The Social Work Inspection Agency (SWIA) said there was "much to learn" from its inquiry into the case.

It has called for changes to the fostering regulations to make sure that a "robust" assessment of friends and relatives is carried out.

A national system of advocates for children is also suggested.

The report recommends that the Scottish Executive should:

• Establish a "multi-agency national resource" for those working with complex child protection issues, with a register of experts and a database of relevant research

• Urgently develop guidance to help establish the best course of action when a child is found to be living in the household of a convicted sex offender

• Amend fostering regulations so that friends and relatives must be formally approved as carers for a child placed with them, based on an assessment of their ability to care for and protect the child

• Set up a national system offering all youngsters involved in children's hearings the chance to have an advocate

• Consider extending the use of video recording child witnesses' statements across the country.

The report also makes a series of recommendations for Scotland's local authorities, which include:

• Ensuring that copies of children's files are transferred immediately if they move to another area

• Making sure that all foster carers have access to appropriate training for the role

• Having a senior staff member in every school who is responsible for recording and passing on concerns about a child's protection

• Ensuring that all social workers who deal directly with children are regularly supervised.

Among the other recommendations, is it suggested that:

• All agencies dealing with children at risk should produce and regularly review a chronological list of key events and contacts

• Every NHS board ensures that every child with complex needs has a health professional to take an overview of their care

• Child protection committees should develop guidance for caring for children when their parents are arrested

• Agencies inform social work managers and frontline staff when they know a convicted sex offender is acting as a parent. A risk assessment should be carried out, with particular attention to the dangers posed by the person.

The report also made a number of specific recommendations for the Western Isles NHS Board and the local authority, Comhairle nan Eilean Siar.

They included a review of the supervision policy for the council's social work staff and the creation of an action plan for each child in need of care and protection.