ONE of the country's top businessmen has described the EU as a "flawed model" and accused the Remain campaign of insulting the public with "outrageous" scare stories.

Jim McColl, the billionaire behind Clyde Blowers, said he remained undecided about how to vote next week but is concerned about being dragged in to a "political and financial model that costs us our sovereignty" and believes the EU needs to be overhauled.

While a high-profile supporter of independence ahead of the 2014 referendum, he said if Leave wins on June 23 then Scotland should "go with that decision", indicating he is sceptical about another vote on leaving the UK being triggered by the EU result.

He told the Sunday Times: "We have a flawed model in the European Union and that isn't being addressed. The current model, where you have problems with the Mediterranean countries and future [model] of new poorer entrants, is an economic minefield that will require additional funding very soon.

"There are huge black holes in EU funding to deal with these issues and that hasn't been mentioned by either side - it's been pushed to the sidelines. I'm heavily undecided about how I will vote, but we need to be part of a different Europe, a better organised Europe.

"My fear is that if we remain we may not get that and may have more negotiating leverage to change things from the outside if we leave. The referendum could simply put an end to further discussion about how the EU could be reformed.

"One of the big issues is sovereignty. I have always been a believer in subsidiarity, that government should always be at the closest level possible to people. The EU is going in an opposite direction at the moment. It needs to rethink its entire model."

Mr McColl was critical of both the Remain and Leave camps, but reserved most criticism for the pro-EU campaign. He added: "Neither the Remain or Leave camps have been entirely honest. But the quality of the discussion from the Remain camp in particular is insulting to the public.

"You have David Cameron talking about World War III, and others warning about house prices. This isn't a proper debate, it's soundbite politics: think of something outrageous and say it."

On the prospect of another independence referendum being called should Scotland vote to stay in the EU but be taken out against its will, he added: "If the UK votes to exit we will have to stick with it and go with that decision. Of course there will be calls for a second [independence] referendum, but we have to guard against creating additional uncertainty.

"That said, businesses will have to assess whether a second referendum could offer them more certainty if it was clear Scotland could remain in the EU."