They (the government) scrapped the design, closed the stadium, dug up the pitch - now will they take responsibility and apologise to millions of sports fans for they mess they have created?

William Hague

The government blames the Football Association, which owns the North London site and had given repeated assurances that its Lottery-funded plans for a national sports stadium were on track.

Mr Smith said Wembley was still the preferred site for the project.

But MPs are urging him to consider other areas such as Birmingham.

Disbelief

Mr Ainsworth told the Commons: "People here and all over the world are shaking their heads in disbelief and asking why, under this government, nothing seems to work any more."

He said that by intervening in December 1999 to remove athletics from the original plans for Wembley's redevelopment, Mr Smith had undermined investor confidence.

Earlier, Conservative leader William Hague told MPs: "They (the government) scrapped the design, closed the stadium, dug up the pitch - now will they take responsibility and apologise to millions of sports fans for they mess they have created?"

Ainsworth: Culture Secretary should resign

Mr Smith said the FA had told him last week that it needed another �300m of public money to pay for the �650m re-development of Wembley because it was unable to find private backing.

"This is simply not on - especially when the current design of the new Wembley stadium is on the scale it is and with the number of commercial interests in the project," said Mr Smith.

He rejected the calls for his resignation - saying Mr Ainsworth had made the demand 38 times before.

Birmingham option

Removing athletics from Wembley to a separate site in Enfield, North London, was the right decision, Mr Smith insisted.

Former Conservative party chairman Sir Norman Fowler, MP for Sutton Coldfield, asked the secretary of state to consider Birmingham for the new football stadium.

"The transport is in place, the land is available, and public support absolutely assured," he said.

Smith: Looking at alternatives

Birmingham City Council has begun talks with the FA on using a site in the Midlands for the national stadium.

And a ministerial team led by Home Secretary Jack Straw is trying to find an outside group to salvage the plan.

Asked if the involvement of Mr Straw's committee was a personal 'slap in the face', Mr Smith replied: "No, not at all.

"It's an existing ministerial committee, it seemed the obvious place to ask for some work to be done from."

The proposals were rapidly heading towards football's answer to the Millennium Dome

Bob Russell MP, Liberal Democrat

Downing Street also blamed the FA for the collapse.

A spokesman said: "People will find it a bit odd that at a time when football has never been richer, it cannot secure the financial support for this project."

'Nonsensical proposals'

Lib Dem sports spokesman Bob Russell said: "The proposals were rapidly heading towards football's answer to the Millennium Dome.

"It is of no surprise that city investors did not want to foot the bill for such nonsensical proposals."

He called for a scheme which had proper road, rail and air access, as well as incorporating athletics.