Tom McCabe said he was not proposing top-down solutions

Speaking at Holyrood, the finance minister said the Scottish Executive did not want to impose changes itself.

Instead, Tom McCabe called on councils and service users to provide feedback on an executive discussion document.

He said while he accepted there should be a look at Scotland's 32 councils, each with highly paid directors, reform would not just be about reorganisation.

Mr McCabe said: "I am confident that we will see substantial changes in the way in which local government organises itself, but I want to be clear that our agenda is much more ambitious than a crude reorganisation.

"The mistakes of the past were predicated on a vendetta against local government, the successes of the future will be predicated on a comprehensive and objective examination of how all those who serve the public can work smarter together."

FIVE PRINCIPLES Be user-focused and personalised Drive up quality and encourage innovation Continue to improve efficiency and productivity Be joined-up and minimise separation Ensure strong accountability

The discussion document Transforming Public Services is built around five principles, including being user-focused, innovative and accountable.

Mr McCabe said these were key elements of reform and raised questions about whether the current structure of public services suited a nation of five million people.

Scottish Socialist MSP Tommy Sheridan questioned the need for all 32 councils to have their own chief executive, finance director, education director and other top officials.

He said: "Isn't it time that we merged local authorities in order to release funds to provide decent wages and conditions for the workers on the ground who deliver the essential services instead of maintaining these empires for chiefs on wages of over �100,000?"

Mr McCabe said he was on record as saying the issue needed examination.

"Are there any other ways we can bring services together? The answer to that will be an important part of this whole dialogue process," he said.

'Sophisticated leadership'

Cosla president Pat Watters welcomed the document and said it was not a "soft option" and the minister had shown a sophisticated style of leadership.

He added: "Scotland's councils are up for this, we are keen to move and see progress and there are some specifics in the statement that we particularly welcome."

He said these included a reduction in regulation and inspection.

Meanwhile, Stirling and Clackmannanshire councils unveiled plans to jointly run many frontline services.