Scottish sectarianism, which reaches the height of its violent expression at clashes between Celtic and Rangers football teams, will be treated as a racially motivated crime under plans published yesterday.

Calling it the country's "secret shame", the First Minister, Jack McConnell, announced a package put together by a cross-party working group of MSPs to challenge "bigoted attitudes and bigoted behaviour wherever they are found".

Since 1999, eight people have died and the lives of thousands more have been blighted by sectarian violence in Scotland, according to Nil By Mouth, an organisation set up to stamp out sectarianism.

Under proposed legislation, religious hatred would be made an aggravated offence and fully recorded in police reports brought to the courts.

The Scottish Executive wants to see guidelines introduced by football clubs against supporters who incite religious violence by banning them from matches. The plans also call for greater co-operation between clubs, police and the courts in dealing with fans charged with sectarian offences at or near football grounds, and the licensing of all street traders outside stadiums to prevent them from selling offensive sectarian or paramilitary goods.

Mr McConnell said: "I want Scotland to be a society where we respect cultural differences, and celebrate our rich and diverse religious traditions. I want all Scots to be proud of the Scotland we live in today ... We cannot allow ourselves to be dragged down by the dead-weight of religious hatred and sectarian bigotry."

Rangers and Celtic clubs have campaigned to stop their supporters goading each other with sectarian chants and songs. But Rangers' Dutch defender Fernando Ricksen said this week that Catholic players had to hide their faith because of sectarianism at the club. He also said he had to change his phone number regularly because of abuse.