The bill is aimed at protecting children from unsuitable adults

A Youthlink spokesman told MSPs the sector was facing a financial shortfall because of projects like the Olympic Games and the loss of euro funding.

Alex Cole-Hamilton said the cost of new vetting procedures for staff, a requirement of the child protection bill, was "yet another burden".

The umbrella group for the voluntary sector said the checks could cost �20m.

The Protection of Vulnerable Groups (Scotland) Bill was proposed in the aftermath of the Soham murders.

It includes a recommendation for a vetting scheme for those working with children and vulnerable adults.

However, the voluntary sector has claimed the changes could force many groups to fold.

Deter volunteering

Mr Cole-Hamilton, senior parliamentary officer for Youthlink, said: "Be under no illusion that the voluntary sector is in quite a hostile environment at the moment and we are all living from hand to mouth.

"This is only going to be compounded by successive organisations losing European Social Inclusion funding and increased competition from things like the Olympic Games and the amount of lottery funding that is going to take up.

"So this is just yet another burden on the voluntary sector."

The sector's umbrella group, the Scottish Council for Voluntary Organisations (SCVO), warned MSPs that the bill would create a large unproductive bureaucracy, deter volunteering and force some groups to close.

Russell Gunson, SCVO policy and communications officer, questioned the effectiveness of retrospective checking and suggested a time frame of about 10 years would be needed if groups were going to be able to afford its implementation.