SCOTTISH Labour has named former leader Iain Gray as one of its representatives on the devolution commission headed by Lord Smith of Kelvin.

His appointment came as Scottish LibDems leader Willie Rennie said his party's proposals would help employers and boost the economy. Mr Gray will be joined by a Scottish Labour MP on the commission.

The party said yesterday the appointment would be confirmed soon. It is understood that Cumbernauld MP Gregg McClymont, who is on honeymoon in Cyprus, has been lined up for the role.

The pair will join representatives from the other parties in agreeing a new package of devolved powers.

Under the fast-track timetable promised during the referendum campaign, draft legislation is to be published by the end of January.

Mr Gray, Labour's finance spokesman at Holyrood, was not involved in drawing up his party's proposals to extend devolution, which were unveiled six months ago and include handing Holyrood responsibility for raising a bigger share of income tax.

Scottish Labour leader Johann Lamont said: "Iain will offer a fresh perspective, an eye for detail and strong Labour values which will be valuable assets to this important process. We set out a package of proposals which we believe will strengthen the Scottish Parliament while retaining the benefits of the UK.

"We will engage in the Smith Commission constructively and positively to find a consensus but are determined to ensure Scotland has the best of both worlds."

Lord Smith's commission was announced after the referendum and will attempt to reach consensus over new powers for Holyrood.

Labour, the LibDems and Conservatives have publish-ed their own plans which, though broadly similar, differ on the details.

They and the other parties have been asked to submit new plans within a fortnight before talks begin.

Mr Rennie said yesterday his party's plans - which include assigning corporation tax raised in Scotland to the Edinburgh parliament -would help employers.

Speaking during a visit to a factory in Livingston, he said: "I hope that all parties will now work with us in the Smith process so that job-creators across Scotland are given the tools they need to build a stronger economy."

SNP MSP Maureen Watt said: "During the referendum campaign the No camp made a clear vow of more powers for Scotland. They must now deliver the substantial economic powers we need to create jobs and encourage growth, or they will pay a heavy price at the ballot box."