Plaid Cymru and the Conservatives both criticised the White Paper

The Welsh Conservatives said the white paper proposals were "nothing more than an unworkable sticking plaster".

The Welsh Liberal Democrats accused Mr Hain of "raising the white flag to the devolution-sceptics" within Labour.

Plaid Cymru called the White Paper "a major disappointment" and demanded full law-making powers be brought forward.

The white paper, outlined in the commons on Wednesday by Welsh Secretary Peter Hain, proposes giving the assembly more powers to shape laws for Wales in areas like health and education, while streamlining Westminster's role.

But it states that a referendum would be needed before the assembly was given full law-making powers.

The people of Wales want the assembly to have the tools to do the job Mike German, Welsh Liberal Democrats

First Minister Rhodri Morgan said the white paper would build on the first six years of devolution.

He added: "It is time to develop the devolution settlement further so that we can deliver yet more effectively for the people of Wales.

"This white paper shows devolution keeping pace with what is needed to do the job effectively.

"This is all about bringing democratic government and legislation closer to Wales and closer to the people."

But Plaid's Parliamentary leader, Elfyn Llwyd, said: "The White Paper gives no commitment to Wales securing a proper parliament.

"It mentions full law-making powers may be granted at some time, if a so-called consensus emerges.

"We in Plaid Cymru demand to know what the government means by consensus and what criteria they will employ to measure such a consensus.

"If they only listen to Welsh Labour MPs, Wales will be lumbered with an ineffective and weak assembly for years."

Mike German, Lib Dem leader in the assembly, said Labour had "cast aside the route map which the Richard Commission gave to Wales".

The assembly proposals were outlined by Peter Hain at Westminster

He added: "Unable to agree among themselves, they have cobbled together a system which offers what could be a step towards enhanced assembly powers.

"The people of Wales want the assembly to have the tools to do the job."

Welsh Conservative assembly leader Nick Bourne, said: "Labour's cobbled together legislation offers little prospect of stability and progress for the people of Wales.

"All parties agree the present situation is not sustainable in the long-term - but these proposals are nothing more than an unworkable sticking plaster.

"The people of Wales deserve a clear way forward. A multi-option referendum would enable everyone in Wales to voice their opinion.