Aren't all atists being priced out? Why special discounts for locals?

Because it would go a long way to re-energising waning enthusiasm among the population of the city. Also it would help the festival become a showcase for the incredible talent we have here. I'm the only local performer at my venue this year (pleasance dome). If we don't care about the identity of the festival, then why hold it in Edinburgh at all..?

Local artists tend not to be faced with the extortionate temporary accommodation fees that many visitors suffer. I don't imagine that a commercially run venue would drop its fees for a local company, but there is always likely to be an argument for making more money available to support local artists – projects such as Made in Scotland for example:
http://www.scottishtheatres.com/madeinscotland/

There are indeed high costs for almost anyone doing a show on the Fringe, but the opportunity to take advantage of the world's largest arts trade fair, in your city, every year, shouldn't be overlooked.

The festivals also keep a number of Edinburgh's permanent venues viable on a year round basis, thanks to the influx of audiences and money during August – us residents get to enjoy the spoils all year.

The 'spoils' you refer to must have passed me by, David. The fact is that the Traverse and the Lyceum are the only producing venues (each with shrinking seasons) left in Edinburgh following the demise of The Brunton theatre company, Theatre Workshop, and recently the Forest cafe and gallery. Diverse Attractions has gone during the Fringe, who previously subsidised local talent.

So it would appear that your viability argument doesn't hold up - indeed most Fringe venues (run by London producers who take most of the profit back down the road) return to being lecture halls, community centres, cafes, private clubs etc in September, and for the rest of the year Edinburgh is culturally quiet when you compare with Glasgow and other UK cities.

I think the argument to provide incentives for local talent to be showcased in 'the world's largest arts fair' is a sound one, because apart from anything else it would enrich our culture in the city all the year round.

Listing those sadly demised venues makes for some sad reading and I take your point.

I would add that the Bedlam Theatre is kept viable partly thanks to the Fringe, reverting to a student venue through the year. The big International Festival venues generally do well through August, as does the Church Hill Theatre. I would like to see how the Out of the Blue Drill Hall has fared this summer thanks to Leith on the Fringe.

It will also be interesting to see what the reborn Assembly Rooms do through the rest of the year (and in fact what happens to them in August, whoever's running them).

The Stand is preferred bidder to run the Assembly Rooms as a fringe venue from 2012 - although it will be a smaller space as part of it is going to be permanently used as a Jamie Oliver Italian restaurant and 2 shops: http://www.scotsman.com/news/Stand-has-the-last-laugh.6792808.jp

But it costs around £1,000 a week just to stay in Edinburgh during the festival - even before all the other costs of staging a production. If performers from the rest of the world can raise that obscene, profiteered, amount to come to the biggest shop window on the planet surely locals can find the £300 or so it costs to get in the festival program?