The Scottish Parliament has been told to "grow up" by the Confederation for British Industry (CBI).

The employers' organisation attacked the performance of the institution, which was accused of being "self-indulgent" by CBI Scotland director Iain MacMillan.

The CBI said the experience of devolution in Scotland had led it to the view that regional assemblies damage economic growth.

I think that the parliament needs to grow up

Iain MacMillan CBI Scotland

And it has argued that the UK Government should abandon plans for regional assemblies in England.

However, the claims have been rejected by Deputy First Minister Jim Wallace.

The CBI was giving its response to a Westminster White Paper on proposals for regional government south of the border.

Deputy Prime Minister John Prescott said in May that he believed the UK could not achieve its full potential without assemblies.

However, the CBI claimed there was no evidence to suggest that such a move would improve economic growth.

Delivering what it described as a vote of no confidence in the government plans, the organisation said its views have been informed by experiences of devolution in Scotland and Wales.

Improving lives

Mr MacMillan said too many of the issues addressed by the Scottish Parliament so far had not been significant.

He highlighted the ban on fox hunting and moves to encourage breast feeding in public.

"These things are not important in the great scheme of things about getting Scotland's economy moving, improving people's lives and all that kind of thing," he said.

Digby Jones accepted an apology

"That is all self-indulgent and I think that the parliament needs to grow up.

"That's the sort of thing that the CBI and other business organisations in other parts of the country have got on their radar screens and it isn't helping."

Mr MacMillan said that while the parliament had not been perfect since its inception in 1999, the CBI wanted to help make it work.

However, Mr Wallace said he did not accept Mr MacMillan's analysis.

"I think, and I think many business people I have talked to agree, that the accessibility of the Scottish Parliament and Scottish ministers has been very helpful indeed to business.

"They never had that kind of accessibility with Westminster ministers," he said.

The CBI's comments come the month after its director general, Digby Jones, warned the Scottish Executive to guard against alienating business leaders.

Regional assembly

He also sparked controversy when he suggested that people living in Scotland had "an enormous chip on their shoulder".

Mr Jones later accepted an apology from Scotland's Environment Minister Ross Finnie, who called him an "English prat" after he urged the Scottish Executive to do more to help businesses north of the border.

Mr Prescott said in May that the government's plans to offer English regions a referendum on the creation of elected assemblies would offer "new choice, new power and new voices".

Assemblies would be able to raise money through council tax and borrowing, and could be up and running early in the next parliament, Mr Prescott said.

The new assemblies would be responsible for economic development and regeneration, planning, transport, housing and culture.