BEREAVED families have been told a public inquiry into Scotland's baby ashes scandal has not been ruled out as the First Minister announced separately that a £100,000 counselling fund has been set up.
Police are also to hold an investigation after the publication of a report by Dame Elish Angiolini into practices at Mortonhall Crematorium in Edinburgh over the period 1967 to 2011.
Public Health Minister Michael Matheson told the Scottish Parliament he wanted to reassure families affected that he had heard their call for a full public inquiry.
Alex Salmond said yesterday that new legislation will be brought forward at the earliest opportunity to prevent the "terrible events" of the baby ashes scandal being repeated.
He said: "No-one should have to experience this pain and we are determined that no-one shall ever again."
Lord Advocate Frank Mulholland has referred the report to Police Scotland for further investigation into any possible criminality, the First Minister added.
Dame Elish's report said hundreds of parents whose babies had been cremated at Mortonhall faced a "lifetime of uncertainty" over what happened to their child's remains.
Over decades, staff secretly disposed of the ashes of stillborn and dead newborn babies without their families' knowledge.
Parents were instead told there would be no ashes left to scatter following cremation.
A separate independent commission, led by former High Court judge Lord Bonomy, was set up to review policies and practice across Scotland in relation to the handling of ashes following the cremation of babies and infants. His report is expected to be released in the coming weeks.
Opposition parties called for an immediate inquiry but Mr Matheson said the Scottish Government intended to wait for the findings of Lord Bonomy's Infant Cremation Commission.
Mr Matheson said: "We have never ruled out a public inquiry.
"We have always said we would reflect on that once we have received the reports from Dame Elish Angiolini and Lord Bonomy. That is what we will do."
Labour leader Johann Lamont said the minister should agree to a public inquiry now, saying "this is a matter for all of Scotland".
Conservative health spokesman Jackson Carlaw said he should "reconsider the request".
He said Dame Elish's report had been deeper and more disturbing than he expected.
He said: "She herself uses the word 'grim'."
Liberal Democrat Jim Hume said an inquiry would "actually ascertain whether other crematoria were involved".
Dame Elish's report produced 22 recommendations for Edinburgh City Council and other agencies.
After the practices at Mortonhall came to light, other local authorities, including Glasgow and Aberdeen City Councils, faced questions about their crematoria.
Edinburgh City Council is to set up a working group to produce an action plan in response to Dame Elish's report.
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