Construction companies have been accused of an "act of bad faith" and of "misleading" MPs over a compensation scheme for blacklisted workers.

A report by the Scottish Affairs Select Committee said eight firms behind the scheme were more interested in minimising damage to their reputation and finances rather than a genuine attempt to tackle the scandal.

The MPs called for a full public inquiry.

The blacklist was discovered in 2009 after a raid by the Information Commissioner's Office (ICO) on the West Midlands offices of a firm called the Consulting Association.

The ICO seized a database containing the names of over 3,000 construction workers and environmental activists, which was used by dozens of companies.

The Consulting Association has since been closed down.

Workers said they were included on the list often for merely raising health and safety concerns on building sites, or for being union activists, with many believing they had been denied work as a result.

The committee said it was difficult to conclude that publicity around the launch of the compensation scheme last year was a "deliberate attempt to mislead", and that the implication unions were in agreement was "callous and manipulative". A statutory code of practice was required to eradicate blacklisting, the committee said.