nine or 10 operas a year 10 years ago and, if there's a cap on the cash available, which appears to be the case, we have to look at the whole thing.

''Whatever our ambitions previously were, we have to take a major review of them.''

Scottish Opera is expecting to learn on Tuesday that its grant from the Scottish Arts Council will be (pounds) 7.4m, the same as the last three years.

Mr Barron declined to say whether the company would become a part-time or ''seasonal'' operation, but revealed that Frank McAveety, the culture minister, had assured him the executive still wants Scottish Opera to continue providing opera for Scotland.

''There is a very large difference between now and 1999, in that we are in control, we know exactly where we are, we know where are accounts are, we are well managed. The determination of this whole administration is to work within the funds available and service the audience at the other end,'' he said.