Northern Secretary Peter Hain has said the change of stance by Sinn Féin forced him to withdraw the Bill dealing with on-the-runs.
He criticised the party for claiming the legislation should not apply equally to security forces members also suspected of paramilitary offences before Good Friday 1998.
"When it became evident that Sinn Féin, which had asked for this legislation in respect of on- the-runs, had instructed the on- the-runs not to use it because it included and applied to the security forces, what was the purpose of proceeding with legislation designed to achieve an objective for which the people were not going to insert themselves?" he said on BBC Radio Ulster.
"How on earth they thought security forces could be excluded, I don't know."
Mr Hain told parliament on Wednesday that the issue of paramilitary fugitives who were still wanted in connection with offences could not be dealt with in a one-sided fashion. He repeated that the British government would seek the inclusion of security forces suspects under any new arrangements.
Mr Hain said the on-the-runs legislation was an essential building block in negotiations which led to last July's groundbreaking declaration from the IRA that it was ending its armed campaign.
The government, he said, had tried to draw a line under the past and to deliver on a commitment in good faith. He admitted that time would be needed before the question could be addressed again.
"This is obviously not the right time," he said. "Despite the fact that we thought to deliver on an inter-governmental commitment from a few years ago and I carried out my duties diligently, this is not the right time to deal with this issue."
Reflecting a government view that more consultation, particularly with victims groups, is needed before a fresh attempt to resolve the issue is attempted, he added: "People need a long period to reflect and then see whether there is a consensus. I am not proposing to take any energetic action at all. For quite a period, I have said let's come back to this in the autumn."
A well-placed British source denied Sinn Féin claims that the question could have been dealt with without legislation.
The Irish Times was told that a question of such importance and sensitivity should only be addressed through legislation so that it could be held up to scrutiny by parliament.