The Scottish Executive ditched the proposals in the light of mounting cross-party opposition.

However, Justice Minister Jim Wallace said the decision had been taken by the Cabinet due to "resourcing and timing issues".

It's clear that this was never going to make a difference out on the streets and if anything it would add to the problems

Paul Martin Labour MSP

He said the executive would lodge an amendment to its own Criminal Justice Bill to kill off the proposal.

The u-turn came after it emerged that two Labour backbenchers had backed a Tory amendment against the policy.

Paul Martin and Johann Lamont put their names to the amendment from Tory deputy justice spokesman Bill Aitken.

He wanted to amend the Criminal Justice Bill to scrap the pilot project.

Mr Martin said he had opposed the change because the children's hearing system was already over-burdened.

'Effective opposition'

The MSP for Glasgow Springburn said: "This is a significant step forward in the Criminal Justice Bill.

"I think it allows us to deal with the real possibilities for tacking youth crime.

"It's clear that this was never going to make a difference out on the streets and if anything it would add to the problems."

Mr Aitken said his party had shown the way and "provided the effective opposition".

Bill Aitken's move won support among Labour MSPs

"After Jim Wallace's partial climbdown on smacking, his complete u-turn on Peterhead, bail for murderers and rapists, this latest reversal of policy makes a mockery of his ability to hold office," he claimed.

Scottish National Party deputy justice spokesman Michael Matheson said the Scottish Executive was "in complete disarray" over the bill.

"This latest announcement shows that they have lost their grip on tackling justice problems in Scotland," he claimed.

Plans for the pilot project were announced in June by ministers as the issue of youth crime in Scotland became more politically significant.

The proposals formed part of a 10-point plan to tackle youth crime.

It was suggested that youth courts could be modelled on the specialist drugs courts introduced last year, and that sheriffs would be given specialist training to help 16 and 17-year-old persistent offenders.