Iraq's oil-rich southern provinces are considering plans to set up an autonomous region - a move that reflects their growing frustration with the central government in Baghdad.

Members of the municipal council of Basra, Iraq's second largest city, have been holding talks with officials from councils in two neighbouring provinces on establishing a federal region in the south, following the example of the Kurdish north. The three provinces - Basra, Missan and Dhiqar - account for more than 80 per cent of the proved oil reserves of the country's 18 provinces and provide a large share of the national income.