Digby Jones told BBC Scotland that ministers should be looking to increase wealth creation rather than concentrating on the redistribution of wealth.

However, he has backed away from calls for the introduction of further fiscal autonomy north of the border.

Andy Kerr: Good working relationship

His comments have been dismissed as "very very unhelpful" by Deputy Finance Minister Andy Kerr.

In an interview with The Scotsman newspaper, Mr Jones described some of the Scottish Executive's current policies on business taxation as madness.

He also said that he wished ministers were better informed about business issues.

Speaking on BBC Radio's Good Morning Scotland programme, Mr Jones said politicians had to understand the importance of creating wealth rather than constantly concentrating on its redistribution.

He said: "We are putting the case forward more forcefully because the members of the CBI - the businesses of Scotland, the people who pay my wages - are saying frankly that the Scottish Executive has not communicated with them and listened to them to show that they believe in the wealth creation process in the same way.

More accountable

"It has got to be the case that everybody in Scotland will become wealthier, there will be more tax paid and there will be more schools and hospitals if the businesses of Scotland get on and make good profits."

However, Mr Kerr stressed that he and other ministers were in regular contact with Scottish companies.

He said suggestions that ministers were not listening to business were "nonsense".

I think it is a bit shallow and a bit disparaging to make such remarks

Andy Kerr Deputy Finance Minister

"I am disappointed that he took that position," he said.

"I think that if he spoke to some of his colleagues in CBI Scotland he would get the truth of the matter.

"I think it is a bit shallow and a bit disparaging to make such remarks."

Mr Jones was reported by The Scotsman as saying that the executive would be more accountable and responsible if it had to raise in taxes all the money it spent.

Speaking on BBC Radio, he argued that politicians had to understand that the money they handled was not theirs.

Working relationship

He said: "I actually believe that the more accountability that you can put on the politicians for spending your money the better results you get."

But he stressed: "The members of the CBI are very firm in the fact that more fiscal autonomy for the Scottish Parliament isn't actually what they want.

"My job is to put forward their view, and that is that to have more than these limited tax raising powers that they have is not on the agenda."

Politicians have to understand that it is the person looking them in the eye that gave them the money to spend and they have to spend it with a view to creating a better Scotland

Digby Jones

He also denied that members of the CBI in Scotland had pressured him to tone down his stance following the newspaper article.

"I stand by what I said, which is that this is not a political point," he added.

"I am trying to get across the idea that politicians have to understand that it is the person looking them in the eye that gave them the money to spend and they have to spend it with a view to creating a better Scotland."

Scotland currently receives all the money it spends from the treasury in London.

Under the legislation which created the parliament, ministers do have the power to cut or raise the basic rate of income tax by two pence in the pound.

However, the Scottish National Party is campaigning for the Holyrood parliament to be given full fiscal autonomy.

Mr Jones was in Glasgow on Friday to address CBI Scotland's annual dinner.