Traffic jams in Edinburgh are 'throttling' the capital

Transport Minister Nicol Stephen called it a new approach aimed at bringing about "dramatic" improvements.

He said the agency would operate alongside a new network of regional transport partnerships.

Mr Stephen unveiled the blueprint in a statement to the Scottish Parliament and a White Paper setting out the proposals was also published.

Partnership members will come from councils and business.

A new independent body will act as a watchdog, monitoring performance and quality Transport Minister Nicol Stephen

The minister's statement to MSPs also included a pledge to take action over unnecessary roadworks by utility companies.

Mr Stephen insisted the starting point for improvement would be the Scottish Roadworks' Register, developed by road authorities and utilities but not used well enough at present.

It would become "the single national planning tool" for all roadworks carried out in Scotland, with statutory backing.

The minister said: "We will do this by improving the quality and co-ordination of roadworks and by tougher enforcement when things go wrong.

Proposals are aimed at getting traffic moving

"A new independent body will act as a watchdog, monitoring performance and quality, with the power to rule on disputes and impose tough penalties for poor performance."

Mr Stephen also repeated his determination to end "the discredited toll regime" on the Skye Bridge.

A public inquiry into proposed congestion charging was told earlier this year traffic growth in Edinburgh was "a serious threat to the city's quality of life".

The council plans to charge motorists �2 a day to cross one of two cordons into the city.

Quango fear

Up to 30,000 new jobs were expected to be located in the capital by 2015, with road traffic growing by 50% over the next 30 years.

The Scottish National Party said the new agency would lead to the demise of Strathclyde Passenger Transport (SPT).

SNP transport spokesman Kenny MacAskill asked whether control over railways, air and maritime issues would be transferred from UK-wide bodies to the new agency.

Mr Stephen said Scottish Secretary Alistair Darling had indicated he wanted more powers devolved to Holyrood.

Conservative transport spokesman David Mundell said he was concerned the new agency could become another quango.

But the transport minister said it would be accountable to ministers.