Alex Neil: "Disgrace"

Mr McConnell also denied parliamentary time for MSPs to debate the matter with Enterprise Minister Wendy Alexander.

ILAs entitled people to a grant of up to �200 towards educational courses to tackle skills shortages but it soon emerged the system which delivered them was open to abuse.

Allegations surfaced in England that some registered training providers were manipulating the system to pocket the money while providing sub-standard courses or no courses at all.

It also emerged that tricksters operating on the street and door-to-door had been convincing people to sign-up for courses which turned out to be either "bogus" or worth substantially less than the �200 discount.

The scheme was suspended in Scotland last month to allow a review to take place.

Sneak-out

Ms Alexander said that the ILA scheme would now be closed as a result of that review.

Ms Alexander said that many of the 110,000 learners who took advantage of the scheme in Scotland would not be affected by its closure.

The Scottish National Party accused the Scottish Executive of trying to "sneak-out" news of the scheme's closure.

Mr Neil, convener of the Enterprise Committee, said it was a "disgrace" that the first minister refused to answer questions.

He said: "He wasn't prepared to come and give a full explanation.

Wendy Alexander, when it was brought to her attention, did absolutely nothing about it.

Tory MSP Phil Gallie

"If he had not wasted time the way he did in trying to stop making a statement, and made the statement instead, everybody would have been happier."

He said that many training providers, such as colleges, were facing cash flow problems as a result of the crisis.

Conservative MSP Phil Gallie said he has been raising the issue since September when he identified the problem.

He said: "Wendy Alexander, when it was brought to her attention, did absolutely nothing about it.

Parliamentary debate

"If she had acted in September then perhaps we could have cracked down on this."

Mr Gallie was also disgusted that the first minister "deliberately suppressed" discussion on the decision to close the scheme.

"He must have known that Wendy Alexander's announcement was going to come along about an hour after the parliament went in to recess.

"What they did was to deliberately suppress parliamentary debate on this issue knowing that they were going to make a very controversial statement."