Dungavel's capacity is being increased
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Church leaders have voiced "outrage" after the Home Office rejected proposals to build a hostel which would house asylum seekers in Scotland.
The plans had been put forward by the Refuge Scotland Project as an alternative to the controversial Dungavel Immigration Centre.
The churches and charities, brought together by Labour MP Michael Connarty, wanted the government to shut Dungavel.
However, the Home Office is instead expanding the Lanarkshire centre.
Plans to create an additional 43 beds for single adult males at Dungavel, which can already hold 150 people, were confirmed last week.
Secure accommodation
Home Secretary David Blunkett said the move was "an important part of our strategy to remove those people who have no right to be here".
The Home Office is said to favour secure accommodation because of fears that failed asylum seekers will run away.
The Church of Scotland had offered to convert a building in Glasgow into a refuge to provide an alternative to Dungavel.
Refuge Scotland Project - which includes Shelter, the National Coalition for the Homeless and the Church of Scotland - had asked the government to fund a year-long pilot project.
However, the Home Office rejected the idea, which it said "does not offer the prospect of a viable alternative to detention at Dungavel".
Mr Connarty, the MP for Falkirk East, said the project had offered "a practical alternative".
"The Home Office have rejected it, they have also rejected a request to meet the Refuge Scotland Group," he said.
"They did meet the Church of Scotland committee, when they were down on their annual visit, and we did think there was hope but in fact the reality is 'go away we are not interested'.
"I think this is a punishment regime for easy victims of a very hard regime."
Reverend Allan McDonald, convener of the Church of Scotland's Church and Nation Committee, said: "We are outraged."
He said Roman Catholic bishops would also be angered by the decision.