Tony Blair has been called to speak at an inquiry into why British victims of Libyan-sponsored IRA attacks have been denied compensation when other nations have received large payouts.

The Northern Ireland Select Committee is looking into the Government’s role in securing the funding for those affected by the terror atrocities, which include the victims of the 1996 South Quay bomb that killed two and injured more than 40.

Under the dictatorship of the late Muammar Gaddafi Semtex was sold to the IRA, which was then used in a number of attacks carried out by the Irish terror group.

Tony Blair during questioning from the Foreign Affairs Committee

In a letter dated January 6 , committee chairman Laurence Robertson invites Mr Blair to give oral evidence at a date to be arranged.

Mr Blair briefly touched on the matter while he was questioned on a separate issue to do with his relationship with Libya, in front of the Foreign Affairs Committee, but victims felt he avoided the issue.

Read more: Tony Blair's dismissal of people affected by Libyan-sponsored IRA attacks is ‘abysmal’ says Docklands bomb victim

Chair of the Docklands Victims Association, Jonathan Ganesh, who has campaigned tirelessly for answers and compensation, has said he's delighted Mr Blair will be called in front of the committee.

Portcullis House, where Tony Blair will be called to speak in front of the Northern Ireland Select Committee

He added: "I think it's very good that Mr Blair has been called. On behalf of the victims I can say that we hope he will answer the committee's question directly and give us some answers."

Mr Blair provided written evidence to the Northern Ireland Select Committee in December, in which he claims there is little he can “usefully say” and that there had been “deeply misleading reports” about him in connection to the matter.

Mr Blair had a close relationship with Gaddafi and even rang him to warn him when he was about to be overthrown in 2011.

Former Prime Minister Tony Blair shakes hands with late dictator and former Libyan leader Muammar Gaddafi in Tripoli in 2004

Within the letter Mr Blair wrote: “Diplomatic relations with the Gaddafi regime had partially resumed in July 1999, as I recall, after Libya transferred the Lockerbie suspects for trial and made the agreement to pay compensation to the families of the victims.

“However, the rapprochement with Libya and the Gaddafi regime began in earnest in 2003 when, following the intervention in Iraq and the fall of Saddam, Libya took the decision to reveal and then destroy, under international supervision, its WMD [weapons of mass destruction] programme particularly relating to chemical weapons and its nuclear programme.

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"In addition, as opposed to sponsoring terrorism, which had previously been the case, the Gaddafi regime began an active cooperation with the UK and USA in fighting terrorism.

He then said “the issue of Lockerbie” was treated as a separate matter (families of the Lockerbie victims have received compensation) by both the UK and American Governments

He continues: “I understand why the victims of IRA terrorism should have wanted their claims raised at the same time as the settlement of the Lockerbie compensation in 2008; but for the Americans this was never going to be made part of this settlement since they were focused on US citizens affected by Lockerbie and the Berlin discotheque bombing; and I believe in any event they were precluded legally from such an action.

Read more: Terror victims create Gaddafi IRA Semtex Victims group for compensation fight

“I never tried to get the Americans to exclude the claims of IRA victims. I did not raise this issue with President Bush.

“I was in favour of the USA having good relations with Libya for the same reasons as I favoured the UK having such relations: it assisted in the fight against terrorism.

“It was therefore important that after resolution of the issue of compensation for the Lockerbie victims, the USA and Libya moved on to working together in that fight.”