The fund is the first project of the government's £140m long-term modernisation programme for Scotland, announced on Thursday.

Over three years, the £3m will be used to support programmes which ensure children with multiple health problems have their care tailored to their needs.

Announcing the fund at the Children in Scotland annual conference, Scottish health minister Sam Galbraith said: "Services must be child-centred. My aim is that a child with multiple problems, such as cerebral palsy or cystic fibrosis, has their care designed around their needs and not around a doctor's speciality."

He said children, who make up 20% of the Scottish population, needed specific provision and services for them should not be seen as "add-ons" to adult services.

Health inequalities

All the projects backed by the fund will be tested against high quality standards, according to the Scottish Office.

They will include programmes that tackle health inequalities and seamless care across different specialisms.

According to the Scottish Poverty Information Unit, the number of children living in poverty in Scotland rose from 1.4m in 1979 (10% of the population) to 4.2m (31% of the population) by the end of the 1980s.

One in four children are currently reported to be living in families which are dependent on income support.

NHS centrepiece

The modernisation fund is the centrepiece of the Scottish Office's plans for the future of the NHS.

Sam Galbraith: 'services should be child-centred'

The money comes from the £1.8bn extra money announced for Scotland's health service in this summer's comprehensive spending review.

In 1999/2000, the fund will get £140m. Some £43m of this will be invested in projects such as new technology and pilots to promote new ways of training doctors and nurses.

The remaining £97m will be divided up among health boards to be used in areas such as community care and plans for reducing hospital waiting lists.

In a parliamentary question, Mr Galbraith also announced how the £1.8bn would be divided over the next three years.