THE Scottish Government has signalled its willingness to hand greater autonomy to the country's three island councils if Scotland becomes independent.

First Minister Alex Salmond and Finance Secretary John Swinney yesterday announced a ministerial working group to consider requests for more powers from Orkney, Shetland and Western Isles councils.

In a "Lerwick Declaration", made during the Cabinet's visit to the Shetland capital, Mr Salmond said he was supportive of local decision-making.

The move comes in response to the authorities' joint campaign, Our Islands – Our Future, which seeks greater control over resources, economic development and transport.

Mr Swinney said the campaign was an important initiative and added: "Scotland's island communities are an invaluable source of energy, creativity and talent.

"They are made up of people with rich and diverse backgrounds who all contribute to making Scotland as a nation flourish. One of the great advantages of the independence debate is the opportunity to reflect on the sort of Scotland we wish to see."

Mr Salmond said: "We believe the people who live and work in Scotland are best placed to make decisions about our future – the essence of self-determination – therefore we support subsidiarity and local decision-making.

"It follows, therefore, that any government committed to that policy should listen to the views expressed across all of Scotland."

The working group will be chaired by local government minister Derek Mackay and include senior representatives of the three island councils.

The discussions may in future be extended to include Highland, Argyll & Bute and North Ayrshire councils, which also include island communities, a Government source said.

Orkney, Shetland and Western Isles councils are lobbying for control over shorelines and seabeds, a potentially important source of revenue from offshore wind power, and powers to set transport policy.

Government aides said any offer would depend on Scotland becoming independent, as the seabed was the responsibility of the UK-controlled Crown Estate.

But Tavish Scott, LibDem MSP for Shetland, said: "The SNP Government says islands can have more power if they vote for independence. That's not a real-world response to the legitimate point the island councils have been making.

"Nor does it address the sweeping centralisation that has been SNP Government policy for six years."

Scottish Conservative Highlands and Islands MSP Jamie McGrigor said: "If the Scottish Government is so keen on this idea, why not introduce it now?

"The problem here is the SNP has a clear centralisation agenda, so long as it stops at the border.

"Any new 'declaration' appears to be more of a referendum bribe than anything else."

The Scottish Conservatives said they supported greater devolution of decision-making to local authority level.

Scottish Labour's devolution commission, set up in response to the independence debate, has also backed a bigger role for local government, including control of Crown Estate shoreline revenues.

The Scottish Government move was welcomed by the leaders of all three island councils.

Gary Robinson, Shetland Islands Council's leader, said: "This has to be seen as a positive development as we seek to get the best out of the change that will happen beyond the referendum in 2014."

Councillor Steven Heddle, convener of Orkney Islands Council, said: "This is an opportunity to convince the Government our island communities can flourish and make a greater contribution to the country if we are suitably empowered."

Angus Campbell, leader of Comhairle nan Eilean Siar (Western Isles Council), said: "We now look forward to a similar engagement with the UK Government."