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The Children's Society's reasons for withdrawing from Wales are "unpersuasive in the extreme", according to a report by the Welsh Affairs Select Committee.

The Children's Society's board of trustees decided to withdraw completely from Wales in October last year in response to financial pressures. Thirteen projects will close.

"The principal argument, that the decision was taken in order for the Society to retain its status as a body which is able to influence government policy, is scarcely credible in the context of the outrage with which the decision has been greeted in parliament, in the National Assembly for Wales and within the church in Wales," states the report.

It describes the second argument, that the society's operations would "implode" if it tried to continue its work in Wales, as "highly dubious", and says that it is "unacceptable" for the cost of Welsh language provision to be used as an excuse.The committee describes as "particularly disappointing" the recommendations of London managers to the trustees that the society withdraw from Wales without consulting Welsh managers.

The report proposes the development of a code of practice for voluntary bodies operating in more than one country in the UK, as well as a "public commitment" from voluntary bodies to consult properly before withdrawing or reducing services.

It urges the government to support a code of practice and consider whether adopting the code should be a condition of bodies receiving funding from the UK government.

Chief executive Ian Sparks said: "Supporters do not give money to charities to subsidise local authorities, yet this is the reality of welfare provision today.

"We accept and regret that our decision has caused a great deal of distress in Wales. But despite the committee's own conclusions, the truth is that our financial position left us with no alternative."