SCOTTISH business leaders clashed before a committee of MPs in Glasgow over the potential costs and benefits of independence.

The House Of Commons Businesses Innovation And Skills Committee met in Glasgow University to hear opinions from business bosses on the implications of independence.

Fears were raised over potentially increasing costs to firms from extra regulation and Scotland being over-reliant on oil and gas.

It was argued, by those in favour of a Yes vote in the 2014 referendum, the publicity over possible independence had already given a boost to investment. They said a newly separate Scotland would provide even more confidence.

However, Iain McMillan, director of CBI Scotland, raised a series of concerns the organisation had with independence, including uncertainty over European Union membership, keeping the pound, decreasing oil revenues and the cost of borrowing.

Gordon MacIntyre-Kemp, founder of Business For Scotland, a group of 500 companies in favour of independence, said official figures showed Scotland was outperforming the UK in attracting investment and would have a lower budget deficit.

Glasgow North Labour MP Ann McKechin was among the MPs who questioned the pair on a range of issues.

Mr McMillan said the overall economic case for independence was "highly dependent on oil and gas revenues, which are decreasing".

He added: "Government expenditure figures show that Scotland without oil and gas revenues would have an £18billion deficit, which is 14% of Gross Domestic Product while the UK is 8%. Including 90% of the oil and gas share, that falls to 5% for Scotland.

"But oil revenue is volatile. In 2011/12 it was £10bn, two years earlier it was £5.9bn. In the short term the Scottish Government is probably right, it could rise, but it is a long way off its peak in 1999. We are into the long goodbye (of high oil prices)."

Concerns were raised that a new country would spark risks among lenders and borrowing would be higher than with the UK to offset the risk.

Mr MacIntyre-Kemp argued you could not ignore the oil and gas figures and said their removal was designed to confuse the issue. He said: "Well, let's take London's tourism revenue out of the equation. It is part of the economy."

He admitted there was volatility. He said in 1999 the oil price was $10 a barrel, last year it was $110, and said that was an argument for creating a sovereign oil fund to invest annually.

He said independence would provide a boost to the economy and said publicity was generating inward investment.

He added: "By voting Yes Scotland is making a statement of confidence. A study showed £800million to £1bn of TV advertising is what the publicity is worth."