COUNCIL efforts to seize the initiative on public sector reform by supporting voluntary mergers and shared services instead of wholesale reorganisation were praised by ministers yesterday.

The Convention of Scottish Local Authorities (Cosla) agreed to publish a six-point "think piece" on reform next month, as its contribution to the debate on the shape and scale of the public sector.

The paper also advocates the integration of local health and economic development services into councils, and allowing island councils to run all services in their area within a single border. Quangos and Scottish Executive agencies such as Communities Scotland could also be broken up and theirwork taken over by democratically accountable local authorities, the paper says.

Council leaders hope the ideas will pre-empt a rival paper being written by Tom McCabe, finance minister, which they fear could bring more drastic measures. Despite the blatant attempt to steal his thunder, Mr McCabe's office said he was "encouraged" by Cosla's efforts. "We are pleased that they are focusing on reform and improving the delivery of public services, " a spokesman said, adding the minister agreed reform should be about far more than the number of councils.

However, within Cosla there is scepticism about some of the proposals. No councils have offered to merge, and there is no sign of any volunteering soon. Some see the idea as Cosla's leadership deluding itself about boundary changes.

The offer to share services is also seen as an attempt to avoid reorganisation.

The theory is that if councils can weave a bewildering web of cross-border partnerships, ministers will find it impossible to unpick and the number of councils will stay at 32.