THE Confederation of British Industry (CBI) has moved to counter the impression it is a political organisation as it unveiled its new director for Scotland.

CBI Scotland has hired technology veteran Hugh Aitken, formerly of Sun Microsystems, to lead its Scotland office as it looks to rebuild its reputation following a damaging referendum campaign.

Mr Aitken succeeds Iain McMillan, whose final few months in charge were dogged by controversy.

The CBI found itself at the centre of a political storm last April when it claims an internal error led to it registering itself as a campaigning group with the Electoral Commission.

The move was quickly rescinded after the CBI took legal advice, but not before a swathe of high profile members, resigned to preserve their political neutrality.

John Cridland, director-general of the CBI, estimates that about 20, largely public sector bodies resigned over the issue, and while some have signalled a willingness to return to the fold the group was unable to confirm whether any had rejoined.

Asked if one of Mr Aitken's immediate priorities will be to rehabilitate the CBI's reputation, director-general John Cridland said: "The Electoral Commission episode wasn't the CBI's finest moment.

"We made some mistakes. But what did we do? We put our hands up. We were absolutely transparent that we had made an error in good faith. We registered when we shouldn't have registered. I was very honest about that. It was done without my authority and without my knowledge.

"I'm not blaming anyone - it simply happened, but we put it right.

He added: "We are not, and do not wish to be a political organisation."

Mr Aitken has returned to Scotland to take up the CBI job following a stint in the US working for Microsoft Nevada and ASCC, Aitken's Supply Chain Consultancy.

Like Mr Cridland, he bristled at the suggestion yesterday that the CBI had become irrelevant as a result of the referendum fiasco. "If it was irrelevant, I wouldn't be here," he said. "Number one - I don't do irrelevant stuff."

And he emphasised the role it has to play for the 1200 companies registered in Scotland - and 500,000 private sector employees - it represents at a crucial economic juncture.

Mr Cridland said there was optimism among entrepreneurs that the "economic circumstances are positive" in Scotland, pointing to encouraging data on the economy. But he also noted the "downside risks" presented by political uncertainty at home and abroad.

On the domestic front, he pinpointed the opportunity offered by further devolution with the recommendations of the Smith Commission.

Asked to comment on the SNP's support for full fiscal autonomy for Scotland, he said: "I think the job now is to deliver on Smith. That's what the Scotland Bill will deliver.

"We are a pragmatic organisation that delivers who deal with life it is. It is politicians who talk about constitutional matters."

Mr Cridland also addressed the effects of the plunging price of oil, which this week plunged below $50 a barrel. But while this is challenging for the energy sector in Aberdeen it also brings a boost to consumers and other business arising from lower prices, he said.

Asked whether the falling oil price would dominate the early days of his tenure, Mr Aitken said: "First of all I need to fully understand the position. I listened to Sir Ian Wood on the radio this morning talking to it (and) he gave a completely different perspective. He wanted everyone to rally at the moment and not critique the oil industry, which is in need of real help. If that's the case we will work with them to figure out what that rally call means."

Mr Aitken also stressed it is "absolutely critical" to work with the SNP administration and with the 45 per cent of the electorate which backed Scottish independence.