Standard Grade qualifications are to be scrapped as part of a major shake-up of Scotland's exam system.

Education secretary Fiona Hyslop also revealed plans for new compulsory qualifications to test numeracy and literacy.

She told MSPs during a statement in Parliament that Standard Grades and intermediates are to be replaced by a new general qualification.

But Highers are to remain as the "gold standard" in the education system.

The proposals are subject to a consultation which will run from June until October.

The new certificates will be tested in fourth year through a mixture of an exam and assessment of general work through the year.

Mrs Hyslop said: "The shape of our future qualification system will be crucial for Scotland's young people and for Scotland as a nation.

"There is clear evidence that Scotland has a good education system. However, it can be better. Indeed, it needs to be better."

The aim of the system should be to "raise the bar" for all pupils, she said.

"For the first time all teaching in all subjects will be expected to embed literacy and numeracy - that is a difference of the new curriculum," she added.

"To help strengthen this focus, I propose developing two new separate awards to accredit young people's literacy and numeracy skills - the Scottish Certificate for Literacy and the Scottish Certificate for Numeracy."

The exams are likely to draw upon evidence from young people's work across the curriculum but also in part be assessed externally through an exam, she added.

The awards should also be made available to adult learners in colleges.

Standard Grade and Intermediate qualifications are set to be replaced.

Mrs Hyslop said the exams had served the system well, but said "education has moved on".

She added: "Standard Grade's real strength is generally felt to be its inclusivity, providing 'certification for all'.

"The unit structure of Intermediate qualifications is considered to be their best feature, providing flexibility and motivation for young people.

"I expect the new general qualification at SCQF levels 4 and 5 to deliver as many of these features as possible."

At SCQF level 3, Standard Grade foundation level will also be removed, with Access 3 providing an appropriate replacement.

Mrs Hyslop also said that pupils will no longer be expected to take exams before S4 and will instead have a "broad education" in the first three years of secondary school.

The new qualifications will have a key role to play in the new school curriculum which is being developed.

"It will be particularly important to ensure that our National Qualifications support the new curriculum and contribute to delivering the government's skills strategy," she said The government is also to look into ways in which the most able youngsters can progress through the system as quickly as possible.

"So, for example, those who are clearly capable of doing so could begin studying for Highers in S4," she said.

"This is in keeping with our wider objective to ensure qualifications support and reflect individual learning - rather than have learning determined by qualifications."

Measures to allow youngsters to sit Highers over 18 months or two years, instead of the one year at present to tackle the "two-term" dash, which pupils currently face.

The education secretary added that a "winter diet" of exams is also being looked into for more flexibility as it would allow study over 18 months.

Labour MSP Rhona Brankin welcomed the proposals in "broad terms" and said there was widespread recognition that change is needed.

She said: "Introducing the awards in literacy and numeracy does not in itself ensure that young people become literate and numerate and indeed does not ensure, as Labour believes, that Scotland should absolutely eradicate literacy."

She sought assurances that "functional literacy" will be taught from a young age.

Referring to the proposed baccalaureate qualification, she said: "Can the minister tell the chamber where the demand for the baccalaureate comes from, other than the SNP manifesto, and is she aware that the introduction of a Welsh baccalaureate has been problematic?"

Ms Hyslop said cross-party working was essential to making changes to the education system.

She said the literacy assessment would not be a leaving certificate and added: "It would be a certification for literacy and numeracy which would combine teacher assessment in the early years and be subject to assessment in S4.

"I also recognise the importance of embedding literacy and numeracy throughout the curriculum."

She said concern over baccalaureate was not shared in her discussions with employers and universities, particularly in science. She said the system would be different from the Welsh model.

Conservative MSP Elizabeth Smith said the current system was failing too many pupils at lower levels and welcomed the "fine tuning" of assessment in S4.

But she questioned the proposed baccalaureate and said: "What is the reasoning behind having the baccalaureate sitting alongside the Higher and Advanced higher? And what is the reason for having a baccalaureate that only deals in science and modern languages?"

Ms Hyslop said the purpose of today's announcement was to outline wider changes and that the baccalaureate would evolve through further discussion.

She said: "I am open to persuasions about the extending of the concept to other areas but because of the needs of the economy and our drive for sustainable economic growth, starting with sciences and language would be most appropriate."

Liberal Democrat Jeremy Purvis said his party supported reform but called for greater clarity over examinations.

He said: "The cabinet secretary proposes to abolish Standard Grades and replace (them) with a wider general certification but the government wants to add to this by an additional qualification in literacy and numeracy.

"These will be below the new qualification standard and it is unclear still where in the child's progression these will be taken.

"It is also unclear whether all children will be required to take these."

Ms Hyslop said over-assessment needed to be reduced in S1-3.

"The curriculum should be stretching young people, we don't need the qualifications system to do the stretching," she said.