SCOTLAND should capitalise on the multi-billion pound Netflix boom by creating a new agency dedicated to film and television.

A Holyrood inquiry has called for radical action to attract more big-budget productions such as Outlander, which has pumped almost £300 million into the economy.

New legislation would establish a quango called Screen Scotland, which would operate free from stifling red tape and help entice some of the world’s top actors and directors.

It comes amid the continuing rise of on-demand TV and movies, with Netflix planning to spend between seven and eight billion US dollars commissioning new content this year alone.

MSPs on Holyrood’s culture committee said there was "no guarantee" that Scottish Government-backed plans to establish a screen unit within the existing arts body Creative Scotland would deliver the transformation required.

They said the “cumbersome” scheme was overly bureaucratic and would not allow the "dynamic decision-making" needed in a fast-moving industry.

Committee convener Joan McAlpine MSP said: “It is clear there are dedicated and talented individuals working on screen within Creative Scotland. But, we believe that ultimately the Screen Unit needs to be transformed into 'Screen Scotland': an independent screen agency with a wide-ranging remit to represent and promote the screen sector in Scotland.

“We were impressed with the leadership and vision of the screen sector and believe Screen Scotland should be led by individuals with a strong knowledge and understanding of the sector, and the vision to ensure that Scotland can compete successfully in a global market."

After getting the backing of Culture Secretary Fiona Hyslop, proposals to create a dedicated new screen unit within Creative Scotland were published in December 2017.

However, members of the culture committee, who have been considering the plans, have called for a radical rethink – taking the unusual step of publishing an interim report calling on ministers to set up a new quango.

Although work to establish the screen unit is already under way, MSPs said plans must now be drawn up "for how it can be transformed into a standalone agency".

They said: "We want a vibrant screen sector in Scotland. That requires a standalone agency which is not encumbered by bureaucracy and is industry led.

"An autonomous Screen Scotland will help nurture, develop and support indigenous talent, deliver more studio capacity, attract major productions and represent Scotland to the rest of the world."

While filming of TV drama Outlander has brought substantial investment to Scotland, the committee said this was "an exception" and the country had "failed to invest in studio space and capitalise on these new opportunities".

Legislation at Holyrood would be needed to set up a standalone screen agency, and the committee said it would publish further "evidence" for this in a full report in June.