THE leaders of Scotland's island councils have agreed an "ambitious" plan for talks with the Scottish Government about new powers.

Local Government ­Minister Derek Mackay held talks with Orkney, Shetland and Western Isles council bosses.

The meeting took place after First Minister Alex Salmond announced last month there would be talks on whether the islands should have more control over their own affairs.

As well as agreeing a formal remit for the island areas working group and a workplan, talks in Edinburgh looked at options for devolving the functions of the Crown Estate.

The possibility of giving the islands more control over energy, renewables, transport and governance issues will be discussed later.

Steven Heddle, convener of Orkney Islands Council, said: "Our agenda and our commitment is substantial, and we hope for continuing productive discussion and significant and tangible benefits for our communities as a result."

While both the Scottish Government and council leaders from the three island authorities were positive about the talks, the Liberal Democrat MSPs for Orkney and Shetland accused the SNP of holding out the prospect of extra powers after independence as a "bribe" to islanders ahead of next year's referendum.

Shetland MSP and former Liberal Democrat leader Tavish Scott said: "The Nationalist Government has removed local powers from our islands every year they have been in power. So, the starting point is to reverse their record."

The next meeting of the island areas working group is due to take place in early October in Stornoway.